Outsourcing Location Analysis: An Assessment of Alternative Locations to India
Claudio Altini, Managing Director, BPO, Europe & Asia
Vivek Nijhon, Head of Global Sourcing
As organisations outsource an ever-greater number of services, offshore locations for service delivery beyond India are increasingly of interest to buyers. There are numerous drivers for this requirement, such as spreading risk, in terms of cost inflation or disaster recovery for example, or to access additional technical or language skills.
To support this interest, EquaTerra has carried out research for nine outsourcing locations considered most appropriate for evaluation as alternatives to India: China, Egypt, the Philippines, Poland, Malaysia, Brazil, South Africa, Sri Lanka and Indonesia. These were shortlisted from an initial list of 40 leading outsourcing countries using criteria including wage levels, inflation rates and English speaking capabilities as well as, importantly, the insights of EquaTerra advisors, who were able to add further depth to the analysis as a result of their experiences, views and expertise relating to these locations.
Our findings are not intended to replace existing market reports on location analysis data. Instead, the intention is to demonstrate how EquaTerra is able to combine its location expertise with location data to create recommendations which can be tailored to the specific needs of an organisation – different locations will be most appropriate for different organisations.
The Philippines and Poland were found to currently offer best alternative outsourcing locations to India, with China becoming a leading location for BPO and ITO service provision in the next three to five years. Chinese investment in infrastructure, education and its general business friendliness and predisposition to the outsourcing industry further strengthen their offering.
For detailing of the methodology and further findings, read the the full article Outsourcing Location Analysis 2011.
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