Vietnam, One of the Top 10 Offshoring Destinations in the World

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Jun. 4 – According to U.S. consultancy group, A. T. Kearney, Vietnam ranks as one of the ten most attractive offshoring destinations in the world.

Vietnam’s ranking climbed by 9 places to number 10, from a ranking of 19th place in 2007. In its 2009 report, Kearney cited that Vietnam’s software processing industry is expanding fast based on a survey of 50 countries.

The Global Services Location Index (GSLI) ranks a country by a combination of scores based on 43 measurements under three categories: financial attractiveness, people and skills availability and business environment.

The list is still dominated by India, China and Malaysia, which have topped the GSLI since its inception in 2004. These countries are thriving in the offshoring industry because they offer an attractive combination of high people skills, favorable business environment and low cost.

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The index also reflects the slipping competitiveness of Central European countries against countries in Asia, the Middle East and North Africa. Central European countries including Poland, the Czech Republic, Hungary and Slovakia, are attracting less offshoring business because of climbing wages and the currency appreciation against the dollar.

“While cost remains a major driver in decisions about where to outsource, the quality of the labor pool is gaining importance as companies view the labor market through a global lens driven by talent shortages at home, particularly in higher, value-added functions,” said Norbert Jorek, a partner with A.T. Kearney and managing director of the firm’s Global Business Policy Council in a statement. “In response, governments all over the world are investing in the human capital demanded by the offshoring industry.”

A complete list of the rankings can be read here.