Sub-contracting in Eastern Europe supports employment domestically

All TechniSourcing clients show steady growth.

Mac Kinsey, the most credible of the major global strategy firms have recently published a very interesting study regarding the impact of sub-contracting in Eastern Europe on industrial employment.

To sub-contract in Eastern Europe, you need to:

  • Want it
  • Speak English

For most Western European countries, notably also for France, sub-contracting in Eastern European countries tends to be avoided. Outside of the UK, because of local educational programs, many directors of small and medium sized companies do not speak English well enough to act professionally with complete confidence.

Meanwhile, industrial employment collapses.

20 years ago, in Germany, the situation was notably very similar to what is currently seen in France. Gerhard Schroeder, the then chancellor of Germany, led the charge for adopting this type of external sub-contracting, the sub-contracting links with Eastern Europe were considerably developed. TechniSourcing has noticed in Bulgaria, Romania and Moldova, many of the outgoing products are destined for prestigious German companies.

This reorientation of strategy has enabled German companies to increase their margins. It has also allowed them to invest in high-level personnel and very good equipment. They can now focus on strategic activities and adding value to products.

Result: good robust figures, German industrial employment is simultaneously progressing at the same speed as the sub-contracting in Eastern Europe.

Created Thursday 10 July 2014


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