Vietnam – the most financially attractive place for service offshoring
In June 2011, international consulting firm AT Kearney published the ‘Global Services Location Index’, a classification of the best destinations for offshoring. Unsurprisingly, India and China took 1st and second place respectively. Vietnam held its own despite the economic crisis and is now 8th in the world.
One of the criteria used is ‘financial attractiveness’ and in this category Vietnam saw off the competition to take first place. This means that Vietnam is, financially, the most attractive place in the world for service offshoring in 2011.
Political stability and economic strength are two other criteria which should be mentioned in relation to Vietnam: Vietnam benefits from political stability which has lasted more than 30 years (no conflict since 1998) and solid economic growth with an average growth rate of 7.4% in the last six years.
Other interesting information from the Kearney report is that the offshoring of IT services will need to evolve rapidly. In the new model, subcontractors will have to supply standardised software based on ‘pay as you go’ billing and combining BPO and cloud services. This will allow clients to offshore entire work processes and pay only for what they use.
Click here to read the full report.