Use of outsourced IT personnel in Central and Eastern Europe

The IT services market in CEE continues to demonstrate steady growth at nearly 6% per year with the investment boost in digital transformation projects in the region peaking at 16% in 2024. The strategic utilisation of outsourced IT personnel has become a critical component of business operations across various sectors. CEE has emerged as a prominent hub for outsourcing, offering a robust pool of highly skilled IT professionals at competitive costs.

CEE presents a unique blend of opportunities and challenges for businesses seeking to leverage outsourced IT services. Countries in this region offer a combination of technical expertise, linguistic capabilities, and cultural compatibility, making them attractive destinations for outsourcing. However, navigating the legal frameworks of multiple jurisdictions requires a nuanced understanding of local laws and regulatory requirements.

The following chapters analyse specific legal aspects of outsourcing in key CEE countries to provide detailed and practical guidance. Whether you are a multinational corporation exploring new outsourcing destinations or a local enterprise seeking to optimise your IT functions, this guide serves as an invaluable resource for making informed decisions and achieving successful outsourcing outcomes. This is a comprehensive overview of the regulatory landscape for outsourcing IT personnel in the CEE region, focusing on eight key jurisdictions: Bulgaria, Hungary, Romania, Turkey, the Czech Republic, Poland, Slovakia, and Ukraine.

This guide answers key questions, including:

• Can IT specialists be engaged directly by a foreign company?
• Can teams be hired via an intermediary (an outsourcing company), and is this common?
• What kind of agreements should be entered into between the IT specialist and a foreign customer?

IT outsourcing is a complex process that often requires expert advice and step-by-step guidance. CMS, a full-service law firm with a strong presence in all covered countries, offers extensive experience in assisting IT companies with their outsourcing needs in the region. Our multijurisdictional team is available to support you in navigating these legal frameworks effectively, ensuring successful and compliant outsourcing operations.