2008 year in review: Offshoring
This year has seen India, China, Russia and Brazil continue to dominate the offshore location agenda, but it has also marked the rise of new outsourcing destinations.
Dec 24, 2008
This year has seen India, China, Russia and Brazil continue to dominate the offshore location agenda, but it has also marked the rise of new outsourcing destinations.
However, key questions remain as the industry heads into 2009, principally the effect that the credit crunch will have on offshore providers, and the extent to which the instability of a region may affect a company's choice of outsourcing destination.
A recent report from analyst firm Gartner looked at the credentials of 72 countries as offshore locations, and listed the top 30 destinations in 2008.
Evaluation factors included language skills, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy.
Gartner's Top 30 list by region was as follows: (Americas) Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Panama; (Asia/Pacific) Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam; and (Europe, Middle East and Africa) the Czech Republic, Egypt, Hungary, Ireland, Israel, Morocco, Poland, Romania, Russia, Slovakia, South Africa, Spain and Ukraine.
Gartner reported that Ukraine was the only country in EMEA to achieve a rating below 'good' in terms of cultural compatibility. But this may soon be challenged, according to a new industry group launched this year to promote outsourcing providers in Eastern Europe.
The Central and Eastern European Outsourcing Association (CEEOA) intends to pool resources from associated bodies based in the Baltics, Ukraine, Hungary, Bulgaria and Romania, in an effort to increase the volume and quality of service delivery in particular states.
The CEEOA claimed that it will work within the region to improve factors such as "international trade practice" and "modern business management competencies".
Gartner's 2008 advancing offshoring destinations, meanwhile, included Egypt, Morocco, Panama and Thailand. These were all newcomers to the Top 30, and displaced Northern Ireland, Sri Lanka, Turkey and Uruguay from their 2007 positions.
However, key questions remain as the industry heads into 2009, principally the effect that the credit crunch will have on offshore providers, and the extent to which the instability of a region may affect a company's choice of outsourcing destination.
A recent report from analyst firm Gartner looked at the credentials of 72 countries as offshore locations, and listed the top 30 destinations in 2008.
Evaluation factors included language skills, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy.
Gartner's Top 30 list by region was as follows: (Americas) Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Panama; (Asia/Pacific) Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam; and (Europe, Middle East and Africa) the Czech Republic, Egypt, Hungary, Ireland, Israel, Morocco, Poland, Romania, Russia, Slovakia, South Africa, Spain and Ukraine.
Gartner reported that Ukraine was the only country in EMEA to achieve a rating below 'good' in terms of cultural compatibility. But this may soon be challenged, according to a new industry group launched this year to promote outsourcing providers in Eastern Europe.
The Central and Eastern European Outsourcing Association (CEEOA) intends to pool resources from associated bodies based in the Baltics, Ukraine, Hungary, Bulgaria and Romania, in an effort to increase the volume and quality of service delivery in particular states.
The CEEOA claimed that it will work within the region to improve factors such as "international trade practice" and "modern business management competencies".
Gartner's 2008 advancing offshoring destinations, meanwhile, included Egypt, Morocco, Panama and Thailand. These were all newcomers to the Top 30, and displaced Northern Ireland, Sri Lanka, Turkey and Uruguay from their 2007 positions.