Saturday, August 25, 2007

A.T. Kearney's Index of the 50 Most Attractive Offshoring Locations, 2007

Let's talk about the obvious results first. India emerges on top by a wide margin with China and Malaysia (yes, you read that right) holding second and third place positions but take a look at some of the other locations that made the grade or reinforced their positions. United States came in 21st and Ireland came in last. The index is measured against financial attractiveness, people and skills availability and business environment. Before you move on to the report, here's a little more:
Findings in the 2007 A.T. Kearney Global Services Location IndexTM reveal that the relative cost advantage of the leading offshore destinations has declined almost universally. Nearly every country in the Index, even those that fell in the rankings, improved their absolute scores, thus confirming that competition among low-cost countries is intensifying. Increasingly, simply maintaining current performance levels is no longer sufficient for countries that want to attract (and retain) the fast-growing remote services business. In addition, this year’s findings suggest that while the wage advantage of offshore locations will continue for 20 or more years, this advantage will diminish as demand for skilled workers increases in offshore locations around the globe.

Now in its fourth year, the Global Services Location Index, or GSLI, analyzes and ranks the top 50 locations worldwide that provide the most common remote functions, including IT services and support, contact centers and back-office support.
Download the 20-page complimentary report, "Offshoring For Long-Term Advantage," here.


Anonymous said...

A great resource, Laurel. I guess my question is whether those countries will substantially increase the skill level of their workforce sufficiently to compete in the future.

Anonymous said...

Hi, Shawn ... thanks for your comment.

To answer your question, not positive but it sure looks like a global business opportunity waiting to happen. What I mean by that is folks like us -- consultants or online global entrepreneurs -- should be using all the new Web 2.0 social media and social networking platforms to train people worldwide on foreign language and other skills that are necessary for North American conglomerates to consider doing business with some of the so-called "hot spots" in the world where labor is cheap but the skill level perhaps not up to par.

Make sense? Further, some governments, as in the case of Egypt, are offering to pay a very high percentage of training for new employees to get them up to speed on doing business with the world.

All very promising. I only see opportunities for everyone.

What about through your lens?