India, Canada, And China Are Top Outsourcing Destinations: Study - InformationWeek
IT Leadership // IT Strategy
12:20 PM

India, Canada, And China Are Top Outsourcing Destinations: Study

India's skilled labor pool and mature level of services helped the country provide $12 billion in outsourced IT services last year.

U.S businesses looking to place their technology operations offshore should give strongest consideration to India, Canada, or China, according to a report released Tuesday by outsourcing consulting firm neoIT.

Those countries garnered the top three positions in neoIT's ranking of 14 possible IT outsourcing destinations. India, which took the No. 1 spot, offers "cost competitiveness, a highly skilled labor pool ... and a high level of service maturity," the consulting firm says. The country is also tops in the world in IT services exports, with sales topping $12 billion last year.

NeoIT ranked Canada second, noting its "geographic proximity to the U.S." and its "skilled labor force." Canada's IT services exports last year totaled $8.2 billion. China, with its "low cost," "large pool of skilled labor," and "rapidly improving infrastructure," ranked third. In its report, however, neoIT cautions that China's attractiveness is "negatively affected by the lack of English-language proficiency" in the country. China exported $700 million in IT services last year.

NeoIT also looked at some up-and-coming offshoring destinations. Poland ranked fourth with its "low overall business operations cost" and "language and cultural connections with Western Europe." The sixth-ranked Czech Republic is "an emerging contender," neoIT says. Russia ranked seventh, as the consulting firm raised flags over the country's "unpredictable political and business climate.

Romania, Brazil, and South Africa are the least attractive among possible destinations for IT outsourcing, says neoIT, because of their lack of infrastructure and labor skills.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of November 6, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll