Deteriorating cost advantages and improved labor quality are driving a dramatic shift in the geography of offshoring according to the latest edition of global management consulting firm A.T. Kearney’s Global Services Location Index (GSLI), a ranking of the most attractive offshoring destinations.
While India, China and Malaysia retain the top three spots they’ve occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.
The GSLI analyzes and ranks the top 50 countries worldwide
for locating outsourcing activities, including IT services and support, contact centers and back-office support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.
Established Central European countries including Poland, the Czech Republic, Hungary and Slovakia, once among the premier offshoring destinations for Western Europe companies, have fallen significantly due to a rapid increase in costs driven by both wage inflation and currency appreciation against the dollar. Meanwhile, low-cost countries in Southeast Asia and the Middle East made significant gains this year as the quality and availability of their labor forces improved. Egypt, Jordan and Vietnam ranked in the GSLI’s top 10 for the first time ever.
While India, China and Malaysia retain the top three spots they’ve occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.
The GSLI analyzes and ranks the top 50 countries worldwide
for locating outsourcing activities, including IT services and support, contact centers and back-office support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.
Established Central European countries including Poland, the Czech Republic, Hungary and Slovakia, once among the premier offshoring destinations for Western Europe companies, have fallen significantly due to a rapid increase in costs driven by both wage inflation and currency appreciation against the dollar. Meanwhile, low-cost countries in Southeast Asia and the Middle East made significant gains this year as the quality and availability of their labor forces improved. Egypt, Jordan and Vietnam ranked in the GSLI’s top 10 for the first time ever.
No comments:
Post a Comment