The top ten outsourcing destinations in the world
No matter what Barack Obama might say, it is certainly not possible to kill outsourcing. It has and will continue to take place, after all which company would not like to see their profits soar. A list of top ten locations for outsourcing has been released by Gartner and the ranking is based on cost, cultural compatibility, data and intellectual property security, economic environment, educational system, globalization and legal maturity, government support, infrastructure, labor pool, language, political and privacy.
India
Even though India is leader in terms of outsourcing but its relative share of the overall worldwide total continues to decline.
China
India's neighbor China has been giving tough competition to the former and ranks quite well in terms of infrastructure and government support but does not perform well in terms of cultural compatibility parameter and language.
Australia
It is an attractive outsourcing destination which ranks high in terms of cultural compatibility, data and intellectual property, infrastructure, political and economic environment and globalization and legal maturity but since it is a mature market it offers restricted cost savings.
New Zealand
It ranks high in terms of cultural compatibility, infrastructure and language but offers limited cost savings.
Singapore
It is another country which ranks high in terms of security and privacy of data, legal maturity, globalization and intellectual property but as it is also a mature market here too the cost savings are limited.
Malaysia
This country has invested heavily for promoting outsourcing in the country and has already started to give competition to leaders in this industry.
Indonesia
Though it's a new entrant but has a large pool of labor and well established industry base but due to its political instability companies still think twice about entering it.
Philippines
Even though Philippines ranks high in terms of cost savings but its political and economic environment still raises certain questions.
Thailand
It ranks high in terms of infrastructure and cost but ranks low in terms of cultural compatibility, language and political and economic environment.
Vietnam
Though in terms of cost it gets a very high rating but seems to be ranked as worst in terms of security and privacy, intellectual property, cultural compatibility and language.
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Comment by Tanmoy Sarkar on May 31, 2010 5:02 am
Yeah it’s true outsourcing is getting more popular day by day.
Comment by JDM Parts on June 1, 2010 2:15 pm
This is definitely a very informative article. I’ve been looking for this for a long time
Comment by Peter on June 5, 2010 8:25 am
Awesome article on outsourcing. I am all agree with your view. Keep posting. Thanks
Comment by Preeti Singh on July 14, 2010 10:22 am
I was hoping to see Latin American and Eastern European countries on your list. Still, no matter where you plan to outsource your business, there are always risks involve and it is your duty to minimize it as much as possible. I believe major issues like language and security make those brick and mortar businesses think twice about entering the world of outsourcing.
Comment by Ajeva on July 27, 2010 5:38 am