Top Countries for Global Sourcing
India is not the only destination for global sourcing. Countries such as Argentina, Ireland, and Singapore have gained popularity when it comes to global sourcing. Choosing the right location is vital when sending work overseas. This decision can make the difference of whether the global sourcing arrangement succeeds or fails.
Gartner recently released a list of the top 30 countries for global sourcing. The countries were evaluated based on 10 key criteria, which included language, local government support, infrastructure, labor pool, education system, political and economic environment, cost, data security and privacy, cultural compatibility and global and legal maturity. Gartner then organized the top 30 list by separating it into regions. The highest scoring countries based on Gartner’s research were as follows:
Americas: Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Uruguay
Canada received the highest score in 7 of the 10 categories, among the countries in the Americas. However, Latin American countries have become more attractive to U.S. companies because of the demand for Spanish speaking skills. There is a major concern about intellectual property and data security and privacy within this region.
Asia/Pacific: Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka and Vietnam
China, India and Singapore all showed strong government support of IT services for global sourcing. Australia, New Zealand and Singapore are considered higher-cost locations, but these countries did receive high ratings in the categories of political and economic environment, cultural compatibility, global and legal maturity and data and intellectual property security and privacy. Pakistan, the Philippines, Sri Lanka and Vietnam did poorly in the political and economic environment category as many outsourcing companies are concerned about this issue.
Europe, the Middle East and Africa: The Czech Republic, Hungary, Ireland, Israel, Northern Ireland, Poland, Romania, Russia, Slovakia, South Africa, Spain, Turkey and Ukraine
Ireland, Israel, Northern Ireland and South Africa did well in the language category as there are a large number of quality English-language speakers in these countries. Some of the other countries in the region such as the Czech Republic, Slovakia, Hungary, Poland and Romania received additional recognition for alternative language skills, which is of benefit to European buyers. The biggest concern in this region is government support. Also, according to Gartner, few countries within this region, except for Russia, offer an adequate selection of local service providers looking to sell their capabilities outside their own country.
As your company embarks on the journey of outsourcing part of your IT services to a global sourcing provider, there are many factors that need to be considered before choosing which location is most appropriate for your organization. A&E Consulting can help you choose the right global sourcing partner and will assist you in establishing the business relationship. In addition, we will manage the first outsourced project to make the transition as smooth as possible.
Tags: Gartner top 30 countries, global sourcing, global sourcing locations