Poland, Egypt dominate Europe’s nearshoring market
QUEBEC, CANADA — As Europe grapples with geopolitical turmoil, persistent inflation, and looming recession, enterprises have sought various sourcing strategies to ensure the continuity of their customer services.
According to the 2023 Ryan Strategic Advisory Front Office CX Omnibus Survey, Poland and Egypt emerged as resilient nearshore destinations favored by decision-makers from the United Kingdom (UK), Spain, and France.
Poland’s resilience as a nearshore hub is remarkable. Despite the conflict in Ukraine, the country experienced a 16% increase in foreign direct investment in 2022.
Egypt also remains a preferred choice, particularly for its multilingual services. With the support of the Information Technology Industry Development Agency (ITIDA), at least 29 multinational outsourcers and IT firms announced investments in the country that will create another 34,000 jobs in the BPO and ITO sectors in the coming years.
In France, a trend towards mid-sized service providers and domestic delivery has emerged, largely due to the rise of remote working alternatives. However, exorbitant domestic delivery costs and stringent wage laws have driven businesses towards offshore solutions in regions like Germany.
While UK businesses prefer outsourcing to India, South Africa, and Jamaica, Spanish companies opt for Latin American countries, and French enterprises favor African nations.
Cost savings have also taken precedence in 2023, and business continuity remains key for outsourcing partners. Despite these shifts, Poland and Egypt continue to be nearshore favorites, testifying to the resilience of their BPO sectors. Other nearshore markets have also matured as niche destinations.
With these developments, Ryan Strategic Advisory’s report concluded that the European nearshore will continue to offer vibrant sourcing options, even amid economic uncertainty.
