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Asian countries take precedence as outsourcing destinations

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Asian countries take precedence as outsourcing destinations
Shey Paurillo
by Shey Paurillo
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Asian countries are still at the cutting edge of outsourcing according to a survey released by the global management consulting firm, A.T. Kearney.

Among the top destinations preferred by multinational companies to outsource their operations offshore to are India, China and Malaysia.  Philippines has improved its position from last year by placing seventh in the list.

Top 10 outsourcing destinations according to A.T. Kearney:
  1. India
  2. China
  3. Malaysia
  4. Mexico
  5. Indonesia
  6. Thailand
  7. Philippines
  8. Brazil
  9. Egypt
  10. Bangladesh

Offshoring potential in 51 countries was measured by A.T. Kearney Global Services Location Index based on people skills and availability, financial attractiveness and business environment. The objective of the A.T. Kearney report is to aid companies’ decisions to outsource back-office functions such as IT services and BPO to other countries.

India tops the chart for its industry size and people skills. Many leading ITS companies in India are stretching out their traditional outsourcing services to take in R&D (Research and Development), product development and other back-office operations and niche services.

Businesses that are involved in information technology and advanced analytics are booming in China as the country’s economy gears more towards the service industry. Cost competitiveness on lower-end functions however, are limited by the increasing salary and compensation of employees.

 

Source: The Wall Street Journal

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