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Outsourcing Slideshow:
9 Alternatives to Indian Outsourcing

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 proximityWeaknesses: Cost

Canada

Nearshore markets such as Canada are also another attractive option.

Canada

Strengths: culture and language compatibility, infrastructure, North American proximityWeaknesses: 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 proximityWeaknesses: Political and economic climate

The Philippines

The Philippines is known for strong BPO and call center offerings.

The PhilippinesStrengths:

Cost, language skills, cultural compatibilityWeaknesses: 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 poolWeaknesses: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 proximityWeaknesses: 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 climateWeaknesses: Inadequate government support and subsidies.

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