Tuesday, June 16, 2009

Pakistan becomes world’s 20th best outsourcing destination

Web posted at: 6/8/2009 6:53:11

KARACHI: Deteriorating cost advantages and improved labor quality are driving a dramatic shift in the geography of off shoring according to the latest edition of global management consulting firm AT Kearney’s Global Services Location Index (GSLI), a ranking of the most attractive off shoring destinations. AT Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results.

While India, China and Malaysia retain the top three spots they’ve occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.

Pakistan has become the 20th most attractive outsourcing destination, according to consulting management firm AT Kearney. Even as concerns increase about Pakistan’s stability and the growing displaced population due to ongoing military operations with the Taliban, the country made a significant jump on AT Kearney’s 2009 Global Services Location Index released May 18. Pakistan went from number 30 in 2007 to number 20 in 2009.

The GSLI analyses and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centres and back-office support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment. Established Central European countries including Poland, the Czech Republic, Hungary and Slovakia, once among the premier off shoring destinations for Western Europe companies, have fallen significantly due to a rapid increase in costs driven by both wage inflation and currency appreciation against the dollar.

Meanwhile, low-cost countries in Southeast Asia and the Middle East made significant gains this year as the quality and availability of their labor forces improved. Egypt, Jordan and Vietnam ranked in the GSLI’s top 10 for the first time ever. “While cost remains a major driver in decisions about where to outsource, the quality of the labour pool is gaining importance as companies view the labour market through a global lens driven by talent shortages at home, particularly in higher, value-added functions” said Norbert Jorek, a partner with AT Kearney and managing director of the firm’s Global Business Policy Council


Anonymous said...



Post a Comment