Business Process Outsourcing News and Information

Analysts believe that by 2015 some 4 million white collars jobs from US alone will be outsourced to other countries. The number is more or less 350,000 today. So, when the shift is inevitable, the next question that arise is, which countries will offer an outsourcer with best of services. I got a report from EDS (Electronic Data System) which is a sister wing of A.T. Kearney. The report has provided top level assessment of seven countries that are at present providing the best alternatives for US companies.

India: The country has many blue league universities; top notch amongst them is Indian Institute of Technology which is regarded as one of world's best. India every year shells out more than 75,000 IT graduates and 2 million English speaking graduates every year. On average salaries range from $5,000 to $12,000 (technical) and $3,500 to $7,500 (non technical). That's par annum, stupid.

 
Philippines: It's no less than India. Each year 380,000 English speaking graduates come out of colleges. The country is also culturally close to US. Labor costs a bit higher than India. $5,000 to $10,000 for techies and $3,000 to $8,000 for non-techies. Government is giving incentives on export taxes, fees, dues and licenses to companies to set up outsourcing centers in its IT parks. Photo: Philippines Tourism.

Russia: Though not many speak good English but Russia carves its niche on the high end of software technology outsourcing. Major technical centers are in Moscow, Novosbirisk and Petersburg.

China: HSBC and Microsoft are its showcasing outsourcing client. No manufacturing stupid. Transaction processing, maintenance and low-end software development are its niche. More than 50,000 tech graduates come out of college every year many of whom migrate to west.

Canada: US nearshore alternative. IT salaries range from $27,000 to $55,000 on average. Very little political risk. NAFTA gives free trade markets for IT services. The infrastructure is better than other outsourcing alternative.

Mexico: Mexico's niche is its millions of Spanish speakers. Labor cost is 50% cheaper than US, overall infrastructure however is a matter of concern. Big names set up centers include AOL Times Warner, General Motors and IBM. Major technical centers are Monterey and Tjuana.

Ireland: A smaller country with smaller number of annual graduates. Out of 34,000 graduates 5,000 are techies. It salaries range from $27,000 to $35,000. Majors companies include Intel, Dell and Microsoft. Expertise lies in software development, call centers and European shared-services centers.