Archive for April 6, 2009

Low wages still give Bulgaria outsourcing edge.

Bulgaria still offered the best location for Western European businesses looking to outsource in the midst of the economic crunch, according to a survey by global real estate services firm Jones Lang LaSalle. The country’s main advantages were the lowest real estate and labour costs.

Countries in Central and Eastern Europe still offered the best value in challenging times, as opposed to their western neighbours, Bulgarian weekly Stroitelstvo Gradut quote the firm’s analysts as saying.

Jones Lang LaSalle’s survey, titled Onshore, Nearshore, Offshore:¬†Unsure?, focused on the Czech Republic, Poland, Hungary and Romania, where the firm has offices. Bulgaria, however, offered one of the lowest office rent rates in Eastern Europe.

The stable economic and political systems, as well as European Union membership, were cited as competitive advantages. At the same time, however, Bulgaria had not adopted the euro yet and with an average labour cost of 2.09 euro an hour in 2007, projected to rise to 2.95 euro an hour in 2012, wages were among the lowest in Europe.

Jones Lang LaSelle reckons that business outsourcing and subsequent optimatisation of business services will be the primary propeller of demand augmentation in the region for the future, as companies will want to expand in invest in locations where they will want to cut down expenses and ensure growth. Source: Sofiaecho