At Alten Capital we track four main regions from where technology services and software development services are delivered: North America, Latin America, Central and Eastern Europe, and Asia (primarily India).
Developed markets, including North America and Western Europe, have a large share of digital transformation budgets, and talent development has not kept up with the demand for these technology professionals. Different estimates put the tech talent shortage currently in the millions worldwide and expected to be in the dozens of millions in the next 10 years. This supply-demand gap in developed markets has enabled the buildout of alternative centers of technology talent worldwide. We already shared views on the Latin American region (https://alten.capital/blog/understanding-nearshore-dynamics-in-latam). Below is an analysis on the Central and Eastern European region (CEE).
There are between 12 and 18 countries in Central and Eastern Europe depending on the source. The closeness to Western Europe, and the relatively lower cost, make the region an ideal destination for software development and technology services outsourcing for Europe, and for eastern US.
Most of the items in these tables are self-explanatory. We took data from multiple sources to compile this information. FDI Net Inflows means the foreign direct investment into the country as a percentage of GDP. The English proficiency rank compares that country with a total of 113 countries worldwide.
Different sources will inform distinct values for each category. We do not expect every figure from these tables to be scientifically accurate, but directionally correct.
At Alten Capital we invest in business services and technology services companies. Please reach out to explore a potential partnership.