Mohammad Ashraful Islam
17 January 2023
The outsourcing industry has seen a significant growth in recent years and South East Asia has become a popular destination for businesses looking to outsource services. The region offers a skilled workforce, lower labor costs, and proximity to major markets in Asia and the West. In this article, we will take a look at the top outsourcing countries in South East Asia, and discuss some of the factors that make them attractive to businesses.
1. India
India has long been a top destination for outsourcing services. The country has a large pool of highly educated and skilled workers and a strong IT infrastructure. According to a report by the National Association of Software and Services Companies (NASSCOM), the IT-BPM industry in India is expected to reach $350 billion by 2025. India is also the world’s largest sourcing destination for the information technology (IT) industry, accounting for approximately 55% of the global outsourcing market. The country has a large English-speaking population, which makes it an attractive destination for businesses that need to communicate with their outsourcing partners in English. Additionally, India has a large number of IT and business process outsourcing (BPO) companies, which provide a wide range of services to businesses around the world.
2. Bangladesh
Bangladesh has been rapidly emerging as a new destination for outsourcing in recent years. The country has a large and young population, which is well-educated and has a strong work ethic. According to a report by the Bangladesh Association of Call Center and Outsourcing (BACCO), the outsourcing industry in Bangladesh is expected to reach $5 billion by 2025. The country is particularly well-suited for manufacturing and engineering services, and has a growing IT and BPO industry. Additionally, Bangladesh’s proximity to major markets in Asia makes it an attractive destination for businesses looking to tap into these markets. The country offers lower wages and better availability of resources as compared to other outsourcing destinations, which is a key advantage for companies looking to reduce their costs.
3. The Philippines
The Philippines has a large English-speaking population, and a strong pool of highly educated and skilled workers. The country has a strong BPO industry, and is particularly well-suited for customer service and support, as well as data entry and transcription. According to the Contact Center Association of the Philippines (CCAP), the BPO industry in the Philippines is expected to generate $49 billion in revenue by 2028. The Philippines is known for its low labor costs and high productivity, which makes it an attractive destination for businesses looking to cut costs.
4. China
China has become a popular destination for outsourcing in recent years. The country has a large pool of highly educated and skilled workers, as well as a strong IT infrastructure. According to a report by the China Outsourcing Research Institute (CORI), the outsourcing industry in China is expected to reach $250 billion by 2025. China is particularly well-suited for manufacturing, engineering, and other technical services. Additionally, China’s proximity to major markets in Asia and the West makes it an attractive destination for businesses looking to tap into these markets.
5. Vietnam
Vietnam has become a popular destination for outsourcing in recent years. The country has a large and growing population of highly educated and skilled workers, as well as a relatively low cost of labor. The country is particularly well-suited for manufacturing and engineering services, and has a growing IT and BPO industry. Additionally, Vietnam’s proximity to major markets in Asia makes it an attractive destination for businesses looking to tap into these markets.
6. Malaysia
Malaysia is another popular outsourcing destination in South East Asia. The country has a strong pool of highly educated and skilled workers, as well as a relatively low cost of labor. According to a report by the Malaysia Digital Economy Corporation (MDEC), the IT outsourcing industry in Malaysia is expected to reach $16 billion by 2025. Malaysia is particularly well-suited for manufacturing, engineering, and other technical services. Additionally, Malaysia has a growing IT and BPO industry, and is known for its high productivity and low turnover. The government of Malaysia has been very supportive of the IT industry and has implemented policies to attract more foreign companies to outsource their services to the country.
In conclusion, South East Asia is a popular destination for outsourcing services, with India, Bangladesh, the Philippines, China, Vietnam, and Malaysia being the top outsourcing countries in the region. These countries offer a skilled workforce, lower labor costs, and proximity to major markets in Asia and the West. Additionally, the countries have strong IT infrastructure, with a large pool of highly educated and skilled workers, and a growing IT and BPO industry. Businesses looking to outsource services should consider these countries as potential destinations, as they offer a range of benefits that can help them cut costs and improve their bottom line. As the outsourcing industry continues to evolve and grow, it is expected that these countries will continue to be major players in the outsourcing market.
