Political and economic concerns prevent outsourcing to Pakistan
BENGALURU, India — India remains the global leader for offshore services, though China, Russia and Brazil are emerging as credible alternatives, a survey found.
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According to Gartner Inc., spending to offshore jobs is expected to grow by 40 percent in the U.S. and by 60 percent in Europe during 2008.
Ian Marriott, Gartner’s vice president of research, said its offshoring study measured ten criteria, including language, government support, infrastructure, education, political and economic environment, cultural compatibility as well as intellectual property protection.
Gartner found that the top locations in the Americas were Argentina, Brazil, Canada and Chile. Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka and Vietnam topped the Asia-Pacific.
In Europe, the top loccations were the Czech Republic, Hungary, Ireland and Israel.
Though China is India’s biggest challenger in terms of its ability to scale, China fell short in the survey due to language skills. Still, China, India and Singapore showed strong government support for promoting offshoring services. Political and economic concerns were greatest for companies seeking to ship jobs to Pakistan, the Philippines, Sri Lanka and Vietnam. Australia, New Zealand and Singapore led the way for political and economic stability along with cultural compatibility, legal maturity and IP rights.
“The aim of the study was not to rank each country, as every organization will have a different view of which factors are the most important for their needs, but rather help sourcing managers determine which locations are right for their organizations,” Marriott said.