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By Ericka Chickowski on 2009-03-23
By Ericka Chickowski
India is home to the most mature IT outsourcing companies of all offshore host countries, but no place is perfect. Indian outsourcing firms may not suit a company due to rising costs as the Indian market matures, culture and language issues, and even time zone issues. And some enterprises are looking for a way to diversify their sourcing portfolios.
The following ten countries are hotspots of ATI, or alternatives to India. This list is based on our conversations with Frank Casale, CEO of the Outsourcing Institute, and Allen Weinberg, principal and North American leader of McKinsey & Company’s Outsourcing and Offshoring Practice, as well as the recent report, “Gartner's 30 Leading Locations for Offshore Services.”
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- Midwestern U.S.
Onshore outsourcing may be the way to go in today’s political and economic climate. - Midwestern U.S.
Strengths: Public relations, culture and language compatibility, infrastructure, North American proximity
Weaknesses: Cost - Canada
Nearshore markets such as Canada are also another attractive option. - Canada
Strengths: culture and language compatibility, infrastructure, North American proximity
Weaknesses: Cost - Singapore
One of the most mature IT outsourcing countries in the bustling Southeast Asian market. - Singapore
Strengths: Political and economic climate, infrastructure
Weaknesses: Cost, time zone difficulties - Brazil
This nearshore option is heating up as a business process outsourcing destination. - Brazil
Strengths: Cultural compatibility, infrastructure, North American proximity
Weaknesses: Educational system, security and privacy - Argentina
Another strong contender in South America, Argentina boasts a strong contingent of engineers. - Argentina
Strengths: Cost, skilled labor pool, North American proximity
Weaknesses: Political and economic climate - The Philippines
The Philippines is known for strong BPO and call center offerings. - The Philippines
Strengths: Cost, language skills, cultural compatibility
Weaknesses: Security and privacy, political and economic climate - China
China has become a viable sourcing country and is poised for growth. - China
Strengths: Lower costs, skilled labor pool
Weaknesses:Security and privacy, political and economic climate, language skills - Egypt
Egypt is leading the charge in Africa’s bid to become the newest IT outsourcing up-and-comer. - Egypt
Strengths: Cost, European proximity
Weaknesses: Infrastructure, political and economic climate - Poland
Poland offers good opportunities for companies with a strong European presence looking for affordable partners in close proximity. - Poland
Strengths: Skilled labor pool, European proximity, political and economic climate
Weaknesses: Inadequate government support and subsidies.
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