The modern business world has evolved into
a complex array of supply chains with firms in the U.S. and U.K. turning to
host of other locations to outsource various operations. Some of these
outsourcing tasks involve software development firms, top
seo companies and top web design companies.
With increased and efficiency and lower
costs, outsourcing is transforming into a mainstay phenomenon for business
operations. Consequently, several outsourcing destinations are revealing signs
of improved growth, while some are, in essence, turning into hot spots for
outsourcing.
Among the two biggest players in the
outsourcing market are India and China – both countries have large pools of
skilled workers and offer cheap labour. Along with these two largest emerging
markets, Eastern Europe is also a favored location for outsourcing with Poland
revealing significant capacity to transform into an outsourcing hub in the
region.
John Blascovich, A.T. Kearney’s Assessment of
Excellence in Procurement, had anticipated in an early study that these regions
would once day see increased demand. When the finding was published in 2005 he
wrote, “The number of companies sourcing from China, Eastern Europe and India has increased
significantly in the last five years and will continue to rise in the future,”
reports supplychaindigital.com,
Blascovich speculated that by 2009, 72
percent of firms would be outsourcing to China. This figure is a steep climb
from a mere 30 percent ten years earlier. Backing up these sentiments, a recent
study by Gartner showed that India and China are the two biggest giants in
offshore outsourcing. The report goes on to say that nations in the Asia
Pacific region have also strengthened their positions. India has been listed in
the top ten leading locations for Offshore Services in Asia Pacific and Japan
in the current year, while the Philippines, Vietnam and Malaysia are stiff
rivals in the field. Along with these countries, Indonesia has made its entry
into the top ten list for the first time.
Research vice president, Gartner, Jim Longwood, said
in a statement, “Some of these countries have invested considerably and
leveraged increased demand for lower cost services.” Adding, “The global
financial crisis forced many organizations to place a greater emphasis on cost
optimization.”