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Top Countries for Global IT Sourcing

Sep 3, 2008
Many people automatically think of China or India when considering global IT sourcing. However, there are numerous countries including, Argentina, Ireland, and Singapore, which have become top destinations for global IT sourcing. Selecting the right location is crucial when sending work to a global sourcing provider. The location of the global sourcing provider plays a major role in the success of an IT project.

Gartner Research recently compiled a list of the top 30 countries for global sourcing. Each country was judged on 10 key criteria, which included local government support, infrastructure, language, education system, labor pool, cost, data security and privacy, political and economic environment, global and legal maturity and cultural compatibility. The list was then categorized into geographical regions. Below are the highest scoring countries based on Gartner's research.

Americas: Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Uruguay

Among the countries in the Americas, Canada received very good ratings with the highest score in 7 of the 10 categories. The demand for Spanish speakers has increased the popularity of Latin American countries among U.S. outsourcers. However, there are some concerns about intellectual property and data security and privacy within this area.

Europe, the Middle East and Africa: The Czech Republic, Hungary, Ireland, Israel, Northern Ireland, Poland, Romania, Russia, Slovakia, South Africa, Spain, Turkey and Ukraine

Ireland, Israel, Northern Ireland and South Africa all scored well in language, since English is commonly spoken by many residents in these countries. Other countries within this region including, the Czech Republic, Slovakia, Hungary, Poland and Romania, were acknowledged for alternative language skills, which is a benefit for European buyers. One of the main concerns in this region had to do with government support. Gartner also found that very few countries within this area, with Russia as an exception, provide an ample selection of vendors looking to sell their capabilities outside their home country.

Asia/Pacific: Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka and Vietnam

China, India and Singapore scored well in the strong government support category. Australia, New Zealand and Singapore are all believed to be higher-cost locations, but these countries had high scores in the categories of cultural compatibility, political and economic environment, data and intellectual property security and privacy and global and legal maturity. Countries such as Pakistan, the Philippines, Sri Lanka and Vietnam, did not receive good ratings in the categories of political and economic environment and many outsourcers are concerned about this issue.

The factors for choosing a location for global sourcing will depend on the outsourcer and the type of work being completed. Outsourcing companies need to evaluate the strengths and weaknesses of each region to determine which location would be the best fit.
About the Author
A&E Consulting is a full service consulting firm that has been successfully helping clients with their global needs. Visit http://www.globalsourceyourit.com or call 818-572-8399 for more information.
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