Gartner: Top 30 countries for offshore IT services

Offshore IT services spending will grow 40% in the United States and 60% in Europe in 2008, according to Gartner.

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Offshore IT services spending will grow 40% in the United States and 60% in Europe in 2008, according to Gartner.

The analyst firm has produced a guide for organisations looking at where to spend their outsourcing cash.

It used ten criteria (language, government support, labour pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy) to compile a list of the top 30 global destinations for IT services by region:

Americas Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Uruguay

Asia/Pacific Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka and Vietnam

Europe, the Middle East and Africa (EMEA) The Czech Republic, Hungary, Ireland, Israel, Northern Ireland, Poland, Romania, Russia, Slovakia, South Africa, Spain, Turkey and Ukraine

Government support for outsourcing was generally low in the EMEA region, according to Gartner. Ireland, Israel, Northern Ireland and South Africa garnered good scores for English language. But the Czech Republic, Slovakia, Hungary, Poland and Romania got extra credit for alternative language capabilities - attractive for an increasing number of continental European buyers.

New EU members Slovakia and Romania, along with Russia and Ukraine were low cost leaders, though Gartner notes costs in the EMEA region are in a state of flux.

Destinations in the Americas are most attractive to buyers in the United States. Canada led in seven of Gartner top ten list categories (faring worst in the region for cost of labour). Latin American countries are increasingly valued for their Spanish speaking employees, but IP and security concerns are more prevalent.

In the Asia/Pacific region, China, India and Singapore all demonstrated strong government support of IT services, but China scored poorly on language skills, according to Gartner. Political and economic risk are an issue with Pakistan, the Philippines, Sri Lanka and Vietnam, says Gartner, while higher-cost locations like Australia, New Zealand and Singapore led for cultural compatibility, global and legal maturity, and data and intellectual property security and privacy.


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