BRIC countries lead top off-shoring locations

21 December 2007
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21 December 2007 | Paul Snell

China, Russia and Brazil are now proving credible alternatives to India for offshore services, according to a study.

Research carried out by Gartner has identified a list of 30 countries most suitable for off-shoring either IT or business process services. In addition to the BRIC countries, with India the "undisputed leader", there was strong representation from Eastern Europe and South America.

The research firm expects spending on offshore services in Europe to grow by 60 per cent in 2008, and by 40 per cent in the US.

Ian Marriott, research vice president at Gartner, said in a statement: "While these thirty countries demonstrated their suitability to develop or enhance their offshore service credentials, another 35 countries were considered."

Gartner said it was not appropriate to rank the countries, as each organisation would have different needs. For example Latin American countries are becoming more popular locations for US firms because of the increasing need for Spanish language skills.

Those countries with higher costs, such as Australia, New Zealand and Singapore, also scored highest on cultural compatibility, global and legal maturity and data and intellectual property security.

The thirty countries are: Argentina, Australia, Brazil, Canada, Chile, China, Czech Republic, Costa Rica, Hungary, India, Ireland, Israel, Malaysia, Mexico, New Zealand, Northern Ireland, Pakistan, Poland, the Philippines, Romania, Russia, Singapore, Slovakia, South Africa, Spain, Sri Lanka, Turkey, Ukraine, Uruguay and Vietnam.

SMdec2007

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