Where in Asia? Top 5 Countries for Outsourcing
When trying to find solutions to keep a business running at a more cost-effective rate, a company will often choose to start subcontracting certain tasks to another firm.
This process, known as outsourcing or offshoring, achieves two goals at the same time.
First, the employer gains the manpower needed without having to hire a lot of people.
Second, a person or group of people earns badly-needed cash.
Over the last few years, studies have shown that Asia has become the top spot for business process outsourcing.
Countries like India, China, and the Philippines are ahead of the pack, as stated in Tholons' most recent listing of the top 100 outsourcing cities.
In fact, of the top ten on the list, only two destinations are in Europe; the rest are either in India or the Philippines.
In outsourcing, choosing the location and which company to work with can actually have a significant long-term impact on the company's operations.
Satisfied clients may continue to stick with the outsourcing firm for a long time.
So which countries should you keep an eye on and consider for jobs you'll want to offshore? One survey has pegged India as the overall best overall choice for outsourcing.
Its large population, estimated to have over 480 million people ages 25 to 54, provides a big pool for any IT outsourcing firm to tap into.
However, the biggest barrier to India's growth in the BPO industry is communication.
The very obvious accent often makes them difficult to understand.
In addition, the increase in Indians' minimum wage means its cost competitiveness has gone down, relative to other countries.
There is also a potential lack of qualified people, leading to companies eventually losing clients.
The same Tholons list mentioned earlier ranks the Philippine city of Manila as the second overall outsourcing destination, while the country as a whole ranks seventh.
Its cost competitiveness is higher than that of India's and China's, however there is again a possible lack of qualified people.
When it comes to resources and general skills, India and China win out again.
Of all the Asian countries, however, the Philippines seem to have an affinity for Western culture, leading to better-sounding spoken English.
This not only makes it easier for foreign clients to understand their speech, but leads to an easier and stronger connection through language.
As mentioned earlier, don't count China out.
Its popularity in the business process outsourcing industry is growing as well, with companies in its IT sector quickly developing.
According to SourcingLine's ranking, it's just above the Philippines on the list.
The main advantage in outsourcing to China is that if clients have headquarters in Asia, there's no need to worry about a language barrier.
Like India, however, the English language capability of Chinese workers tends to be less than satisfactory.
China also doesn't have good protection when it comes to intellectual property, so products can easily be duplicated.
Malaysia is another popular destination for outsourcing, particularly for those new to the business.
It's known for cost-effective and value-oriented service.
It focuses not just on BPO, but also IT consulting and systems integration.
However, its people skills still need some work.
Last but not the least is Thailand - again located in Southeast Asia.
Deemed to be one of the most financially attractive countries, its low costs and potential for high returns can be irresistible to businessmen the world over.
Even though this country lacks innovative workers who stick with long-term projects, they still have potential, for IT outsourcing or something else entirely.
This process, known as outsourcing or offshoring, achieves two goals at the same time.
First, the employer gains the manpower needed without having to hire a lot of people.
Second, a person or group of people earns badly-needed cash.
Over the last few years, studies have shown that Asia has become the top spot for business process outsourcing.
Countries like India, China, and the Philippines are ahead of the pack, as stated in Tholons' most recent listing of the top 100 outsourcing cities.
In fact, of the top ten on the list, only two destinations are in Europe; the rest are either in India or the Philippines.
In outsourcing, choosing the location and which company to work with can actually have a significant long-term impact on the company's operations.
Satisfied clients may continue to stick with the outsourcing firm for a long time.
So which countries should you keep an eye on and consider for jobs you'll want to offshore? One survey has pegged India as the overall best overall choice for outsourcing.
Its large population, estimated to have over 480 million people ages 25 to 54, provides a big pool for any IT outsourcing firm to tap into.
However, the biggest barrier to India's growth in the BPO industry is communication.
The very obvious accent often makes them difficult to understand.
In addition, the increase in Indians' minimum wage means its cost competitiveness has gone down, relative to other countries.
There is also a potential lack of qualified people, leading to companies eventually losing clients.
The same Tholons list mentioned earlier ranks the Philippine city of Manila as the second overall outsourcing destination, while the country as a whole ranks seventh.
Its cost competitiveness is higher than that of India's and China's, however there is again a possible lack of qualified people.
When it comes to resources and general skills, India and China win out again.
Of all the Asian countries, however, the Philippines seem to have an affinity for Western culture, leading to better-sounding spoken English.
This not only makes it easier for foreign clients to understand their speech, but leads to an easier and stronger connection through language.
As mentioned earlier, don't count China out.
Its popularity in the business process outsourcing industry is growing as well, with companies in its IT sector quickly developing.
According to SourcingLine's ranking, it's just above the Philippines on the list.
The main advantage in outsourcing to China is that if clients have headquarters in Asia, there's no need to worry about a language barrier.
Like India, however, the English language capability of Chinese workers tends to be less than satisfactory.
China also doesn't have good protection when it comes to intellectual property, so products can easily be duplicated.
Malaysia is another popular destination for outsourcing, particularly for those new to the business.
It's known for cost-effective and value-oriented service.
It focuses not just on BPO, but also IT consulting and systems integration.
However, its people skills still need some work.
Last but not the least is Thailand - again located in Southeast Asia.
Deemed to be one of the most financially attractive countries, its low costs and potential for high returns can be irresistible to businessmen the world over.
Even though this country lacks innovative workers who stick with long-term projects, they still have potential, for IT outsourcing or something else entirely.