Outsourcing Centers in Asian Countries

Asia has long been a favorite for destinations for offshoring and outsourcing centers. Among the many countries in the continent, four countries have made their mark in the business of offshore and outsourcing staffing.

India: India is in the lead when it comes to offshore services and outsourcing centers in Asia. The country has established itself strong in both IT and non-IT outsourcing areas, and also has an attractive rate in scale and cost of labor. It has a very large pool of labor and manpower, and the employees are trained to meet the demands of a market bent on technology and telecommunications. Foreign investors looking to set up an outsourcing center in India will only have to expect infrastructure problems and inadequate local and international connectivity. There is also the issue of privacy and security laws, as India lacks breach notification requirements and privacy legislation that equal that of the laws of U.S.

China: China is not likely be left out in this business of outsourcing centers. The country is proving to be competitive, too. Its labor size and costs is competitive relative to other offshoring destinations. There is the problem of language barriers, however, and sometimes investors have to pay a premium to get hold of personnel with English-language capabilities. There is a lack of English fluency in the country that makes it difficult for Americans to conduct their business. Other problems that foreigners have to contend with in setting up outsourcing centers in China are the country’s copyright laws and intellectual property rights regarding IT software, and the inner-country competition (wherein you cannot trust what one province has to say about another province because most probably they are just badmouthing each other).

The Philippines: The archipelago can give India a run for its money when it comes to English fluency and labor cost. With the Philippines’ history with the Americans, the Filipinos have become familiar with the American language and culture. English is considered as the county’s second language. The Filipinos are also attuned to the modern culture of the U.S. Aside from the people’s cultural compatibility, the Philippines also offers effective BPO and is constantly improving in the field of technology. If not for the political instability, crime and corruption, and social unrest in the country, the Philippines would be the ideal destination for offshoring and outsourcing centers.

Vietnam: Vietnam is the latest Asian country to emerge among the top destination for offshoring and outsourcing centers. The country has low labor costs and also has a young and educated talent pool for staffing. The problem in choosing this country lies on the lack of language comprehension and English fluency. There is also a lack government support when you’re looking for guidance in investing in the country. Vietnam businesses may also be lacking when it comes to the standard business practices and operating norms of the U.S.

The growth of these countries in terms of technological applications and telecommunications only gives more strength to them becoming top destinations for outsourcing centers. Foreign investors only need to consider the pros and cons of these top four countries, choose among them, and start their own outsourced company in the country they have selected.