10 Key Questions to Assess Application Outsourcing Maturity
2. Peru
Latin America's up and comer is garnering a lot of attention for its incredible domestic growth in recent years. "Companies that want early-mover advantage might be able to capture a loyal, long-term workforce if they set up shop right now," says Herrera. Pros: Low operational costs, rapidly growing domestic economy Cons: Nascent market, lower quality education system, limited English skills
3. Vietnam
Some IT leaders may be surprised to find that when you take into account factors such as wage inflation, real estate costs, taxes and salaries, Vietnam ranks best in class among outsourcing destinations--even better than India, says Hanson. Vietnam is also a favorite outsourcing location for Japanese companies, adds Karthik. Pros: Low cost of operations (30 to 50% less than India), strong government support Cons: Rampant software piracy, weak intellectual property laws, limited English skills
4. Bulgaria
Bulgaria remains one of the least expensive destinations in this region. "A combination of excellent educational institutions (if still somewhat influenced by the Soviet, rote style of learning), a passion for higher education among its citizens, and relatively good availability of European language skills has fueled a lot of growth here," says Herrera. Pros: Availability and quality of IT skills, proximity to Western Europe, BPO maturity Cons: Low IT services maturity, smaller population
5. Turkey
Turkey is volatile, but viable, says Herrera. "We still have relatively few clients going here, but would not instinctively advise against it. It looks to have potential across a number of functional expertise areas. It also has enough local, large companies to foster a sophisticated business-savvy workforce." Pros: Large labor pool, European language support, potential to support high level research and development work Cons: Security and geopolitical risk related to terrorism and international market, nascent IT market
6. South Africa
