A few days ago I was comparing labour costs between european countries on the Eurostat's web site with a client. They had operations in Uk, Spain and Poland. While my company, Xl World, owns Bpo centers in Romania and Albania.
I realized that labour costs double (almost exactly) between these countries.
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Albania: 250 Eur Romania: 500 Eur Poland: 1.000 Eur Spain: 2.000 Eur Uk: 4.000 Eur And every one of these countries has its own value proposition for outsourcing services:Uk: excellent infrastructure and wide availability of excellent skills Spain: Lowest-cost western country Poland: First eastern european country to enter Eu. Good skills and stability Romania: Current price leader in Eu for multilingual support Albania (and others in the southern baltic area): bottom cost emerging european country With all these choices, clients are becoming more and more sophisticated in selecting the best location for enterprise process outsourcing, and try to balance cost with local skills, country stability, ease of travelling etc.
More and more outsourcing clubs are forced to offer a mix of dissimilar locations to their clients in what many call a best-shore model.
The good news is that I don't see such a strong corollary on the job shop as activities move from country to country. In fact the whole shop is growing and many jobs losses are rapidly compensated by new ones.
Forrester predicts that total spending on Bpo in Eu will rise from Eur11.0 billion in 2006 to Eur18.9 billion in 2011. And, since a lot of this spending is advent from emerging countries, the whole amount of citizen employed in outsourcing clubs will grow far more than the value of the market.
Labor Cost Comparison in the middle of European Countries - company Process Outsourcing market LOWES NEWS VA
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