From the European Outsourcing Conference last week: it's difficult to do large scale outsourcing in Easter Europe:
The delegates realised that Eastern European nations do not have the scale of staff to resource huge outsourcing deals, with the majority (58 per cent) believing that different geographies are suited to different types of outsourcing projects. Only 17 per cent believed that Indian providers are leaps and bounds ahead of all other geographies.
Absolutely. There are just not the numbers here necessary to be able to do it efficiently.
What you can get are a few good programmers on a project.
Or a lot of reasonably multilingual (we're not talking about the Netherlands or Austria here) customer service bodies.
The very high euro - which seems to be carrying the local currencies with it - does make European outsourcing pretty much a local sport at this point. But there is no shortage of European companies and divisions looking to cut costs without transcontinental travel.