Sunday, December 14, 2008

Gartner identifies alternatives for off-shoring

Economic conditions being what they are, off-shoring is going to become an even more attractive option for organizations searching for ways to keep their projects going. Gartner (NYSE: IT) released a study last week that identified the thirty "best" countries for off-shore capabilities. India still tops the list. However, the rest of the top countries contained names that may surprise you.
  • Americas: Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Panama.
  • Asia/Pacific: Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Thailand and Vietnam.
  • Europe, the Middle East and Africa (EMEA): The Czech Republic, Egypt, Hungary, Ireland, Israel, Morocco, Poland, Romania, Russia, Slovakia, South Africa, Spain and Ukraine.
Because of the criteria used in the study (see below), English-speaking countries like Canada, Ireland, Australia and South Africa will fare well. Using a Canadian firm may prove to be a very attractive alternative given the cultural similarities... and don't forget about the time differences.

This study did not seem to address outsourcing as it relates to operational tasks, like network maintenance and desktop support. For firms that have already gone as far as they can on project expenses, those areas will be logical targets for review.

Gartner's study also claimed that out-sourcing expenditures world-wide will have grown by 40% during 2008. I am suspicious of that number, and the report does not back it up with any details.

Gartner study criteria:
Language, government support, labour pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy

Link to Gartner study: Gartner Identifies Top 30 Countries for Offshore Services

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