In midsize cities like Wroclaw and Gdansk, Poles are doing back-office work not only for Indian outsourcing companies like Infosys, Wipro and Tata Consulting Services, but also for major corporations like IBM and banks including Citigroup and Bank of New York Mellon.
About 110,000 people work in what is broadly known as the business services industry in Poland. The category includes outsourcers like Infosys that take over such functions as finance or information technology for customers, as well as banks and other companies that set up in-house operations to do their own back-office work.
At current growth rates, it is conceivable that in a few years business services in Poland could overtake the auto industry, which employs about 140,000 people, as a leading source of private sector jobs. (The public sector, employing about a quarter of Poland’s 15.7 million workers, is still the country’s largest source of jobs.)
Sigelman sees a chance (in the Philippines) to replicate the low-cost outsourcing model that
worked for him in India. Modular construction companies that once did
only simple projects now can assemble complex equipment complete with
instrumentation and electrical, mechanical, and ventilation systems.
Sigelman says that thanks to advances in engineering software, “every
single bolt and screw is noted in the computer.” As a result, “you can
visualize how those things work on modules that are far denser than
before,” says Sigelman, who calls AG&P’s model “IPO,” or industrial
"But Park and Bahn did. How? To start with, they crowdsourced the design. Instead of hiring a bunch of marketing people, as tech companies usually do, they asked their user community for volunteers to help conceive a new site. Then they selected a handful of the most eager users and trained them on the basics of Silicon Valley-style product management. Next, Park and Bahn needed to find a designer. They used 99designs.com, which hosts design competitions, for a two-week contest that attracted hundreds of designers, yielding a design they used as the theme for the new site. The contest, prize, and designer's time cost $9,200.
They broke up Web development into two tasks: front-end engineering (turning design artwork into code) and back-end engineering (making the code actually function). They built their technology on top of WordPress, phpBB, and Drupal—which are free, open-source platforms. Front-end engineering usually requires sophisticated coding done by contractors who earn as much as $100 an hour. Instead, the Beat The GMAT team turned to a service called PSD2HTML.com—which converts Photoshop design files into HTML and CSS code. This service costs $160 to $220 per Web page, totaling $4,500. For back-end engineering, they hired four developers from Hungary and Ukraine on the outsourcing website oDesk. They paid $15 to $20 per hour. The entire back-end engineering cost $18,000."