Thoughts of an IT professional

August 24, 2006

Some effects of IT outsourcing in Romania

Filed under: IT in SE Europe

I was talking to my cousin in the beautiful(??) country of Romania about developments in the IT industry over there. From what I remember it looks like the wages in the IT industry have shot up significantly, being one of the very few drivers of salary growth over there. From some email I got from a friend in Romania it looks like positions which require 3 to 4 years of experience are going for at least 1000-1500 euros a month. Unfortunately for IT professionals some costs (such as the cost of owning a home) have greatly outpaced salary growth…
One of the effects on the locals will be the slow disappearance of in-house IT departments. Many businesses have in-house IT deparments covering pretty much all the spectrum of an IT operation: Oracle DBAs, JEE specialists, sys-admins, etc… Obviously, this cannot be supported anymore because of the migration of IT specialists towards better-paying jobs coming from foreign corporations. The local businesses are left with a problem: who will continue to carry out our in-house, incredibly customized and brittle IT operations?
In the problem lies the opportunity: an entrepreneur could create an IT company that implements these processes (preferrably using an open-architecture in order to accomodate customers as diverse as possible), have the businesses shed their IT departments (they cannot afford them anyway) and have them outsource their IT operations to its company. Outsourcing in the land of off-shoring seems contrarian, but it is one of the few viable options that a business can use in order to continue to automate its processes (book-keeping, customer relations, etc…).
Open-source could play a very important role in the implementation of an outsourced environment, please remember that SE Europe is dirt poor. Operations Support Systems for Java could answer some questions about an open architecture for creating very diverse and customized implementations of various business processes.
Opportunity lays with providing IT services to home-grown businesses as well as to the off-shoring behemoths that are visiting the area.

IT in South-Eastern Europe

Filed under: IT in SE Europe

I decided to create this category in order to keep up with the latest developments in that part of the world. I happen to call Romania my home country and I am interested in what happens over there, IT-wise or otherwise.