Monday, January 02, 2006

Looking for new outsourcing destinations

As we know India and China are the preferred outsourcing destinations at the present. But then the rising costs in India and legal problems in China has forced us to find new dsetinations for outsourcing.Poland is coming up in Eastern European region, then there is Russia and former Yugoslavia.In the Asian region, I believe Nepal, Sri Lanka would be a great destinations because of the lower costs, sizeable English speaking population and availability of trained manpower.Although the talent pool is not comparable to India and China, Nepal and Srilanka can be a good option for small scale projects.

Nepal has problems with infrastructure and stability.Recently the King took over the government and shut down internet access for couple of days, even mobile phones were down.Then there is the Maoist insurgency which has forced many international projects to leave the country.Sri Lanka has the issue of Tamil insurgency.

What I am trying to get here is, to start a discussion on new outsourcing destination, outside the obvious.

28 Comments:

Blogger chitragupta sinha said...

India is still the next hot
destination for outsourcing and I don't see that the cost is rising for Outsourcing suport in India. I find many of the big league corporates & small and mid size establishments give their first preference to India as far as outsourcing is concerned with cost saving.

12:00 PM  
Blogger Bhumika Ghimire said...

In terms of cost, India is a good bet if you are outsourcing the job from USA, Canada UK etc.But if u compare India and Nepal, Nepal is better bet(purely cost terms).
Just look at the value of US dollar in Nepali rupees and Indian rupees..it become quite clear.
I agree with u that India is favoured by many big companies, that is because of India's track record, Nepal still has long way to go before they build that kind of clout.But still, looking for new destination is a smart thing to do because India cannot hold this forever.It is an economical reality.

4:29 PM  
Anonymous etechsupport said...

Regardless of what the future holds for the outsourcing industry, India will continue to be a compelling hub for IT work. It's a tried and tested destination for outsourcing as far as countries like UK, USA and Canada are concerned whereas other countries like Romania and Yogoslavia are still upcoming. It would take some time for these countries to match up with the Indian outsourcing industry.

5:30 PM  
Blogger chitragupta sinha said...

I quite dont understand how you are considering Nepal as a good platform. I think the political situation in Nepal requires a democratic, stable, and participatory system that should respects everyone’s human rights first to avoid violent conflict and bring opportunity for peaceful resolution.How people will dare to outsource their project to a country in such environment.

5:38 PM  
Anonymous Anonymous said...

You may think Nepal is a good option on the cost basis but what about the essential factors like quality of service.I don't think Nepal has the infrastructure or corporate environment to start an outsourcing business. India may be a little costlier option but you can be satisfied that you are getting a better service.India is a growing IT country & can better cope with outsourcing needs.

12:44 PM  
Blogger Bhumika Ghimire said...

Security concerns, infrastructure issues aside, I believe that the quality of professionals produced by Universities in Nepal is in no way inferior to that in India or China.I am saying this from personal experience. The only thing Nepal has to its disadvantage is its image as a non-business tourism destination which is now marred by insurgency, Himalayan wonderland which is far from the advances in technology.

Serving Minds, a call center in Kathmandu, relaunched in 2003 has managed to build impressive client list( Bank of America, Sprint, Cingular are among them).As an optimist I can see that slowly but steadily Nepal will be able to present itself as an opportunity worth exploring.

4:01 PM  
Anonymous Anonymous said...

so far india is concerned, its doing well. but in the name of business there are many cheaters. and i hate such people. stop cheating first.

12:37 PM  
Anonymous Anonymous said...

hey, don't forget about the PHILIPPINES. its one of the greatest destination for outsourcing anywhere in the world. some folks there are bi-lingual and has a good grammar.

they have neutral accent which is a standard accent for a broadcaster.

guess what, the cost in the PHILIPPINES is as much as india.

so, what do you say about it.

5:34 AM  
Anonymous Technator said...

I certainly believe that India is a great services destination and it would be difficult any other country to beat the advantage it has in terms of great institutions and infrastructure, which is being build on a grand scale.

7:39 AM  
Blogger Chandan said...

Not only call centers but back office works like making transcription and softwares are done in Nepal. Preparing trancription is a booming back office work. The emerging software companies in Nepal have also made softwares for US companies too. Nepal can be a good alternative (talking about "
outside the obvious").

6:59 AM  
Anonymous rio said...

Yes, China and India is the preferred outsourcing destinations, but also consider Philippines. Maybe Philippines may not be the first place you think of when looking for an expert supplier, but the country has forged increasing links with the UK over the past few years. But Philippine companies have a unique approach to service, with a "can do" ethos and an excellent track-record in outsourcings. One of the advantages is the low cost of employing educated and skilled people.

12:46 PM  
Anonymous Anonymous said...

The Philippines is a good destination given the right partner company if needed. One good thing about the Philippines is its fluency in the English language and the skills it has generated throughout the years.

What is best right now is the initiative being pushed by the Philippine government when it comes to ICT. Although infrastructure is still something to work on, local Philippine companies have a very good chance in becoming one of the bigger players in the next few years.

7:20 PM  
Blogger runit said...

WHY NEPAL COULD BE A FAVOURABLE DESTINATION FOR OURSOURCING?
1.CHEAP MANPOWER
2.THE FACT THAT OUTSOURCING IN INDIA HAS REACHED A PEAK SUCH THAT IT IS COSTLY TO OUTSOURCE IN INDIA...THOUGH INDIA HAS EARNED A REPUTATION BUT IT CANNOT HOLD ON TO OURSOURCING FOREVER..
3.NEPAL'S IT SECTOR HAS BEEN UNEXPLOITED..AND COMPARED TO SRILANKA WHICH COULD BE THE OTHER DESTINATION..NEPAL'S GOT A HEALTHIER POLITICAL ENVIRONMENT AS BHUMIKA MENTIONED.
4.GROWING NUMBER OF ENGLISH SPEAKING YOUTHS IN NEPAL
5.STRATEGICALLY FAVORABLE TIME ZONES ALLOWING US TO DO OUR WORK DURING THE NON OFFICE HOURS OF MOST OF OUR CUSTOMERS THUS BEING ABLE TO GIVE THEM THE BEST SERVICES

1:32 PM  
Anonymous AlarSoft said...

I think Ukraine is a most appropriate place for outsourcing. Since outsourcing to Ukraine allows to minimize project costs and still to get the highest quality and excellent performance. Cost-effectiveness is achieved through competitively low prices for services of IT specialists in Ukraine.

8:43 PM  
Blogger arasa said...

TRY CHARLKEN dot COM. IT IS A SPLENDID EXAMPLE OF OUTSOURCING SERVICES WAY IN AFRICA.
VERY HIGH EDUCATION STANDARDS, PLEASANT ACCENTS, HIGH WORK ETHIC, HIGH IT & TCHNICAL PROFICIENCY

3:19 PM  
Anonymous Anonymous said...

I am completely sure that Ukraine is now becoming one of the best destinations of outsourcing both IT and DE services. Especially now when the number of english-speaking people there is growing rapidly, when the IT specialists are of high level and the prices are still much more cost-effective in comparison with India, Phillipines etc.

So better look towards UKRAINE!

7:13 PM  
Anonymous Anonymous said...

Ukraine is the right place to outsource software development or even any other projects. We have been collaborating for 1+ year with an Ukrainian branch of the USA Engineering Institute. We are happy with appropriate results for budget purposes, efficient and professional hired team, managers are responsive to our needs as a business client, prompt with communications. We are on the same wavelength. At last I like this country and its folks though I've visited just a couple regions of this lovely country. Before we've outsourced to India, China.

9:10 PM  
Blogger Nguyễn Ngọc Anh said...

Vietnam is another option and will be one of the best destinations of IT outsourcing. Since outsourcing to Vietnam allows to minimize project costs by employing the large number of educated and skilled people with low cost.

12:29 PM  
Anonymous Anonymous said...

A lot of comments that have been left here are about the Philippines being one of the more wiser choice as a destination for Business Outsourcing. I'd like to back up those guys, and join them in saying ... that the Philippines is DEFINITELY one of the best choices, if you're planning of entrusting your businesses off shore. The Philippines has been known to be one best english speaking countries, this corner of the world. The country has ample talent pool that can compete even with the best in the world. Businesses like so are popping like mushrooms in the Philippines right now. It only goes to show that the people here are doing something right. It's happening in the Philippines now, and it will only grow in the next few years

11:26 PM  
Anonymous Anonymous said...

EAST OR WEST INDIA IS THE BEST......US PEOPLE WOULD NOT UNDERSTAND CHING CHANG CHU IN CHINA..... AFRICANS WILL EAT US PEOPLE ON CALLS ONLY AS THEY ARE FROM THE LAND OF WILD ANIMALS....FILIPINOS THEY ARE RUDE SOME TIMES I JUST SPOKE TO ONEOF THE REPRESENTATIVES.......SO MY DEAR FRIEND STOP THIS FORUM THERE I SNOTHING TO DISCUSS........OUTSOURCE ONLY TO INDIA

4:36 PM  
Anonymous Anonymous said...

Why are we all forgetting about the continent next door, AFRICA!!!!
Granted, Africa has had it's problems but looking closely, there are developments that are to be lauded.
In South Africa, The UK is now focusing all it's recruitment drive for outsourcing business there. Not to forget they do have the infrastructure needed.
Then there is Kenya, another location rapidly coming up. The government has in recent times enacted legislation that will favor ICT enormously. Then the infrastructure is also growing at a very steady rate. Apart from the post election jitters, they are a relatively stable location, and are also upgrading to a national fiber optic backbone.
YES! Africa is coming up!!

12:37 PM  
Blogger john said...

I happened upon this thread and thought it would be a good opportunity to present our "oconomy" pages. This is not a commercial offer or anything spammy, I just wanted to let this community know that the company I work for (the largest of the online outsourcing IT job boards) has let us open up their database and show real-time outsourcing stats by skill and by country. You can check out Country Outsourcing Growth Stats. Please do let me know if anyone has specific info they're looking to see and I'll try and dig it up for you.

12:14 AM  
Blogger antoineboni said...

Hi, all this is very interesting. But could it be possible that corporations in America are now outsourcing to Americans in their homes. The media say that Home Sourcing is on the rise. I guess we'll see!

8:03 PM  
Anonymous Levan lepsveridze said...

Hello. I am form Tbilisi, capital of Georgia and I must say Georgia is the best place for outsourcing.

Located at the dividing line between Europe and Asia, Georgia is a country with pro European orientation. Average level of education in Georgia is quite high, especially when it comes to knowledge of foreign languages. Because of specificity of Georgian language, Georgians have much better pronunciation of European languages than Indians or Chinese do. Also, work force is reasonably cheap here. (because of high unemployment rate)

I'd bee very happy to have some further negotiations about this theme. Because, I am searching for people who would be interested in outsourcing in Georgia. Please, do not hesitate to contact me if you have some interest in it.

Email: contact@iris.ge

9:04 PM  
Blogger screwer said...

I certainly agree with Bhumika and some more guys out here that Nepal is one of the best place tostart a venture and bring in the foreign investment in the country.

In terms of conversion of the Dollar in NEP Rupee, its the higher in the world.

The labour is so well cheap because of the rising unemployment in the youths and the other economic factors.

The life style of the youths of Nepal are no lesser than any youths there in Singapore or Hongkong.So the average youth always look for money and no other industry can provide a job to non graduates rather than a call center.

Majority of Youths speak english language as english music has influenced the country so well.

Jobs in Nepal are basically only limited to Banks and some well known domestic industries in the food and steel industries.

The only problem is the infrastructure and tax system in Nepal which has to be streamlined.And what i think if any big corporates and some huge pool of money is invested in the country to start a real serious venture either to start a third party campaign or their own product, its certainly will work.Its all about twisting the government and making the work done.

Infact, its not that what it looks from the outer part, the condition is very favorable above the hindraces.

11:07 PM  
Anonymous Magdalena Szarafin said...

Well, there are many alternative offshoring destinations to the traditional ones. I have latest written a short article about offshoring (or: in this special case: rather neashoring) of operations to Nicaragua:
US's nearhore destinations: It's time for Nicaragua
eTelecare Global Solutions, a US provider of BPO solutions offering customer care, sales, technical support and back office services have decided to open their teleservices center in Managua, Nicaragua. That was for good reasons: quality of human capital, good infrastructure and supporting foreign investors by the government.

Magdalena Szarafin
http://www.szarafin.info

11:56 PM  
Anonymous Hank said...

I recommend philippines, it seems theyr'e the top outsourcing providers as far as i know.
As for the whole of Asia, they're also on the top list for fluency in english.

1:42 AM  
Blogger Thanh Nguyen - CEO at 8xSolutions Inc. said...

Vietnam is NOT a bad choice. Vietnam will be a high quality software outsourcing

8x Solutions Inc. is a Vietnam-based software outsourcing company that offers offshore, outsourcing services on Website Design & Development, IT consulting, Custom Software Development in .NET and PHP Techonology, and Testing services.

Please visit our website at http://www.8xSolutions.com for more details

6:27 PM  

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