Tuesday, July 31, 2007

Top Countries for Outsourcing

Earlier this year, consultancy A.T. Kearney identified the most desirable outsourcing destinations. Countries were ranked by
  1. financial attractiveness, based on such measures as compensation and infrastructure costs;
  2. a so-called people score, measuring a nation's people skills, availability of language and educational skills, and the size and quality of the IT industry; and
  3. their economic/political environment, infrastructure quality, cultural exposure, and IP security.
Country Overall Score Financial Score People Score Environment Score
India 6.9 3.2 2.3 1.4
China 6.6 2.9 2.3 1.4
Malaysia 6.1 2.8 1.3 2.0
Thailand 6.0 3.2 1.2 1.6
Brazil 5.9 2.6 1.8 1.5
Indonesia 5.9 3.3 1.5 1.1
Chile 5.8 2.7 1.2 1.9
Philippines 5.8 3.3 1.2 1.3
Bulgaria 5.8 3.2 1.0 1.6
Mexico 5.7 2.6 1.5 1.6
Singapore 5.7 1.7 1.5 2.5
Slovakia 5.6 2.8 1.0 1.8
Egypt 5.6 3.2 1.1 1.3
Jordan 5.6 3.1 1.0 1.5
Estonia 5.6 2.4 1.0 2.2
Czech 5.6 2.4 1.1 2.1
Latvia 5.5 2.6 0.9 2.0
Poland 5.6 2.6 1.2 1.8
Vietnam 5.5 3.3 1.0 1.2
UAE 5.5 2.7 0.9 1.9
USA (Tier II) 5.5 0.5 2.7 2.3
Uruguay 5.5 3.0 1.0 1.5
Argentina 5.5 2.9 1.3 1.3
Hungary 5.5 2.5 1.0 2.0
Mauritius 5.4 2.8 1.0 1.6
Tunisia 5.4 3.0 0.9 1.5
Ghana 5.5 3.3 0.9 1.3
Lithuania 5.4 2.6 0.8 2.0
Sri Lanka 5.4 3.2 1.0 1.2
Pakistan 5.3 3.2 1.0 1.1
South Africa 5.3 2.5 1.2 1.6
Jamaica 5.3 2.8 1.0 1.5
Romania 5.3 2.9 0.9 1.5
Costa Rica 5.3 3.0 0.9 1.4
Canada 5.2 0.8 2.1 2.3
Morocco 5.1 2.9 0.9 1.3
Russia 5.2 2.6 1.4 1.2
Israel 5.2 2.0 1.3 1.9
Senegal 5.1 3.2 0.8 1.1
Germany (Tier II) 5.1 0.5 2.2 2.4
Panama 5.1 2.9 0.8 1.4
UK (Tier II) 5.1 0.5 2.2 2.4
Spain 5.0 1.2 1.7 2.1
New Zealand 4.9 1.5 1.1 2.3
Australia 4.9 0.9 1.7 2.3
Portugal 4.8 1.6 1.1 2.1
Ukraine 4.9 2.8 1.0 1.1
France (Tier II) 4.9 0.5 2.1 2.3
Turkey 4.8 2.1 1.3 1.4
Ireland 4.2 0.4 1.5 2.3

Financial Score measures a country's financial attractiveness based on the costs of compensation, infrastructure, and taxes and regulations.

People Score measures a country's people skills and availability based on the IT/BPO (Business process outsourcing) industry size and quality, laborforce availability, educational skills, language skills, and attrition risk.

Environment Score measures a country's business environment based on the economic/political environment, infrastructure quality, cultural exposure, and IP security.

Source: A.T. Kearney Global Services Location Index 2007

--BusinessWeek

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