by: Sarah Joson
Wednesday, March 25, 2015 | Outsourcing News |
At “Where in the World? Business Process Outsourcing (BPO) & Shared Service Location Index” created and published by global real estate adviser Cushman & Wakefield, it was revealed that Vietnam is now the global leader in outsourcing. Key indicators that define a worthy outsourcing destination include costs, risks, and operating conditions.
Richard Middleton, Head of EMEA and Asia Pacific occupier services at Cushman & Wakefield, said based on the pricing, Vietnam is still more economical compared to other global destinations like India and China, where wages continue to rise. However, amidst the rising cost and shrinking available skilled talent pool, India is still the leader in the global outsourcing segment by market size.
At C&W’s report last year, Vietnam was fifth place and since it has established itself as an alternate destination for affordable offshore outsourcing services, it gradually rose to take the lead. The government of Vietnam has implemented new rulings to promote its outsourcing sector.
On the other hand, the Philippines moved up one spot to second place as its BPO market continues to expand, driving the economy forward. The BPO market of the Philippines posted its highest ever earnings last year at US$15 billion. Moreover, it was reported that the country has absorbed 70 percent of India’s voice operations where it was discovered that the shift in power has affected the cost of labor in India, which also contributed to the rising rate of attrition at 26.9 percent, the highest in the world.
Global economies are still recovering from the economic slump, and the BPO sector is propelled by English-speaking developed countries, making the Philippines a strong candidate for outsourcing since the English communicating abilities of the Filipino workforce are well received in the US - ahead of other countries.