Offshore Today

Spotlight: Outsource destination - Pakistan

We were surprised at the strength of outsourcing to Pakistan, yet we have learned it is a strong offshore services community. As we reported, there are many global locations that have internal issues, yet remain viable offshore business locations. Mexico has the current drug wars, India has it's own issues as does the Philippines, yet they remain strong sources of valuable services. Apparently the same is true with Pakistan.

Truth is, we believe that the entrepreneurial spirit and a true eagerness to work resides in all countries. The recent uprising in Iran and the use of technology show that there is innovative spirit under any government or regime. In Pakistan, from a recent conversation with a business owner in the southern provinces - there is a strong thriving business community and enough labor to support high quality low cost services. "The trouble is mostly in the North," He spoke of the Taliban issues as if it was in a different country, and not kilometers away.

According to global consulting company AT Kearney, their annual Global Services Location Index (GSLI) increased the ranking for Pakistan from #30 in 2007 to #20.

"Countries are measured on 43 different attributes related to financial attractiveness, people and skills availability and business environment." (Business Week: Pakistan, A Popular Outsourcing Destination? Rachael King June 4, 2009)

As one of the comments in this article stated: most of the outsourcing is coming from the top 5-7 global locations. However, we believe it is critical to look at the services offered, the quality of the workforce, their innovation and costs - before judging if the location is undesirable. We remain optimistic about Pakistan and other countries that are below the top-three.

Spotlight: Outsource destination - Philippines

Language and similar cultural values are criteria that can be included in your evaluation for offshore outsourcing partners. The Philippines offers a unique advantage, as this was once an American Colony, and English is a major part of their lives.

From a recent ezine article (the full story):

"Studies from Gartner Research have shown that the Philippines is the most Westernized of any Asian countries that provide offshore outsourcing. A former US colony the political and educational systems are modeled after those in the United States."

"Recent studies by Kelly Services study in partnership with Singapore-based ACA Research, Inc. show that Filipinos are healthier, more loyal to their employers, and have better language skills than all other offshore outsourcing countries..."

Language is only one criteria that should be researched in making an offshore partner decision. However their command of the English language and cultural advantages may provide benefits for offshore telemarketing and other customer facing interactions. Other country spotlights will be in this blog... fair & balanced.

Offshore: just about everywhere!

There was a time when offshore technology development meant India. Clearly, India has the lead on offshore IT outsourcing. Yet today, there are so many other locations to consider. How do you make a decision on where to place your outsourcing trust?

Sorry, there are no easy answers to this question. However, we believe that your search for a IT development partner (or BPO, KPO ,LPO...) should come down to skill level, reputation and finally cost, in this order. Said another way; search the world for a partner - instead of focusing on one region. Then use their proximity, time zone different, language as a final criteria for selection.

There are great new offshore partners in Mexico, Poland, Guatemala, Vietnam, Ukraine, Egypt, Argentina, China, Singapore and... on and on.  So think globally - casting your net wide, before focusing on one specific geographic location. Then base your final decison on the partners capabilities and cost - their location as just one data point.