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Binary Studio 15.06.2011

How We Work: Importance of the Location

List of Advantages

Our company’s residence is Donetsk, a large city in the Eastern Ukraine. Such location provides serious advantages in the means of outsourcing:

  • being close to Western European countries, where our actual and potential customers are situated;
  • having close cultural and economic ties with other European countries.

Why Geography Matters

Nowadays most managers who consider outsourcing their projects prefer neashoring. For example, according to some statistic researches, more than 50% of US companies choose or are going to choose Latin America countries as an outsourcing destination. For European companies, the countries of Eastern Europe are an attractive neashore zone.

What speaks for such a choice? Though outsourcing means remote cooperation, some amount of close contact is always necessary. Typically, a project manager visits the outsourcing team once every several months in order to see how the things are going and to share views and ideas.

Cultural Barrier: What It Means for Co-workers

Knowledge exchange between project members critically depends on how well they understand each other. Speaking a common language is quite important, but close mentality is also very helpful. Therefore, residents of close cultural regions cooperate easier.

Being a key element of industrial and transport system of Ukraine, Donetsk (by the way, sister city of Bochum, Germany) is closely connected with main European countries. So, cultural barriers for outsourcing here are close to none!


Michael T., technical analyst