Central and Eastern Europe’s BPO sector gains confidence as demand surges 

A recent regional survey on Business Process Outsourcing (BPO) confidence has revealed a notable upswing in optimism across Central and Eastern Europe (CEE), underscoring the region’s growing role as a strategic outsourcing hub for global enterprises. The study, which polled a diverse range of BPO providers and stakeholders, indicates that countries in CEE are steadily cementing their position as go-to destinations for cost-efficient, multilingual, and business support services. 

“What makes Poland, Kosovo, Serbia, and Romania stand out this year is the high confidence respondent BPOs have in their labor markets and the ability to source multilingual talent in the region. World-class infrastructure and high levels of safety and security also secured their rankings in the top ten,” says Matt Kendall, the Founder of Cognitive Copy and one of the authors of the Offshore BPO Confidence Index 2024.

Rise in confidence across CEE 

While established outsourcing giants like India and the Philippines remain key players, the CEE region’s star is rising. Respondents to the survey reported heightened confidence in long-term growth prospects, citing improved talent availability and robust infrastructure. These factors, according to participants, have broadened CEE’s appeal—particularly among European organisations seeking proximity, cultural alignment, and business continuity advantages. 

BPO providers in Poland, Romania, Bulgaria, and Czechia have each shown marked improvements in competitive positioning. Surveyed executives highlighted three main drivers: 

1. Tech-savvy workforce: Educational systems that prioritise STEM disciplines and language proficiency contribute to a talent pool skilled in high-complexity tasks, such as IT support, analytics, and RPA (robotic process automation). 

2. Geographical and cultural alignment: Central and Eastern Europe’s location within the European time zone makes it easier for businesses to coordinate with their outsourcing partners. Coupled with shared cultural and professional standards, this synergy facilitates smoother collaboration and quicker response times. 

3. Cost competitiveness and investment incentives: Compared to Western Europe, CEE countries continue to offer competitive pricing structures. Government-backed incentives and infrastructure investments further enhance their attractiveness, drawing in companies eager to tap into both affordability and quality. 

Sector diversification and resilience 

The survey also pointed to a strategic shift in the types of services CEE providers are offering. Once associated primarily with back-office administrative tasks, the region’s BPO landscape now spans complex functions like finance and accounting, research and development, and IT operations. This growing diversification not only boosts profit margins but also buffers the region against market volatility, creating a more resilient outsourcing ecosystem. 

By consistently delivering high-quality services and adapting to clients’ evolving demands, CEE-based providers aim to position themselves at the forefront of global outsourcing innovation. 

Looking ahead 

The positive sentiment captured in the survey suggests that Central and Eastern Europe’s BPO sector is on a steady upward trajectory.

“Still, BPOs believe there’s work to be done to strengthen each country’s industry ecosystems. Respondents in Kosovo, Serbia, and Romania mainly expressed low to moderate confidence in this category due to a perceived lack of industry unity. Still, there’s an opportunity to learn from Poland’s success in this area and attempt to replicate it,” Kendall adds.

With organisations worldwide adapting to hybrid work models and seeking value-rich partnerships closer to home, CEE nations are well-placed to meet the moment.

As confidence soars, industry experts anticipate that the region will continue to attract new investment, create skilled jobs, and drive sustainable growth in a fast-evolving global BPO landscape. 

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