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6 Best Countries to Outsource and their Specializations

We’ll guess. You’re here because you have finally opened up to the idea of expanding your business offshore but don’t quite know where to start. You may have noticed a trend of companies expanding abroad without the mind-numbing budget spikes. And you wonder, “Will my company experience the same growth if I do the same thing?”

When you Google “countries for outsourcing,” you are most likely presented with an overwhelming list of options. Some sources might claim (and sneakily market) a single location to be the best bet for your company. But as you dig deeper, it is clear that different countries specialize in different services. In a nutshell, a geographic location in itself is not enough to decide upon. Many factors will come into play before you make a decision that best fits your company.

What to Consider

So what makes an ideal outsourcing location? Here are the important factors that you need to look into:

The talent pool. What skills do you need to outsource so your company can scale? Determining the specializations that fit is a great place to start and greatly narrows your options. But also ask yourself: Will your outsourced team be able to speak English (or in a language that you both can understand) fairly well? Do they have access to high-speed internet or resources for skill development? Sure, many countries may offer the same services, but getting the output that you expect and deserve all boils down to the skillset and communication skills of your outsourced team.

Reputation. What is the overall opinion about this outsourcing location or company? An outsourcing company is only as good as the feedback that you get from CEOs or founders who have preceded you. What others are saying about their experience and how it impacted their respective companies say significantly more than what online articles do, especially in a decision as overwhelming as the one at hand.

History. How long have they established their outsourcing industry? With countless offshore locations popping up, knowing which is best for you also depends on the answer to this question. Countries new to the game may not have learned the ropes of the industry yet, making it a huge potential risk as an offshore location. In this case, the longer a country has established an outsourcing industry, the higher rate of success that you might have.  

Costs. Ah, the biggest elephant in the room. What specific costs are in the equation? The main perk of outsourcing, in case you may not know, is its overall low-cost, high-quality results. Knowing the lower workforce cost is not the only thing to consider. Calculating a location’s average commercial office rent and government-mandated fees and employee benefits, etc. are all numbers that will be included in the calculation. So be wary of extraordinary promises at rock-bottom prices. A competitive price and a consistently-proven quality of work go hand-in-hand, especially in the matter. 

Top Outsourcing Locations

Now that we’ve laid the general groundwork, here are the best countries for outsourcing in no particular order:

  1. India became one of the top outsourcing destinations for many multinational companies after its IT boom in the last two decades. Determined to provide cost-effective but excellent quality services in software development, accounting, law, and engineering, the investment potential in the country remains head to head with many of its other competitors. 

 

  1. China’s outsourcing market grows at an impressive annual rate of 30%. The country is top of mind when it comes to low-cost product manufacturing for a reason. With its ability to hyper-innovate its technology, access to a wealth of raw materials, and a highly-skilled workforce, China can create economically-priced products but at a much quicker rate than its counterparts.

 

  1. Malaysia as a country may be tiny, but its might is evident when they made a name for themselves for their IT expertise. Thanks to the electronic manufacturing companies that have sprouted in the country, Malaysia has a sizable knowledgeable tech force to support larger multinational companies. 

 

  1. Vietnam has earned its fair share of the limelight due to its outsource manufacturing capabilities. Big sports apparel companies like Nike and Adidas have long depended on Vietnam. As of late, the country has become an emerging destination for outsourcing software development and artificial intelligence projects by offering competitive costs along with a highly-skilled IT workforce.

 

  1. Taiwan is right in the sweet spot in terms of location and overall capabilities. Many companies see Taiwan as an entry point to larger Chinese markets but with a software development-conducive environment.  It’s most popular software projects include algorithms, data structures, functional programming, and databases. 

 

  1. The Philippines boasts the longest history of outsourcing experience with the first BPO company established by Coca-Cola in the country in 1888, cementing the archipelago even then as a premier location. In 1997, SYKES opened the first IT-BPO company in the world, right in the country’s capital, Manila. Aside from having a competitive workforce with strong command in the English language, the Philippines offers the most extensive range of services by far. Its most popular services include product manufacturing, call centers, IT services, design, and digital marketing.

 

These countries tick every box on the list and you may already have a location or two in mind. Your most pressing concern at the moment might be how to further validate your choice. As the last step, check out our guide on how easy it is to create an offshore team through tried-and-tested methods.

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