How can you identify the most attractive emerging IT outsourcing destinations?

1 IT infrastructure

One of the first things to look for in an IT outsourcing destination is the quality and reliability of its IT infrastructure. This includes the availability and speed of internet access, the level of digitalization and innovation, and the presence of IT hubs and clusters. A good IT infrastructure can ensure that your outsourcing partner can deliver your projects on time, with high performance and security, and with minimal disruptions. Some of the emerging IT outsourcing destinations that have invested in improving their IT infrastructure are Vietnam, Ukraine, Colombia, and South Africa.

2 IT talent pool

Another key factor to consider is the size and skills of the IT talent pool in the outsourcing destination. You want to find a country that has a large number of IT professionals with relevant expertise, experience, and certifications. You also want to check the quality and availability of IT education and training, as well as the competitiveness and attractiveness of the IT labor market. Some of the emerging IT outsourcing destinations that have a strong and diverse IT talent pool are India, Poland, Romania, and the Philippines.

3 Cultural and linguistic compatibility

A third factor to evaluate is the cultural and linguistic compatibility between your business and the outsourcing destination. You want to find a country that has a similar or compatible work culture, business ethics, and communication style. You also want to find a country that has a high level of English proficiency or other languages that you need for your projects. Some of the emerging IT outsourcing destinations that have a high degree of cultural and linguistic compatibility are Brazil, Mexico, Morocco, and Malaysia.

4 Legal and regulatory environment

A fourth factor to assess is the legal and regulatory environment of the outsourcing destination. You want to find a country that has a stable and transparent political and economic system, a favorable and clear tax and trade regime, and a strong and enforceable intellectual property and data protection laws. You also want to find a country that has a low level of corruption, bureaucracy, and risk. Some of the emerging IT outsourcing destinations that have a favorable legal and regulatory environment are Estonia, Singapore, Chile, and Costa Rica.

5 Cost of living and doing business

A fifth factor to compare is the cost of living and doing business in the outsourcing destination. You want to find a country that has a low or reasonable cost of living and doing business, without compromising on the quality and value of the IT services. You also want to find a country that has a stable and competitive exchange rate, a low inflation rate, and a favorable purchasing power parity. Some of the emerging IT outsourcing destinations that have a low or reasonable cost of living and doing business are Thailand, Indonesia, Bulgaria, and Egypt.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?