Top 26 Outsourcing Destinations For Information Technology (IT) companies: List of Countries

Top 26 Outsourcing Destinations For Information Technology (IT) companies: List of Countries

India remains the top offshoring destination for information technology (IT) companies, followed by China and Malaysia, according to a study by consulting firm A.T. Kearney.

Mexico came in at No. 4, Indonesia, Thailand and the Philippines were ranked fifth, sixth and seventh in the list, and Brazil was No. 8.

The 2014 A.T. Kearney Global Services Location Index™ (GSLI), which measures the offshoring potential in 51 countries based on three categories:

1) Financial attractiveness
2) People skills and availability
3) Business environment

India “is unrivaled in both scale and people skills” and leading information technology services firms are expanding their traditional offerings to include research and development, product development, and other niche services, A.T. Kearney said.

effects of outsourcing

Based on an assessment of 25 metrics, help identify the countries with the strongest underlying fundamentals to potentially deliver information technology (IT), business process outsourcing (BPO), and voice service.

1. India (Financial attractiveness: 3.14 | People skills and availability: 2.71 | Business environment: 1.19 | Overall : 7.04) — undisputed leader in the field for the past decade, India is still unrivaled in both scale and skills. The IT services sector dominates the industry with exports of $40 billion, followed by BPO exports of $20 billion.

2. China (Financial attractiveness: 2.26 | People skills and availability: 2.54 | Business environment: 1.36 | Overall : 6.15)

3. Malaysia (Financial attractiveness: 2.72 | People skills and availability: 1.43 | Business environment: 1.84 | Overall : 5.98)

4. Mexico (Financial attractiveness: 2.67 | People skills and availability: 1.61 | Business environment: 1.61 | Overall : 5.90)

5. Indonesia (Financial attractiveness: 3.15 | People skills and availability: 1.56 | Business environment: 1.16 | Overall : 5.87)

6. Thailand (Financial attractiveness: 3.01 | People skills and availability: 1.42 | Business environment: 1.44 | Overall : 5.87)

7. Philippines (Financial attractiveness: 3.06 | People skills and availability: 1.48 | Business environment: 1.21 | Overall : 5.75)

8. Brazil (Financial attractiveness: 1.81 | People skills and availability: 2.25 | Business environment: 1.63 | Overall : 5.69)
9 Bulgaria (Financial attractiveness: 2.99 | People skills and availability: 0.97 | Business environment: 1.66 | Overall : 5.62)

10. Egypt (Financial attractiveness: 3.20 | People skills and availability: 1.36 | Business environment: 1.06 | Overall : 5.62)

Top Outsourcing Destinations For Information Technology (IT) companies: List of Countries

11. Poland, moves up 13 spots in the index this year. The biggest country in Central and Eastern Europe, it boasts a large labor force and multitude of city options. With industry dispersed across Warsaw, Krakow, Lodz, Katowice, and other cities, the country has a reasonable cost profile that, while slowly converging with Western Europe, is still lower by several magnitudes. Multinationals Sabre and Motorola operate large software development centers in Poland, accompanied by Comarch, Capgemini, and HCL in IT consulting.

12. Vietnam
13. Chile
14. United States (tier 2)
15. Lithuania
16. Sri Lanka
17. Germany (tier 2)
18. Romania
19. United Arab Emirates
20. Jordan
21. Russia
22. Estonia
23. Latvia
24. Costa Rica
25. Pakistan
26. Bangladesh

Dr. Amarendra Bhushan Dhiraj

Dr. Amarendra Bhushan Dhiraj Verified account

CEO And Editorial Director at CEOWORLD Magazine
Dr. Amarendra Bhushan Dhiraj is the CEO and editorial director at CEOWORLD magazine, the leading global business magazine written strictly for CEOs, CFOs, top managers, company directors, investors, senior executives, business leaders, high net worth individuals, and the most globally powerful men and women.
Dr. Amarendra Bhushan Dhiraj
  • fully agree about Ukraine. My friend worked with a nice team from Ukraine. Their name was Adoriasoft

  • but where is Ukraine? it’s a very popular outsourcing destination, especially for Western Europe!

    • Amarendra Bhushan

      Dear Irena,

      Ukraine is ranked at No. 41.