eFinancialCareers

Central and Eastern Europe (CEE) might be being touted as the new outsourcing alternative, but India insists it’s not giving up without a fight.

India has long been the favoured destination for banks’ operational IT and infrastructure, but a new report suggests a rising rupee and rocketing salaries could force the banks to look elsewhere – and Eastern Europe looks set to benefit.

Alexandra Robertson, a consultant at CB Richard Ellis Group who co-authored the report, says: “Central and Eastern Europe will come to the forefront of many banks’ agendas, particularly given current economic conditions.”

However, a report by Economic Times (India) insists that the broad talent base in the country means Eastern Europe does not currently pose a threat. This is in spite of the average IT worker salary increasing by 12% a year. The report predicts it will be five years before the region feels the heat.

Citigroup and ABN Amro have offices in Poland, and UBS is expected to open an office in Warsaw next year which will employ 250 people.

A UBS spokesman told Financial News: “Reasons for focusing on Poland as a location include EU membership and a skilled labour market.”

Meanwhile, recruiters say Mumbai remains a location of choice – particularly because of rising costs in areas like Singapore. Lehman Brothers, for example, currently has 80 open IT positions in India, whereas it didn’t have any this time last year.

Rob Hughes, Asia-Pacific consultant at Astbury Marsden, says candidates are leaving India for better roles elsewhere: “They start in India, gain investment banking knowledge in Singapore development centres, then they can make the move to Tokyo or Hong Kong for project management/front office roles.”