Introduction ‘Central and Eastern Europe IT Outsourcing Review’ is a research project undertaken annually by the Central and Eastern European Outsourcing Association (CEEOA, www.ceeoa.org) since 2007. The main objectives of the research are to provide impartial and varied perspectives on the state of the market for IT outsourcing services in the CEE region; to provide potential clients with all the information needed to make decisions about outsourcing activities to the region; and to lower the barriers for entry into the CEE outsourcing services market. This year’s ‘CEE IT Outsourcing Review 2010’ was managed by the Ukrainian Hi-Tech Initiative (www.hi- tech.org.ua) with the support of other national outsourcing and software development associations from the Central and Eastern European (CEE) region, as well as CEEOA members. As part of the project a catalogue of IT outsourcing services providers in Central and Eastern Europe (ITOlist), located at www.itolist.eu, was created. The primary objective of the ITOlist.eu catalogue is to create an easy to search permanent, annually updated, regional catalogue of companies providing IT outsourcing services in the CEE region. Currently, the ITOlist.eu catalogue contains information on more than 200 companies. Visitors to the site can search companies on the list by four criteria, as well as by more than 250 technical and business categories in the advanced search field. Key Conclusions In 2009, the software development and IT outsourcing services provider industry in Central and Eastern Europe successfully overcame all of the challenges of the recession of 2008 and resumed its previous trajectory of growth. The largest software development services providers became the main drivers of the industry’s growth. This resulted from their number of long-term contracts and big clients who transferred their projects on software development to their CEE outsourcing partners beginning in Spring 2009. During the recession of 2008 and into 2009, no significant bankruptcies, closures or IT outsourcing company failures were reported. The industry used the recession time to reorganize internal business processes within companies, to optimize costs, and to further develop more qualified operational business management processes. Such rapid recovery by the industry, and resumption of its previous growth rates, are testament to the strength and solid prospects of the business model used by Eastern European outsourcing companies in their strategic development. ©Copyright 2010 CEEOA, all rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. This document may be distributed provided it is unaltered, in its entirely, and free of charge. All the information contained herein is for informational purposes only. To copy otherwise, to republish, to post or to redistribute to lists, requires placing link to the CEEOA website http://ceeoa.org ©Copyright 2010 CEEOA, all rights reserved General Sponsor 2 Table of Contents Introduction......................................................................................................................................2 Table of Contents ............................................................................................................................3 List of Figures..................................................................................................................................4 Executive Summary ........................................................................................................................7 Expert View ....................................................................................................................................15 Country Overview..........................................................................................................................28 Market Volume........................................................................................................................30 Number of Companies............................................................................................................34 Number of Specialists.............................................................................................................35 Market Rates...........................................................................................................................37 The Main Trends in the IT Outsourcing Industry in the CEE Region....................................41 Country Profiles.............................................................................................................................51 Albania.....................................................................................................................................51 Belarus....................................................................................................................................52 Bulgaria...................................................................................................................................53 Croatia.....................................................................................................................................54 Czech Republic.......................................................................................................................55 Estonia.....................................................................................................................................56 Hungary...................................................................................................................................57 Latvia.......................................................................................................................................58 Lithuania..................................................................................................................................59 Moldova...................................................................................................................................60 Poland.....................................................................................................................................61 Romania..................................................................................................................................62 Serbia......................................................................................................................................63 Slovakia...................................................................................................................................64 Slovenia...................................................................................................................................65 Ukraine....................................................................................................................................66 Partners and Sponsors.................................................................................................................68 General Sponsor of ‘Central and Eastern Europe IT Outsourcing Review 2010’.................69 Sponsor of ‘Central and Eastern Europe IT Outsourcing Review 2010’...............................70 Sponsor of 'Central and Eastern Europe IT Outsourcing Review 2010'……………………..71 About CEEOA ................................................................................................................................74 List of Respondents......................................................................................................................79 Albania.....................................................................................................................................86 Belarus....................................................................................................................................88 Bulgaria...................................................................................................................................98 Croatia...................................................................................................................................104 Czech Republic.....................................................................................................................105 Estonia...................................................................................................................................107 Hungary.................................................................................................................................108 Latvia.....................................................................................................................................109 ©Copyright 2010 CEEOA, all rights reserved General Sponsor 3 Lithuania................................................................................................................................111 Macedonia.............................................................................................................................114 Moldova.................................................................................................................................116