The world's top 10 BPO hotspots

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...

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.

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.

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.

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.

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).

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.

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.

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.

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.