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6 hot offshore IT outsourcing markets offer new options

Stephanie Overby | Feb. 4, 2013
Here are six IT and business process outsourcing destinations worth a look in 2013.

Pros: Low cost of operations (30 to 50 percent 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

Like Bulgaria, BPO is where South Africa has made its mark thus far. But it's bang for the buck is driving interest in sourcing IT-related work here as well. The country also boasts sophisticated finance and accounting specific skills, says Karthik.

Pros: Large English-speaking labor pool, European time zone compatibility, developed infrastructure, attractive domestic and regional market
Cons: Higher operating costs than most offshore locations, lower IT services maturity


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