Mexico, the Philippines, Sri Lanka...

A lot of outsourcing news hit my inbox today. First off, the National Outsourcing Association Awards for 2013 has named Sri Lanka the "outsourcing destination of the year". Sri Lanka ASSCOM Chairman Madu Ratnayake, in expressing his appreciation, referenced the country’s market development strategy over the last five years, which has built on the foundations that pioneering companies have established in international markets. Acknowledging the impact of this award on the growing visibility of Sri Lanka's IT and knowledge services industries, Ratnayake was optimistic abour future and continued growth for this sector. AT Kearneyranks Sri Lanka among the top 25 global outsourcing locations, and Gartner ranks it in the top 30. more And while Sri Lanka celebrates international recognition for outsourcing, the big headline elsewhere is that India is outsourcing its outsourcing to… the Philippines. Call centers, in particular, appear to be leveraging the low-cost talent on offer in the Philippines. Not just the usual suspects [American companies] have recognized this – some Indian companies are now also setting up base there to take advantage of profit margins as high as 40 to 50%. While Indian wages are still lower on average than those in the Philippines, higher taxation makes the Philippines increasingly attractive, according to local practitioners. The Philippines also haa a more natural cultural and language affinity with American-based Fortune 500 companies. more Elsewhere Forbes reports that Mexico is becoming a major player in the "nearshoring" technology and business process industry. In fact, Mexico is developing its own version of Silicon Valley, already host to more than 2000 IT companies including local startups as well as international heavyweights. BPO firm Genpact has a center in Ciudad Juarez, as does BPO firm ACS, which employs more than 3000 people there. more Finally, a recent study on IT outsourcing indicates that competitive pressures will push nearly 70% of IT infrastructure into outsourcing partnerships by 2017, double what it is today. The move is fueled by greater adoption of hybrid cloud architectures, increasing collocated services, and an increase in managed services. Apart from cost, the transformation is being driven by scale requirements. Whether outsourced or insourced, however, smart practitioners are basing decisions on how external resources can best support the enterprise. more [inlinead]

Mexico, the Philippines, Sri Lanka...

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