Top Outsourcing Countries - 2010

India is the leading destination for call center outsourcing. The offshore outsourcing industry started in India and it has be able to grow the IT and BPO export sector to $47 billion and capture more than half the offshore outsourcing industry. That is not to say that India does not have challenges or is the best location for every offshore outsourcing effort, but it has an unparalleled history and size.

The Americas and Europe are the largest customers for the Indian outsourcing industry and account for 60% and 31% respectively of IT and BPO exports. The largest vertical sectors are financial services (41%), high-tech/ telecom (20%), manufacturing (17%) and retail (8%). In 2009 the IT and BPO export industries employed about 2.2 million people.

IT and BPO services outsourcing first started in India in the mid 1980s. The large, English speaking, low-cost workforce was the main attraction. The industry grew rapidly through the 1990s aided by the dot com boom and IT upgrades to prepare for potential Y2K bugs. The 2000s saw similar growth with work moving to India in down cycles to help companies cut costs and in boom times to capitalize on the readily available talent.

The 2008-2009 global recession has had a negative impact on outsourcing growth in India, but the sector is experiencing a turn-around in 2010. Many US and European companies are still cautions about the speed or staying power of the 2010 economic recovery and thus are looking to maintain a low cost base in locations such as India. We expect IT and BPO outsourcing in India to bounce back to double digit growth rates in 2010.

The global services market is highly dynamic environment and selecting the best outsourcing location for your operation can have a significant long-term impact. Sourcing Line has compiled the most comprehensive online database of outsourcing country statistics to aid your decision making. Each country has been scored across dozens of key statistics which fall into three broad areas of Cost Competitiveness, Resources & Skills, and Business & Economic Environment.


India, ranked first
in our survey, provides the best mix of factors, but it is not a leader across all dimensions. It is still a highly cost competitive location, but recent wage inflation has impacted its position relative to other countries. India also has a massive resource and skill base, but educational challenges are impacting the skills of graduates and the business & economic environment can prove taxing. Other leaders in the survey include numerous other countries from Asia, but also Latin America and Europe.

Country World Rank Overall Index Cost Competitiveness Resources & Skills Business & Economic Environment
Rank Index Rank Index Rank Index
India 1 7 4 9.1 2 5.2 21 4.1
Malaysia 2 6.1 6 8.9 12 1.7 5 6.8
Philippines 3 5.8 7 8.7 5 2.1 19 4.5
Indonesia 4 5.7 3 9.4 21 1.2 22 4.1
Jordan 5 5.7 5 8.9 23 1 10 6.1
Thailand 6 5.6 9 8.6 22 1.1 8 6.4
Egypt 7 5.5 2 9.4 26 0.5 20 4.2
Pakistan 8 5.4 1 9.4 25 0.5 25 3.7
China 9 5.4 14 7.5 4 2.5 15 5.3
Bulgaria 10 5.4 11 8.1 13 1.6 13 5.4
Romania 11 5.3 13 7.6 11 1.7 11 6
Argentina 12 5.3 10 8.1 14 1.5 18 4.7
Ghana 13 5.2 8 8.6 24 0.5 17 4.8
Mexico 14 5.1 15 7.3 9 1.9 14 5.3
Poland 15 5.1 17 7.1 7 2 12 5.8
South Africa 16 5.1 16 7.2 17 1.4 4 6.8
Czech Republic 17 5 20 6.9 8 1.9 9 6.2
Vietnam 18 5 12 8.1 19 1.3 24 3.7
Hungary 19 5 21 6.7 10 1.9 7 6.6
Chile 20 4.9 19 6.9 20 1.2 6 6.7
Ukraine 21 4.6 18 7 18 1.3 23 4
United States 22 4.6 26 2.4 1 6.1 1 8.4
Russia 23 4.4 22 6.2 16 1.4 16 5.2
Canada 24 4.3 25 3.3 3 4.2 2 8
Israel 25 3.8 24 4 6 2.1 3 6.9
Brazil 26 3.1 23 4.9 15 1.4 26 0.9

Source: http://www.sourcingline.com/top-outsourcing-countries


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