Outsourcing takes place when a company transfers the ownership of a business process to a third party and is different from contracting in which the company retains the control over the process. Over the years offshore outsourcing has increased at a major pace due to advancement in satellite and internet technologies, better connectivity and a constant search for cheaper labor to cut costs and beat competition.
Offshore outsourcing destinations There are many third world or developing nations that act as offshore outsourcing destinations to developed nations. Some of the countries that can be considered as offshore outsourcing destinations are as follows:
China China as of now is not considered as a major destination to outsource due to its inability to produce skilled work force and its limited English speaking youth. Not so well developed IT and networking infrastructure and no established formal procedures, processes and quality control systems are a few other reasons. But with the government concentrating in improving the communication and software infrastructure China can play a major role as an offshore outsourcing destination in the distant future.
Russia Russia looks promising with a low cost and well educated workforce, but the major problem being lack of English knowledge, low government/political stability and underdeveloped IT and networking infrastructure that act as its major rivals.
Philippines Considerably a potential offshore outsourcing destination, Philippines has a well educated English speaking work force and stands out as the world's third largest English speaking nation. But the major problem that Philippines is facing right now is its political instability and not so highly developed IT and networking infrastructure.
Brazil Brazil could have been a major player in the off shore outsourcing market owing to its cheap and efficient labor, had it not been for English - their major weakness. Brazilian workforce have major problems in conversing in English and other than that, Brazilian firms don't have built in relationships with US firms like other countries.
Mexico Mexico has major advantages in the offshore outsourcing market owing to its proximity to outsourcing giant US, but stands out only to the fact that its IT and networking infrastructure is not worth competing with nations like India.
Ireland Ireland looks promising as far as IT outsourcing is concerned owing to its potentially stable government, better and supportive laws and regulations, good IT and networking infrastructure and English speaking well educated youth which makes Ireland a good competitor in the offshore outsourcing market. The only problem being it has a costlier workforce compared to other countries.
Canada Canada being in proximity to US has almost similar time zones with well educated, computer literate and English speaking workforce. The only major disadvantage that Canada faces in comparison to other destinations is its high labor cost.
India One of the major players in the offshore outsourcing industry, India stands out from the rest in terms of well educated, talented, low cost and English speaking workforce, excellent IT and networking infrastructure, a fairly stable political scenario, friendly laws and well laid taxes and quality certified software firms. The offshore outsourcing market in India is ever growing and has produced many success stories making India a popular offshore outsourcing destination for IT related and other BPO services.
Eastern and Central Europe: Other eastern and central European nations such as Hungary, Czech Republic and Romania are also seen as good offshore outsourcing destinations for the near future. These countries have the advantage of educated, English speaking youth and are well in the competition.
South Africa A developing software infrastructure and an English speaking, low cost workforce makes South Africa a popular off shore outsourcing destination. But the major hurdle that comes in its way is the unavailability of skilled manpower.
Final Word Confused as to where to go? If you have decided to outsource then you need to take this next step no matter how hard it seems. But no matter which country you choose as your outsourcing destination, be sure to analyze its statistics in-depth, as choosing the right offshore outsourcing destination can go a long way in ensuring that you reap huge benefits in this boosting, fast paced economy.
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Outsourcing takes place when a company transfers the ownership of a business process to a third party and is different from contracting in which the company retains the control over the process. Over the years offshore outsourcing has increased at a major pace due to advancement in satellite and internet technologies, better connectivity and a constant search for cheaper labor to cut costs and beat competition.Offshore outsourcing destinations
There are many third world or developing nations that act as offshore outsourcing destinations to developed nations. Some of the countries that can be considered as offshore outsourcing destinations are as follows:
China
China as of now is not considered as a major destination to outsource due to its inability to produce skilled work force and its limited English speaking youth. Not so well developed IT and networking infrastructure and no established formal procedures, processes and quality control systems are a few other reasons. But with the government concentrating in improving the communication and software infrastructure China can play a major role as an offshore outsourcing destination in the distant future.
Russia
Russia looks promising with a low cost and well educated workforce, but the major problem being lack of English knowledge, low government/political stability and underdeveloped IT and networking infrastructure that act as its major rivals.
Philippines
Considerably a potential offshore outsourcing destination, Philippines has a well educated English speaking work force and stands out as the world's third largest English speaking nation. But the major problem that Philippines is facing right now is its political instability and not so highly developed IT and networking infrastructure.
Brazil
Brazil could have been a major player in the off shore outsourcing market owing to its cheap and efficient labor, had it not been for English - their major weakness. Brazilian workforce have major problems in conversing in English and other than that, Brazilian firms don't have built in relationships with US firms like other countries.
Mexico
Mexico has major advantages in the offshore outsourcing market owing to its proximity to outsourcing giant US, but stands out only to the fact that its IT and networking infrastructure is not worth competing with nations like India.
Ireland
Ireland looks promising as far as IT outsourcing is concerned owing to its potentially stable government, better and supportive laws and regulations, good IT and networking infrastructure and English speaking well educated youth which makes Ireland a good competitor in the offshore outsourcing market. The only problem being it has a costlier workforce compared to other countries.
Canada
Canada being in proximity to US has almost similar time zones with well educated, computer literate and English speaking workforce. The only major disadvantage that Canada faces in comparison to other destinations is its high labor cost.
India
One of the major players in the offshore outsourcing industry, India stands out from the rest in terms of well educated, talented, low cost and English speaking workforce, excellent IT and networking infrastructure, a fairly stable political scenario, friendly laws and well laid taxes and quality certified software firms. The offshore outsourcing market in India is ever growing and has produced many success stories making India a popular offshore outsourcing destination for IT related and other BPO services.
Eastern and Central Europe:
Other eastern and central European nations such as Hungary, Czech Republic and Romania are also seen as good offshore outsourcing destinations for the near future. These countries have the advantage of educated, English speaking youth and are well in the competition.
South Africa
A developing software infrastructure and an English speaking, low cost workforce makes South Africa a popular off shore outsourcing destination. But the major hurdle that comes in its way is the unavailability of skilled manpower.
Final Word
Confused as to where to go? If you have decided to outsource then you need to take this next step no matter how hard it seems. But no matter which country you choose as your outsourcing destination, be sure to analyze its statistics in-depth, as choosing the right offshore outsourcing destination can go a long way in ensuring that you reap huge benefits in this boosting, fast paced economy.
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