I found this diagram about outsourcing and what growing companies think about when deciding where and what operation they are outsourcing interesting because the country and the operation they are outsourcing are heavey depent on each other. For example, many companies are outsourcing parts of their companies to the Philippines due to the lower cost, can focus on core business, and to avoid paying health insurance, pension contribution and other benefits that the company would have had to pay for in the orgin country of the company. The main operation that they are outsourcing to the Philippines are call centers due the focus on educating Filippinos in english and the lower costs for the labour.
My question is what factors, other than money, cause the top five countries for the best offshore destination from a Western European perspective to be India, China and countries from Southeast Asia? What makes them so different compared to lower ranked countries such as Bularia, Ghana, Romania, Russia and South Africa?
Nick, I'm not sure if I understand your question because to me, the answer is in the diagram you've provided. The reasons these countries are more desirable is because they fit all the criteria/reasons for why you'd choose a destination for your offshoring business operations. Could you clarify what you're asking?
ReplyDeleteI was wondering if socal factors have a major effect in the countries choosen because China, India and southeastern countries have major differences with cuture, religion and the state of mind of people compared to Bulgaria, Tunsia, Russia and South Africa.
ReplyDeleteI'm not entirely sure if it's about social factors but it's more or less about the economic state of the country. For example, since the Philippines is a populous country and has a low minimum wage compared to more economically developed countries, then I would believe that these factors more or less effect the countries chosen/ranked.
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