Outsourcing in Eastern Europe?

2013/09/03 (11 years ago) by Julija Moisenko

Constantly rising prices of digital design services encourage companies to search partners in new markets. What our Eastern European neighbors can offer?

Specifics of digital design markets in different regions

According to Julija Moisenko, CEO of digital design production company from Lithuania Gamadigi, outsourcing in Lithuania is still not popular and the main reason for that is a relatively small market. For this reason, company also operates in Scandinavian and Western European markets.

“The specifics of Lithuanian and Western European markets, despite some similarities, are really different. For example, when company in Lithuania carries out marketing campaign, they can only select from few media channels. For this reason, there is only a need for few adaptations of the material (banner resizing, prints in different journals, etc.). Meanwhile in the Scandinavian market, similar marketing campaign would require to adapt banners or prints to hundreds of different formats. Digital design is still a luxury service in Lithuania. “- says J. Moisenko.

“In conclusion, I’ve found that Scandinavian and Western European companies usually outsource banner resizing and web development services. Scandinavians use at least 15 different banner sizes, while in Lithuania only 6-7 standard sizes are needed. Lithuanian customers mainly look for print design and banner adaptations. They are still devoted to advertisements in press, while Scandinavians are quickly moving away from this channel while concentrating on the internet, “- notes J. Moisenko.

Outsourcing in Lithuania is much cheaper

However, the main goal of all companies, buying outsourcing services, is to reduce their operating costs and receive a qualitative product as quickly as possible. CEO of Gamadigi explains that one of the main advantages for Scandinavian companies when cooperating with Lithuania are lower pay rates of designers.

“The hour of designer work in Scandinavia is several times more expensive than in Lithuania. For this reason it is financially beneficial to assign only the creative part of the project to the in-house designer while outsourcing all the technical work to another company, in this case, Gamadigi. In this way company can save on personnel costs, as it does not need to hire additional employee and pay all the additional employee and his employment taxes: insurance, premiums, invest in skills development and so on,”- explains CEO of digital design company.

However, in order to get the attention of potential customers from foreign countries, Eastern European countries still need to overcome a few stereotypes. According to J. Moisenko, Lithuania and the Baltic region are often affected by the negative image of post-Soviet space.

“Companies from Western Europe sometimes do not trust Eastern Europeans qualification. They are afraid, that the delivery of the final product might not meet their high quality requirements. There are even concerns that the company might not be in business tomorrow! For these reasons companies from the Baltic region and Eastern Europe constantly need to prove that they are reliable and available anytime – in a single call”, – says J. Moisenko.

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Julija Moisenko

Julija has gained her degrees in Business organization, marketing, sales and communication management, during her studies in Lithuania, Sweden and Estonia. She has more than a nine year working experience in online and offline marketing communication field focusing on Scandinavian and Baltic markets. She speaks English and Russian, and currently continues her Swedish languages studies. Julija is interesting in mountaineering during her free-time.

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