The GBPC has developed a leading-edge offering to provide clients with authoritative information on this trend. We work with companies to identify the best venue for outsourced operations and with governments and organizations to help develop stronger positions vis-à-vis competitors.
The field has changed considerably. In the late 1990s, classic outsourcing vendors invested in offshore information technology (IT) activities to benefit from lower costs and competent resources. By the early 2000s, IT offshoring was growing rapidly, driven largely by the emergence of local third-party providers, and business process outsourcing took off as the next-generation of offshoring. Today, knowledge process outsourcing is emerging as more complex tasks move offshore.
A handful of traditional outsourcing countries is being joined by a new set of entrants offering good business environments, large labor pools, and low costs. American companies are increasingly looking at locations in Latin America, particularly Argentina, Mexico, and Chile, because of similar time zones and proximity that allows for easier management. In Europe, established destinations such as the Czech Republic, Poland, and Hungary are seeing increased competition from lower-cost competitors in Eastern Europe and the Middle East. Asia is home to a large number of new hot spots. China has increasingly become the base to fulfill companies’ contact center needs in Asia, including hiring Chinese and Japanese workers, while Singapore and Malaysia are becoming disaster recovery sites for critical functions.
The GBPC has considerable thought leadership on outsourcing locations. Our Global Services Location Index, in particular, measures 50 countries according to their offshoring appeal in terms of business environment, people skills, and financial attractiveness. In addition, we help clients manage the broad array of options and their increasingly complex outsourcing needs by performing customized assessments of venues across the world. We tailor these assessments to include historic analysis, risk and cost sensitivities, specific job functions, and a host of other relevant measures. As part of the assessment, we develop scenarios to demonstrate how locations compare under different cost, skill, and risk situations.
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