Outsourcing Trends - The Asian Connection

The Global Services Location Index for 2007 compiledfor Asian students and professionals. Even young
by A.T. Kearney clearly identifies India, China, Malaysia,mothers and home-makers as well as working
Brazil, Philippines and Thailand as the preferredexecutives juggle their schedules to fit in work as
locations for outsourcing services across all industries.virtual assistants, and their working worlds are
As statistics indicate, its not just tech support andconveniently shrunk to fit a laptop. With favorable
low-end secretarial jobs that are being outsourced.statistics, this trend is here to stay-the International
Since these countries are widely known for their poolLabor Organization predicts that by 2020, India will
of talented workforce that is also relatively young andhave 110 million working age people while China will
upwardly mobile, domain expertise is now more easilyhave 94 million.
available. The wage-cost factor still continues to drawA peek into the Asian psyche reveals a state of mind
outsourcers to these markets where offshorethat is readying itself to become a part of the global
services are still cost-competitive compared to inflatedwork environment. Fed a diet of Hollywood movies
wage costs in the developed countries.and Bill Gates, an average city-bred young person
Where a favorable business environment is thebelongs to the era where almost every Asian family
deciding factor for outsourcing, Singapore and Malaysiahas a relative abroad. Even the local entertainment
are preferred over India and China, although here too,bears remnants of western idols, which turns them into
there is improvement. What has worked to create thisanglophiles at an early age. Once they're ready to join
advantage is that outsourcing firms in these countriesthe workforce, overseas seems only a click away.
have begun to invest time and effort in trying to matchWith a very vibrant and open media that openly
the needs of their clients from overseas. With theendorses multi-lateral trade and international relations
onslaught of offshore service firms offeringacross the globe, every educated individual in Asia, is
opportunities to twenty something just beginning theirfast catching on to leveraging basic qualifications with
adult lives, physical and cultural boundaries tend to blur.the help of communication skills and cultural adaptability.
Throw in a training program that offers them a chanceSince the vibrant virtual world reflects outsourcing as a
to upgrade their skills, and you have a workforce thatglobal business trend, all kinds of businesses, especially
consistently strives to move up the "value chain."in the west should no longer ignore outsourcing as a
Jumping on this bandwagon are not only newviable component of their strategic vision. Clearly, as
graduates, but also seasoned professionals with aservices move up the value chain to offer high-tech
multitude of skills and qualifications. In the face of highservices, cost advantages of other low-end service
unemployment rates, entrepreneurship now has manylocations like Vietnam and Poland are not as viable
offshoots in the form of consulting, and consequently,because businesses realize that in the long run, only
freelancing has emerged as the preferred course ofquality service pays, even if it comes at a cost.
work for many certified professionals.Current outsourcing trends reflect a shift towards
The result - a mass exodus from the suburbs tomore demand for specialized services that can build
where the action lies. The average young teen nosynergies with their collaborators. As a consequence,
longer relies on traditional professions but looks beyondcountries that are able to offer skills as well as a
the shores. Open a daily newspaper and you'll findfavorable business environment will over the years
educational institutions and companies making a beelineemerge as leading outsourcing locations.