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Downturn sees rise of new offshore options
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Downturn sees rise of new offshore options
Sat, Dec 13:
The changing global economic scenario is heralding a preference for offshore destinations. According to a report released by Gartner, an information technology research agency, India and China remain undisputed leaders in this arena, but credible alternatives are emerging in all regions of the world.
According to the report, titled `30 leading locations for offshore services`, the dynamic nature of the offshoring market has seen the emergence of alternatives to the BRIC nations (Brazil, Russia, India, China).
"Countries such as Mexico, Poland and Vietnam have continued to strengthen their position, while others have forced their way into the top 30," said Ian Marriott, research vice-president at Gartner.
Marriott noted that these countries will try to wrest new opportunities arising out of the economic slowdown, as many organisations are now focussing on cost optimisation.
The report doesn`t rank countries on the basis of their attractiveness; it just lists the top 30 offshore destinations by region.
The Asia-Pacific region outperforms America in terms of the number of countries in the top 30 list. Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam are the countries from the Asia-Pacific region that feature in the Top 30.
Although only seven countries from the Americas appear in the final list of 30, these countries are becoming an attractive proposition for the US, which is the largest buyer of offshore services. This development could prove disadvantageous to the prospects of the Indian IT industry, which relies on the US for a majority of its revenues.
The list includes the Czech Republic, Egypt, Israel, Morocco, Poland, Russia, South Africa and Spain, among others.
The emergence of new destinations is a result of "significant activity in many countries in the last 12 months to consolidate or grow their positions as leading locations for offshore services," said Marriott.
The fact that these countries are nearshore locations for the US was a key factor for their moving into the list. Apart from this, language skills, cultural compatibility and time zone also played a part. Travel time was also an important consideration among customers.
The report attributes the rise of Morocco as an offshore destination to French-speaking countries increasing their proportion of work outsourced offshore. While Egypt and Panama offered the nearshore benefit, Thailand was attractive from the cost arbitrage point. "Given the current financial turmoil, cost will remain an important aspect. However, striking the right balance between lower cost and higher risks, and lower risks and higher costs will be critical in times of recession and uncertainty," said Marriott.
Among the top 30
and#149; Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Panama in America
and#149; Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam in the Asia-Pacific region
and#149; Four new destinations in the list: Egypt, Morocco, Panama and Thailand
Source:
http://in.news.yahoo.com/241/20081213/1019/tbs-downturn-sees-rise-of-new-offshor
The changing global economic scenario is heralding a preference for offshore destinations. According to a report released by Gartner, an information technology research agency, India and China remain undisputed leaders in this arena, but credible alternatives are emerging in all regions of the world.
According to the report, titled `30 leading locations for offshore services`, the dynamic nature of the offshoring market has seen the emergence of alternatives to the BRIC nations (Brazil, Russia, India, China).
"Countries such as Mexico, Poland and Vietnam have continued to strengthen their position, while others have forced their way into the top 30," said Ian Marriott, research vice-president at Gartner.
Marriott noted that these countries will try to wrest new opportunities arising out of the economic slowdown, as many organisations are now focussing on cost optimisation.
The report doesn`t rank countries on the basis of their attractiveness; it just lists the top 30 offshore destinations by region.
The Asia-Pacific region outperforms America in terms of the number of countries in the top 30 list. Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam are the countries from the Asia-Pacific region that feature in the Top 30.
Although only seven countries from the Americas appear in the final list of 30, these countries are becoming an attractive proposition for the US, which is the largest buyer of offshore services. This development could prove disadvantageous to the prospects of the Indian IT industry, which relies on the US for a majority of its revenues.
The list includes the Czech Republic, Egypt, Israel, Morocco, Poland, Russia, South Africa and Spain, among others.
The emergence of new destinations is a result of "significant activity in many countries in the last 12 months to consolidate or grow their positions as leading locations for offshore services," said Marriott.
The fact that these countries are nearshore locations for the US was a key factor for their moving into the list. Apart from this, language skills, cultural compatibility and time zone also played a part. Travel time was also an important consideration among customers.
The report attributes the rise of Morocco as an offshore destination to French-speaking countries increasing their proportion of work outsourced offshore. While Egypt and Panama offered the nearshore benefit, Thailand was attractive from the cost arbitrage point. "Given the current financial turmoil, cost will remain an important aspect. However, striking the right balance between lower cost and higher risks, and lower risks and higher costs will be critical in times of recession and uncertainty," said Marriott.
Among the top 30
and#149; Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Panama in America
and#149; Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam in the Asia-Pacific region
and#149; Four new destinations in the list: Egypt, Morocco, Panama and Thailand
Source:
http://in.news.yahoo.com/241/20081213/1019/tbs-downturn-sees-rise-of-new-offshor
