More and more entrepreneurs understand the rationality and effectiveness of BPO. The worldwide spending for IT outsourcing services is $288 bn. Furthermore, software application development was the most common outsourced IT function in 2017. How can a company choose a proper BPO partner? Here are several points making the search for BPO destinations easier.
The survey conducted by A.T.Kearney, a leading global management consulting firm, describes the top competitors in the global outsourcing market. Having examined companies from 55 countries, the company analyzes their popularity according to several categories and ranks the top BPO destinations.
There are three categories for analysis: financial attractiveness, people and skills availability, business environment. Each of these categories divides into several dimensions. Financial attractiveness accounts for infrastructure, compensation, tax, and regulatory costs. The level of education, language proficiency, and cumulative services experience affect the skills and availability category. Hence, the main factors having an influence on the business environment include the economic and political risks, cultural adaptability, and level of intellectual property security.
Top Three Global BPO Destinations
Beside being the main categories influencing the Kearney’s best BPO destinations list, these factors may also assist an entrepreneur in the search for a professional BPO partner. As for the survey, India tops the rating. With a big pool of highly educated graduates and a good business environment, China takes the second place. Similarly, Malaysia is in the third position, as it can also provide cheap employees and a strong business environment.
The top 20 also includes Brazil, Mexico, the USA, and Egypt. However, each of these countries has got some characteristics that slower their movement up the list. These may include poor cost profile in the US, political turmoil in Egypt, and other factors.
Some countries have dropped drastically on the list. For example, Lithuania has moved from the 12th spot to the 27th. Likewise, Estonia appeared on the 33rd place, Tunisia got on the 38th, while Jordan dropped to 35th. Looking at these changes, many companies consider a rational alternative – business process outsourcing to Eastern European countries.
Top Eastern European BPO destinations
Eastern European countries prove to serve as trustworthy outsourcing partners. Providing skilled labor, they also appear to create new development possibilities and reduce costs. Such Eastern European countries as Ukraine, Poland, Belarus, Hungary, and Romania have proved to be leading BPO destinations.
Ukraine is one of the biggest and fastest growing European countries for software development services. With a big pool of skilled IT professionals and strong expertise in different spheres, this country is a strong performer in the global IT market. It hosts more than 100 R&D subsidiaries of international companies. Therefore, there are centers of such globally known companies as Microsoft, Apple, Boeing, Skype, IBM, eBay, Samsung Electronics, etc.
Ukraine is included in Gartner’s top 30 offshoring and outsourcing destinations. Besides, according to IT outsourcing news, this country tops the list of European IT-outsourcing centers. Furthermore, the best outsourcing providers, 12 IT companies from Ukraine are on the list of Global Outsourcing 100 2017.
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