Object structure

Geographia Polonica Vol. 82 No. 2 (2009) ; Investigating the emergence of software development centres in Central and Eastern Europe


Geographia Polonica Vol. 82 No. 2 (2009)


Micek, Grzegorz



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24 cm

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Subject and Keywords:

software development centres (SDCs) ; offshoring ; foreign direct investments ; return migration ; Central and Eastern Europe (CEE)


The emergence of foreign software development centres (SDCs) in Central and Eastern Europe has led to some debate over the reasons and consequences of location decisions. This paper analyses those factors that influence location and also the consequences of foreign direct investment in software development centres in Bulgaria, Estonia and Poland. Foreign companies are compared and contrasted with the indigenous SDCs which are subcontractors for foreign companies or export to foreign markets. This paper questions the degree to which cost-related considerations influence location decisions, contrasting their significance with ‘return migration’ and the search for highly qualified graduates. To ward off growing wage pressure, SDCs provide more value-added services. Foreign SDCs move up the value chain, acquiring new competences. It may be argued that an increasing shift can be observed from a dependent mode based on a dependency on a foreign headquarters to a developmental type characterised by growing freedom. The local embededdness of foreign SDCs in the analysed countries is usually limited. However, ‘backshoring’ will not occur in the near future due to their high quality of work and improved efficiency.


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Geographia Polonica





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0016-7282 ; 10.7163/GPol.2009.2.2


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Copyright-protected material. May be used within the limits of statutory user freedoms

Digitizing institution:

Institute of Geography and Spatial Organization of the Polish Academy of Sciences

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Central Library of Geography and Environmental Protection. Institute of Geography and Spatial Organization PAS

Projects co-financed by:

European Union. European Regional Development Fund ; Programme Innovative Economy, 2010-2014, Priority Axis 2. R&D infrastructure





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