Offshore Destinations to Consider
When you’re spoiled with hundreds of choices deciding on offshore destinations, choosing your ideal offshore destination can be a tough one. Realistically, offshore destinations that are suitable for business are viewed as the trump card that all companies need to move forward in the ever-changing business environment.
The offshore destination that you choose will ultimately determine how your company is able to tap into qualified and potential talent. Meaning, you’re able to take advantage of the global labour arbitrage and utilise technological advances to sustain growth rate.
We have compiled a list of three notable offshore destinations regions to consider.
Latin America has proved to be the next offshoring frontier in the industry, especially for the neighbouring United States and other Europe-based corporations. Many executives find that Latin American countries (i.e. Brazil, Chile, Colombia, Panama, Nicaragua etc.) offer competitive cost base, improved infrastructure and support from their governments. In fact, the trend is so solid that Brazil has climbed into the 4th rank in top 20 global offshoring destinations while Chile, Costa Rica and Colombia are also on the list.
You can easily find an abundance of skilled workers in various fields and business culture aligned to global standards. Candidates are fluent in Spanish, English (and in some cases even Portuguese), and they share cultural affinity with others across the world.
Engineering-oriented education systems dating back to the former Soviet Union, and the proximity to large economies have helped Eastern Europe significantly impact the global offshoring landscape. Countries like Romania, Russia and Ukraine are now formidable competitors to India – the main IT outsourcing hub in the world. Some executives even prefer European teams because they tend to have better engagement and collaboration; always ready to discuss in-depth issues.
Asia Pacific is the oldest and most dominant force in the global offshoring industry. However, as India and China have slowed down in their leading roles, the sub-region of ASEAN (Association of Southeast Asian Nations) advances and is poised to shine in the offshoring competition. Among 20 economies featuring in the report, five countries are members of ASEAN, namely Malaysia, Indonesia, Thailand, the Philippines, and Vietnam.
Leaning on their geopolitical significance, dedicated and skilled workforce, improving legal platforms and modern infrastructure, ASEAN is definitely the next “hotspot” for any company seeking to grow their offshore teams. In fact, countries in ASEAN have welcomed many large-scale offshoring projects since 2014. Examples are an IT and BPO park in Malaysia to house as many as 21,000 jobs by 2020; expanding centres in the Philippines creating approximately 4000 positions in the near future; the flow of Fortune 500 technology corporations outsourcing and offshoring in Vietnam.
With solid years of experience operating in ASEAN countries, ASW Global is always willing to connect Australian companies with investment opportunities in these offshore destinations. We can help guide you through a smooth business transition and build the most promising global teams in South East Asia.