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Survey: Asian Outsourcing Sector has Room for Growth

by: Sarah Joson

Monday, May 19, 2014 | Outsourcing News |

Outsourcing Market in Asia Continues to Thrive

The Grant Thornton International Business Report (IBR) 2014 shows that as the outsourcing industry in Asia continues to grow, opportunities are seen increasing as well. Businesses in the region are said to be experiencing more mergers and acquisitions, higher costs, and more talent management challenges which is why more firms are outsourcing business functions.

Data from the IBR show that only 42 percent of businesses in the Asia-Pacific region are outsourcing or are strongly considering outsourcing. Japan has been identified as the country that favors outsourcing the most with 60 percent. Thailand is next with 48 percent, 38 percent for India, Hong Kong with 18, Vietnam with 12 percent, and the Philippines with only four percent.

As for the rest of the world, Brazil and Argentina are some of the top outsourcers with 53 percent and 64 percent, respectively. This is a strong indication that outsourcing is more favored in Latin America than their counterparts in Asia.

The survey also highlighted that like in Hong Kong, where only 27 percent of the total number of survey participants accept outsourcing as a business tool, the rest of businesses based in the Asia-Pacific region are worried over losing control of a key process.
    
Meanwhile, Laure Mathieu, Managing Director of Outsourcing - Grant Thornton Hong Kong, said trust is the most important thing in outsourcing relationships. Goals should be set and achieved as a team. This will help both parties ensure the operation is managed properly.

Other factors that affect the perception of business executives towards outsourcing are the high cost of implementation (15%), lack of a strategic outsourcing plan (7%), and complexity or risks associated with hiring a contract service (7%).


Source:
http://www.theasset.com/

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