Outsourcing: Way of life for modern business

Recent times have brought the term offshore outsourcing into the mainstream consciousness. However, outsourcing has been a very popular trend, for quite some time now. Outsourcing can be a great way to save money, while simultaneously getting high-quality work done. Location attractiveness is a very important factor for Business Process Outsourcing (BPO), as it determines the most preferable location for your outsourcing needs. A range of factors is to be pre-determined while choosing the location for outsourcing: the overall skill of the population, labour cost, technology and infrastructure capabilities, whether communication and business conduction are easier in that location, how the state of the country could affect your business team, among others.

The top 5 destinations for Business Outsourcing are:

India: India has been a pioneer in the domain of outsourcing and still remains the leading outsourcing destination. A range of advantages comes into play while offshoring to India, including English language proficiency, making the communication process very easy, cultural understandings, the political environment of the company and telecommunication system of the company is very strong making it easy to handover projects. So this destination is generally preferred for complex tasks which require a high level of skills. Even for simple tasks, India is the first country that comes to mind; offshoring to India also has a range of added advantages for businesses, such as the services here are extremely cheaper than most of the developed countries. The availability of cheap labour, time zone advantages, high-quality services and a stable government.


China: China is emerging to be one of the best locations for IT outsourcing as it is the home to many of the fastest growing IT companies and the country is producing around 4.7 million tech graduates every year. It can be the top offshoring country in the near future as the economy of China is booming, which brings along great economic capacity and advancement of a large, skilled technological environment. But the difficulties that come into play while offshoring to China includes the language barrier, as only 10 million of 1.3 billion residents of China speak English, making it really difficult to communicate overseas. The other difficulty is that China is known to have lax enforcement of Intellectual Property laws.


Philippines: Though the country is much smaller than India in terms of land size, it is still often compared to India when it comes to outsourcing, because of the cheaper labour rates making it the other money-saving destination for offshoring simple tasks. This country has an added advantage to other Asian countries, which is their familiarity with the western culture and English language. But it is not the top outsourcing destination because of its challenging time-zone difference and difficult environmental conditions. There are around 20 storms every year in the Philippines. As a result, the country is inundated with power interruptions in flood-prone areas.


Mexico: It is one of the best business destinations and is desirable by many U.S business companies for outsourcing because of its key asset, which is it being Nearshore or its location proximity, as compared to various other countries Mexico is located in the proximal distance to the U.S and also the difference of time-zones is very less as compared to India or Philippines. Though English is not the main language in the country, more than 90% of the Mexican people can speak average level English which is enough for communication. Around 1.2 lakhs of tech graduates are produced every year making the country very suitable for IT offshoring with this wide talent pool. With advantages, there comes a few disadvantages too, Mexican culture is very “laid back” so often individuals working for the outsourcing firms adopt a more casual approach to work, not focusing entirely on what needs to be done. The key point to keep in mind while working with Mexicans is that the instructions and expectations need to be communicated in a very clear and precise manner.


Australia: Australia is an attractive outsourcing destination and is desirable for offshoring because of many reasons. Primary reasons among those include cultural compatibility, language proficiency, infrastructure, data and intellectual property, globalization and legal maturity, political and economic environment but it is not the most cost-effective option because of the more mature and developed audience.
In order to select the best outsourcing destination, one must be very clear about their needs and the tasks they desire to accomplish. Before selecting the country, determine the work that you need to outsource as the choice of the best location ultimately depends on one’s needs. Then get complete outsourcing related details of the company, get ready to handle challenges and if your choice is one of these five countries then be assured that your tasks and operations are in good hands.