Outsourcing Countries – India , Vietnam and the Philippines

First published on Apr 5, 2015. Updated July 27, 2015

Cebu, Philippines – Outsourcing: It has become the economic driving force of several countries since the invention of the Internet. Worldwide communication has become very easy, with the means of email, chat, phone or video. Several countries and nationalities can collaborate on a project via the Internet infrastructure. Information and Source Codes can also be shipped by this means. But Who are the key players behind the outsourcing revolution? I give my statements to 3 Asian countries that participates in the Outsourcing economy. As I know, These countries can take on Any Worldwide client, May it be North America, Europe, Oceania/Australia or Asia. Other countries are considered “Nearsource” since they are favored by the clients by its close geographical location ( ex: Costa Rica, Poland ). So here goes…

800px-Flag_of_India.svg

1.) INDIA – The Pioneer of the Outsourcing Industry. No other country can compete with sheer volume of its English speaking workforce. IT talent is also very abundant, with almost no shortage of skills in every IT position ( Developer, System Administration, Middle and Top Management, and other positions ). But recently India has increasing wages, due to competition of companies and talents. But still, only a selected portion of it is, as I know India is still on the competitive salary range, compared to other countries ( ex. Singapore )

India Update: India still holds the largest talent pool of English speaking outsourced IT personnel. Yet there are a lot of brilliant engineers from India, the skill quality of some engineers are questionable, when hiring on this huge talent pool.

Flag_of_Vietnam.svg

2.) VIETNAM – A new but very competitive player in the IT outsourcing. Vietnam’s secrets as an outsource destination is now being uncovered. Most companies go to India or the Philippines since these countries are know for its English speaking workforce. But Vietnam is catching up, and its IT professionals can speak good and comprehensible English. Infrastructure is improving and cost is a bargain. Talent pool may be a bit short, but it’s enough since there are already several Huge IT outsourcing companies in Vietnam. They focus more on software development, unlike India and the Philippines, which can handle all types of outsourcing jobs ( such Software Development, Accounting, Sales, Call Centers, Medical Transcription and etc … ) .

Vietnam Update : According to latest news and surveys, Vietnam is now considered the top IT outsourcing destination. A combination of skilled workforce, government support and wage factors takes Vietnam as a leading contender. Software Startups are booming in Vietnam.

About Vietnam start-ups:

http://www.cnet.com/pictures/vietnams-fledgling-startup-scene-pictures/

http://www.virgin.com/entrepreneur/the-worlds-best-start-up-hubs-ho-chi-minh-city-vietnam

Flag_of_the_Philippines.svg

3.) PHILIPPINES – It does not have the volume workforce compared to India, and just higher than Vietnam, but the Philippines is considered a major outsource destination by giving the best value for cost and expertise. Infrastructure is already good, and improving. Wages are on the rise in Metro Manila, with some even comparable to Singapore. But the alternative is to get talent in other cities, where wages are still lower. Cebu City remains to be the best option because of the abundance of workforce ( People coming in from the Visayas and Mindanao ) with an Infrastructure and City comparable to Metro Manila, with the bonus of lesser traffic and lesser population. The Philippines’ major clients are the United States ( Due to English and very similar culture as a former U.S. Colony ) and Japan ( As its “Nearsource” partner, next to China that is… ). Europe, Australia, and Canada are also in as other clients. Best part of Outsourcing in the Philippines? The land is considered a “Tropical Paradise”.

Philippines Update: The Philippines still holds the top spot as the No. 1 Call Center outsourcing provider. Software and other Information Technology services are also making an impact. Multinational companies such as Accenture, IBM and HP already have major offices in the Philippines.

Comparison to other South East Asian Countries:

Other South East Asian countries have a different economy, Thus Outsourcing may not be its main source of income. Malaysia has a bit higher wage compared to the Philippines, Although they have IT experts, but they need foreign talent to reinforce it. Thailand has a vibrant economy on tourism and manufacturing, but not so much on Information Technology. Indonesia is more on Agriculture. China is major player also, It can rival India but IT talent may be expensive. Singapore is expensive but you get excellent talent from several nationalities ( Singapore , Philippines, India, Malaysia, Vietnam and etc.. ) not suitable for volume work but great for Research Development and Start-up.

Comparisons and reports of outsourcing

http://www.theregister.co.uk/2015/04/22/good_news_your_jobs_not_going_to_the_philippines/

Other Sources

http://techcrunch.com/2015/04/03/the-promise-of-outsourcing-to-vietnam/
http://www.bloomberg.com/ss/09/01/0114_top_outsourcers

Countries to watch out!

1.) Kenya – English speaking country in Africa. It’s Capital City of Nairobi is a booming urban jungle.

2.) Poland – Considered the best outsourcing partner for Europe and the United States.

note: flag images are of public use taken from wikipedia.

 

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