Over the years offshore outsourcing has increased at a rapid pace due to the advancement in modern satellite and Internet technologies, better connectivity and a constant search for less expensive labor to cut costs and achieve competitive advantage. By outsourcing their back office business processes to less expensive nations like China, India, Philippines, Malaysia etc companies can cut costs, to concentrate on their core businesses and strengths, and ensure better customer satisfaction. A recent report suggests that US firms have saved nearly US$8 billion through outsourcing to developing nations like the Philippines.
There are many developing nations that act as offshore outsourcing destinations to developed nations. Some of the countries that can be considered as offshore outsourcing destinations are as follows:
Philippines
The Philippines’ key competitive advantage is the people. Philippines has a well-educated English speaking work force and stands out as the world’s third largest English speaking nation. The attitude, commitment, community, and education constitute the key competitive advantage especially in the front office operations such as customer service and sales. Government support and the IT infrastructure is a given.
The Philippines boasts of a huge pool of productive, trainable and multi-skilled labor force. Filipino Outsourcing companies such as AOV Outsourcing service only hire workers that are highly qualified for various outsourcing tasks. Major companies can benefit from the high quality of managers and IT staff that the Philippines can offer. The country is the 3rd largest English-speaking country in the world so Filipino workers have a high level of proficiency in English.
China
In recent years, China is rapidly emerging as one of the world’s leading suppliers of offshore software outsourcing services due to its incredible development rate. Although India is at the moments the world leader in software outsourcing industry, China aims to outpace India and become the next dominant competitor in software outsourcing. It is predicted that China will emerge as one of the top three countries for overseas software outsourcing between 2007 and 2010. Companies are already beginning to plan their offshore outsourcing strategies to take advantage of China’s emerging strength as an outsourcing center. This includes looking for ways to take advantage of the country’s current software strengths. Some estimates state that China outsourcing could rival India as the leading offshore IT services market as early as 2007.
India
One of the major players in the offshore outsourcing industry, India has a well educated, talented, low cost and English speaking workforce, excellent IT and networking infrastructure, a fairly stable political scenario, friendly laws and well laid taxes and quality certified software firms. The offshore outsourcing market in India is ever growing and has produced many success stories making India a popular offshore outsourcing destination for IT related and other BPO services.
Malaysia
Malaysia’s well-developed infrastructure, attractive business environment and strong government support makes it a rising alternative to India and China. The government’s positioning of Malaysia as a hub for services and technology innovation has resulted in a number of multinationals locating some of its global or regional operations in Malaysia. Malaysia has a relatively more stable political climate backed by consistent economic growth which makes it attractive for sensitive, high end applications in banking and finance.
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