In the past six years, the worldwide spending on outsourcing IT services achieved $288 billion. For 2019, the industry is set to increase by 5.84%.
Generally, the outsourcing market is very profitable and shows a promising return on investment. This brings the Eastern European legislators to take things seriously in developing a friendly ambiance for the IT investors.
Belarus is not exempted for this great opportunity. What are the benefits when you outsource your IT services to Eastern Europe and what makes a successful partnership? Read on this article to know more.
Belarus is the location where Viber and MSQRD all started. Viber, the widely used messaging service worldwide has over 400 million active users. This was created by a Viber Media, a Belarusian-Israeli startup. In 2014, Rakuten acquired the service for $900 million.
Its recent success story was brought by MSQRD, a face-swapping mobile app created by Masquerade Technologies. The Minsk-based firm made headlines days before the 88th Academy Awards. Prior to the ceremony, Jimmy Kimmel, an American tv host, writer, comedian, and producer, was instrumental in promoting the app on his show. Facebook bought MSQRD several weeks later. Also, there was the ‘World of Tanks,’ one of the most well-known video games of the Atlantic, which was developed in Belarus.
Through the years, the IT industry continues to advance. Compared to other Belarusian industries that are hugely controlled by the government, IT has ever since been independent. In 2018, the country’s economy plunged by 4%. In contrast, the IT sector, soared by 20%. At present, Belarusian high-tech firms attained 1.5% or $700 million of the country’s GDP. In barely 3 years, the industry is anticipated to increase by 17.78%.
Issues and challenges in IT outsourcing in Belarus
IT industry’s progressive development. As reported, the Hi-tech Park services export achieved $1 billion in 2016 (up 20% from the previous year). However, the Belarusian IT industry has yet to reach its pinnacle. The market has been impacted by inflation and other economic factors.
If you decide to outsource technical support or software development to Belarus, look for a company with main offices in the U.S. or Europe and check whether your software provider employs the high standard of software development and project management practices.
Complex taxation. Despite Belarus being the 9th best nation for start-ups, local business owners usually encounter problems in paying rent and raise issues about the ever-changing tax system. This is the reason to discuss everything with your selected software development company, which is a member of the Hi-Tech Park community.
Corporate risks related to unsecured property rights. Always ensure to work with a reliable foreign capital firm. The company’s contract should be administered under international commercial law. Signing a non-disclosure agreement is necessary.
Sometime in 2012, the Belarusian Hi-Tech Park businesses reached their first billion. In barely four years, the country’s top IT service vendors and outsourcing firms are earning $3 to $4 billion each year. Software development is where Belarus’ economic future lies. When you find a reliable vendor, you are assured that your project with a Belarusian company will be successful.