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This article was first published 15 years ago

The world's top 10 BPO hotspots

May 22, 2009 13:28 IST

Image: The iconic Taj Mahal in Agra
Photographs: Stringer/Reuters
Notwithstanding the controversies surrounding outsourcing, India continues to remain the world's favourite BPO destination.

In spite of what the naysayers predict, there is little doubt that for a very long time, India will continue to rule the BPO waves thanks to its pool of young, skilled population, proficiency in English and low cost.

According to global management consulting firm A T Kearney's Global Services Location Index (GSLI), India, China and Malaysia have a unique combination of talent, cost efficiency and favourable business environment.

However, a fundamental shift in the index has taken place as the once strong Central European nations have yielded ground to countries in Asia, the Middle East and North Africa.

The GSLI ranks the most attractive offshoring destinations based on financial attractiveness, people and skills availability and business environment.

1. India

India has transformed the outsourcing industry in just a decade, staying ahead of all trends, says the study. However, terrorism, corporate scandals like Satyam and currency fluctuations have made some executives wary of India. While cost remains a major deciding factor, the quality of labour is also gaining prominence.

Check out the world's top outsourcing destinations...

The world's top 10 BPO hotspots

Image: Chinese national flags fly in front of the Potala Palace in Lhasa, Tibet
Photographs: China Daily/Reuters
2. China

China follows next at the 2nd position. Both India and China have a good majority of educated young people with good labour cost opportunities.

China lags behind India in terms of industry size, lack of language capability, concern over intellectual rights protection. China is an important player in the Asia-Pacific offshoring sector.

The world's top 10 BPO hotspots

Image: Malaysia scores high on BPO index
3. Malaysia

Malaysia is the third best outsourcing destination. It offers a safe business environment, good quality human capital at a low cost and strong government support, says the study.

The world's top 10 BPO hotspots

Image: Thailand has great potential
4. Thailand

Thailand comes next on the list at the fourth position. Thailand and Indonesia share similarities with the Philippines but lag behind in terms of language skills.

The offshoring industry in these countries can offer huge talent at a low cost, the study states.

The world's top 10 BPO hotspots

Image: A woman holds a sign protesting against outsourcing at a rally in front of Japan's embassy in Jakarta August 14, 2008
Photographs: Dadang Tri/Reuters
5. Indonesia

Indonesia is the 5th best outsourcing nation. It has the potential to compete with the Philippines.

The survey further said the global financial crisis has slowed recent offshoring moves, the percentage of companies' staff offshore may very well increase as a result of the crisis.

Layoffs at home are not translating to layoffs among offshore workers as companies seek to reduce costs.

The world's top 10 BPO hotspots

Image: A biker performs in front of the Great Giza pyramids during Red Bull Fighters International Freestyle Motocross 2009 Exhibition Tour on the outskirts of Cairo on April 10, 2009
Photographs: Goran Tomasevic/Reuters
6. Egypt 

Egypt is the world's sixth best outsourcing destination. The currencies of Eygpt and Jordan are closely linked to the dollar and their competitiveness is strengthened by a weak dollar.

Some other emerging offshoring destinations were Tunisia (17th), United Arab Emirates (29th) and Morocco (30th).

The world's top 10 BPO hotspots

Image: Sitel employees take calls from international customers at its new facility in Pasig City, Metro Manila on May 20, 2009
Photographs: Cheryl Ravelo/Reuters
7. Philippines 

The Philippines is the world's 7th best offshoring nation. It is also the second largest offshoring destination, with a 15 per cent share of the global market.

It has many call centres serving the US market. It is now moving into IT and non-voice BPO services, states the study.

The world's top 10 BPO hotspots

Image: Chile leads in Latin America
8.Chile 

Chile is the 8th best outsourcing destination and a leader in Latin America. Its favourable business environment and political stability are the positive indicators.

The country is also set to join the Organisation for Economic Co-operation and Development (OECD), a symbolic entry to the league of advanced economies, says the study.

The world's top 10 BPO hotspots

Image: Jordan among top performers
Photographs: Courtesy, Jordan Tourism website
9. Jordan 

Jordan is one of the top performers at the 9th position. Its expertise in information technology has attracted many companies. It also has a favourable business environment.

The world's top 10 BPO hotspots

Image: Hill tribe women walk past a sign advertising Internet services for tourists in the northern Vietnamese market town of Bac Ha, a popular destination for foreign visitors
Photographs: Rathavary Duong/Reuters
10.Vietnam

Vietnam is a country to watch out, says the study. It has an offshoring industry focused on information technology. Japanese companies have outsourced work to Vietnam for years.

Singapore has the best business environment according to the study.