Offshoring, outsourcing businesses processes to companies located overseas, is a complicated, evolving thing. Nearshoring, outsourcing to companies in the same nation, has become a popular option, but offshoring remains the most popular choice, as well as the most cost-effective solution. However, that doesn’t mean that it hasn’t changed over the years. Outsourcing destinations come and go over time due to a number of factors, including workforce changes, economic shifts and the evolution of technology. The outsourcing destinations that were most popular and successful 20 years ago might not be the same ones out there today.
For business owners, understanding the top outsourcing destinations is important. You should know more than just where those destinations are as well – you need to know the various strengths and weaknesses here too.
The Top Five
The top five outsourcing destinations around the world currently are as follows:
- India
- China
- Philippines
- Pakistan
- Brazil
What sets each of these nations apart? What are they best at? What are their weakest areas?
India ”“ India has developed into a powerhouse for outsourcing, and actually surpasses all other destinations by a significant amount. The country is capable of providing virtually any type of business process outsourcing solution necessary, and the high number of English speakers in India is also a benefit. There are very few weaknesses in the Indian outsourcing market.
China – China is an emerging outsourcing provider, but one that any company in need should consider. The primary benefit of outsourcing to China is the lower cost here, but there are also considerable numbers of English speakers. Technology outsourcing is a primary factor. The government scrutiny and secretiveness are both cons here, though.
Philippines – The Philippines has long held a rank in the top five global outsourcing destinations, and is actually second to India (albeit a distant second). The Philippines provides outsourcing solutions for technology projects, data entry and even graphic design solutions. The language barrier is the most significant drawback to outsourcing in the Philippines.
Pakistan – Pakistan is a recent entry into the top five outsourcing destinations, and it shares many of the same qualities as India, including a very broad selection of outsourcing solutions. However, there are fewer strong English speakers here, and more high-risk outsourcing companies.
Brazil – Brazil is a high profile global outsourcing destination with a variety of different service providers. There are plenty of English speakers in the country, and many in the US especially appreciate the fact that the time difference is not as great as it is with the other nations in the top five list (for some US states, there is no time difference at all).
Will these nations remain in the top five for a long period? That’s impossible to say, although India’s position is all but guaranteed. The other four slots will change over time, as different countries improve their technology infrastructure and begin taking advantage of the growing global market. Regardless, offshoring is here to stay, and it will only become more prevalent.
– Data Czar @ DEO
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