Question

According to the ranking, which 10 countries are the best destinations for providing outsourcing activities?

Answer 1

There is a lot of research and analysis that goes into outsourcing business. For example, a company located in country A might consider country B because they have a great people score. A people score is measured by the nation’s people skills which would include language diversity, educational skills, and even the size of their information technology industry. Another very important part of doing business internationally is the political environment.

1. India- India is the most popular country for outsourcing. This is why it has become normal to hear someone who has an Indian accent, while you are attempting to activate your new iPhone. Companies across the world are reaching out to India because their culture is full of intelligent, efficient, and hard-working individuals

2. China- China is a country that is still adjusting to the world’s economy because it decided to begin to enter global business 21 years ago. Known for having the largest populous, China has over 1.3 billion consumers in its market. Manufacturers and retailers throughout the world jumped for joy when they discovered the opportunity that is - China.

3. Malaysia- Too many outsourcing newbies, Malaysia is a part of the top three global leaders. Its predicted net-value for the 2013 fiscal year is said to be close to $1.9 billion dollars. Known for its cost-effective and value-oriented services, Malaysia will be able to remain a key contender among it’s BPO (Business Process Outsourcing), SI (Systems Integration), and IT consulting segments.

4. Thailand- Thailand is a very popular outsourcing country because it has been deemed to be one of the most financially attractive countries in the world. Its low costs and high returns entice business professionals around the world to invest into this profitable country. However, the country’s downfall is its political infrastructure. Thailand lacks workers who are innovative, intelligent, and cohesive to whatever project gets thrown at them.

5. Brazil- Brazil is a very balanced country when it comes to outsourcing considerations. Their financial attractiveness, political/economic environment, and people skills are quite even.

6. Indonesia- Indonesia is a country that is nearing the IT leaderboard. The country has decided to move away from its dependence on exports, which made up a large portion of their outsourced business. Indonesia is now restructuring its strategy toward economic growth.

7. Bulgaria- Bulgaria is making Eastern Europe proud through its fundamental strategy, “nearshoring”. This country offers less expensive labor and services toward neighboring countries, which include the United States and Western Europe.

8. Philippines - With a growth rate of 46%, the Philippines have become a strong competitor among the outsourcing industry. This growth rate has been maintained due to this country’s low labor costs, highly skilled workforce, and language diversity.

9. Chile- Chile has become a big player in the outsourcing world due to its advantageous location. Over forty percent of Chile’s exports go directly to Europe and the United States. Known for one of the highest acclaimed research and development sectors in the world, Chile has been deemed to have the highest ranks in EIU’s “IT Industry Competitiveness Index of 2009” One of the other major strengths of this country is its stable government and currency in Latin America.

10. Japan- Japan wishes to change how it does business with other countries by changing its current strategy while challenging the key competitors. It is no surprise that these types of organizations are appearing mainly because the United States offers one of the largest consumer bases who are willing to buy! buy! buy! in the world. Japan is currently a low standing player, but with time and strategy, they will become a part of this list, rightfully.