Cost-effectiveness of the Far East vendors is based on its huge population and wealth of labour. In IT business, India is rich with work force in industrial automation, including programmers. During 80’s and 90’s, the greatest IT expansion in India occurred in Bangalore, the capital of the Indian IT industry.
Shifting the market focus to the Far East has set new challenges for the European IT industry, raising a question of how to maintain its competitiveness.
European companies therefore established a new value proposition, completely customized to customers’ requirements. Their value proposition goes beyond work performance and service quality, towards total customization. Except cultural compatibility and easier communication, European companies showed extreme mobility and availability to travel wherever and whenever the customer requires. Utilized customization added value to the products and services of European IT companies, and confirmed their competitiveness in the world market.
Hence, European IT industry continued its growth, contributing at the same time to the development of the economy and society of the Old Continent.