New research from BroadGroup contends that countries in Central and Eastern Europe are well-positioned to benefit from a new wave of outsourcing and datacenter development. A conference bringing together datacenter and cloud firms with companies interested in creating regional datacenters or outsourcing operations is scheduled for Prague in February.
The region also is looking more hospitable for IT start-ups. According to Dutch journalist Michiel van Blommestein: “Start-up scenes have long been a game almost exclusively played in the U.S. and Western Europe. But, with multinational tech companies establishing themselves in Central and Eastern Europe, more and more people are trying to make it big with their own IT companies, making the area now a viable option for new start-ups.”
The largest start-up market appears to be Poland, with mentions of Romania and the Balkans as well. Belarus and Russia are providing regulatory, tax, and training support for their growing IT industries.
So is Ukraine, where outsourcing has become a billion dollar industry. Kiev has cut taxes and cancelled VAT for the industry. Reported the Financial Times: “Looking to the future, the sector has the potential to become a real force for Ukraine’s modernization.”
Even in difficult economic times there are opportunities beckoning Eastern Europe. Over time the former Soviet states could create their own mini-Silicon Valleys, filled with entrepreneurs determined to find practical solutions to the region’s unique economic problems.