The Best And Worst Places To Outsource: Asian Offshoring Countries Compared

Best and Worst place to outsourced

The Best And Worst Places To Outsource: Asian Offshoring Countries Compared

By now, most of us are aware that South Asia is a mecca for offshoring and outsourcing workers: Boasting largely stable infrastructure, low wages, and friendly, polite, educated people, there’s no denying that South Asia is an attractive place to do business. But, out of all the current offshoring heavyweights—India, China, the Philippines, and Sri Lanka—which country is the best pick? Does any of these nations in particular, strongly pull ahead where value (i.e, quality of service vs. cost of service) is concerned? Read on to find out:

India

Areas of expertise:

Communications (e.g. contact centers) and IT

Population:

1 billion

Strengths:

Established reputation as a provider of IT services and contact center services. Large talent pool and high percentage of English speakers. Favorable tax rates.

Weaknesses: Political and economic instability, including rapidly rising wages. Poor infrastructure, resulting in a high degree of technical failure among offshore service providers. High rates of competition which make finding skilled professionals difficult. Massive surges in employee turnover in large cities such as Mumbai and Bengaluru mean it’s hard to retain talent. Additionally, while many people speak English in India, a thick accent is common; this can present challenges in contact/call center environments.

China

Areas of expertise:

IT

Population:

1.3 billion

Strengths:

Established, highly educated IT talent base comprised largely of young professionals. Strong cultural work ethic and fairly reliable infrastructure.

Weaknesses: Like India, China has rapidly rising wages, intense competition, and a high rate of economic instability. Additionally, it has a lot of bureaucratic red tape to cut through and very high rates of intellectual property theft. English language skills are also poor in some areas.

The Philippines

Areas of expertise:

IT

Population:

77 million

Strengths:

Large IT talent pool (the Philippines produces over 15,000 technology students annually, meaning that it competes well with giants like India and China). Strong English language skills. Much lower wages than India or China. Cultural affinity with the US.

Weaknesses:

Poor infrastructure and political instability negatively impact reliability when outsourcing to the Philippines. Overall quality of education is lower than in India, China, or Sri Lanka.

Sri Lanka

Areas of expertise:

Communications (e.g. contact centers), IT, Finance and Accounting

Population:

20 million

Strengths:

Highly skilled, educated, and literate population (Sri Lanka boasts the highest literacy rate in South Asia, at 92%). All graduates are fluent in English and speak with a clear, neutral accent that is ideally suited to contact center work. Sri Lanka has low wages that are not experiencing significant inflation. Furthermore, there is little risk of intellectual property theft thanks to the country’s adherence to British Commercial Law principles and practices. There is less competition than within India or China and higher rates of employee retention. There is a reliable infrastructure consisting of multiple telecom operators, international submarine cables securing internet access, and 4G connectivity.

Weaknesses:

Less established as an IT hot spot than India or China. Sri Lanka’s smaller relative population means that there are less professionals to choose from than there are in larger South Asian nations.

 

The Verdict: Which Nation Should You Choose For Offshore Services?

All things considered, we believe that Sri Lanka offers the best value for those seeking offshore services. The robust Sri Lankan education system and modern infrastructure results in extremely high service quality while low, stable wages offer excellent cost incentives.

 



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