When you hear 'Asia,' you might think of anime, Kpop culture, and people who look younger than their age (probably Japanese people). But do you know that Asia also has a long list of prominent outsourcing countries around the world? Well, we listed them down in this article so you can assess the best outsourcing countries to consider in the future. The only caveat to keep in mind is that all of them could be a good choice. Hopefully, you can find the best country that gives you value for your money.
Top Outsourcing Countries to Offshore in Asia
No doubt that some of the top outsourcing countries in the world can be found in Asia. In fact, many foreign countries prefer to outsource in Asia for many reasons. One of them is the labor cost, which is far lower than in Western countries.
If you're planning to move some of your business operations to Asia, here's a list of leading outsourcing countries to choose from.
Philippines
First on the list of the top outsourcing countries in Asia is Philippines. The Philippines has carved out a name in the BPO industry as the call center capital of the world, mostly as a result of the country's success in providing high-quality contact center solutions.
Outsourcing companies in the Philippines provide cost-effective, top-notch, round-the-clock services that yield good outcomes. They take the lead in handling services in design and marketing, as well as customer support, accounting, and eCommerce.
The Philippines continuously impresses global leaders as one of the best outsourcing countries because of its educated workforce. The country's youth literacy rate is 97.94 %, and English proficiency is 94 %, with 70 % of the population speaking the language fluently.
Apart from its strategic location and efficient labor practices, its government supports the industry by facilitating infrastructural and policy growth. This includes collaborating with institutions to develop a BPO-specific curriculum and establishing the Philippine Economic Zone Authority (PEZA) to help foreign investors conduct business in the country.
Due to its competitiveness, major companies that outsource to the Philippines include Google, Amazon, Microsoft, and Samsung.
India
No one can rule India out when it comes to developing software solutions. India, being of the the strongest outsourcing countries, known as the world leader in software outsourcing, has the biggest number of technology specialists of any country in the world.
The Indian software industry has the necessary specialized knowledge and qualified software developers. They have IT clusters in Bangalore, Gurgaon, and Hyderabad. Technical support, software development, and website & mobile app development are some of the most often outsourced services in this country. Companies that outsource to India include Ford Motors, CISCO, and IBM.
The National Association of Software and Service Companies (NASSCOM) estimates that India's IT industry will generate $350 billion in revenue by 2025, making it one of the world's best outsourcing countries, fastest-growing economies, and a desirable investment location.
If you're thinking of where to outsource IT-related services, India could be one of the best options.
China
China has one of the world's largest pools of highly skilled workers that's why they are one of the outsourcing countries that businesses can consider. Over the years, China has become a manufacturing hub for several global companies due to its robust business environment, lack of regulatory compliance, minimal taxes, and attractive currency practices.
For labor-intensive sectors, China's cheap labor costs are a big selling feature. The average monthly wage in China is 29,300 Chinese Yuan (CNY), which is nearly half of what it is in the United States (roughly $7,900).
According to industry analysts, businesses that outsource to China can save anywhere from 30 to 80 percent on labor expenditures, depending on the product's labor intensity. To sum up, American companies that outsource to China include Amazon, Apple, and Pfizer.
If you're wondering where to outsource low-cost product manufacturing, China is one of the top choice outsourcing countries. This country can produce low-cost products at a significantly faster rate than its competitors.
Vietnam
Vietnam has started to enter the outsourcing market, competing alongside other outsourcing hubs in Asia. In fact, Vietnam has recently gained a reputation as a new outsourcing paradise for software development, making it one of the best outsourcing countries that businesses can consider.
It may not be on par with the Philippines and India, but Vietnam holds a lot of promise as one of the optimistic outsourcing countries in Asia. With its growing number of IT engineers and competitive IT talent pool, this country could be the next center of software development in Southeast Asia.
In 2017, Vietnam moved up five places in the Global Services Location Index, from 11th to 5th, putting it in the top 55 most promising nations for Global Outsourcing Services. In addition, many IT businesses from other industrialized countries, such as Japan and Australia, have already established offices in Vietnam and hired software professionals to work on their projects.
While it is home to some of the world's greatest software developers, Vietnam's economy is still in its early stages and lagging behind other developed countries. However, it's one of the top picks outsourcing countries of foreign companies eyeing high-quality IT works at a reasonable price.
Certainly, companies that outsource IT services to Vietnam are US tech giants like Intel, IBM, and Microsoft.
Thailand
Known as the largest automotive exporter in Southeast Asia, Thailand is also one of the promising outsourcing countries and players in the outsourcing industry. Apart from manufacturing, it's succeeding in the IT industry despite its infrastructure and ICT research facilities challenges.
Companies that have successfully outsourced to Thailand include Samsung and Ford. In addition, because of Thailand's generous incentives to stimulate private investment, an increasing number of companies in the automation industry are relocating their operations there.
Being one of the contending outsourcing countries in Asia, Thailand promises foreign companies incentives such as a 50% reduction in corporate income tax and additional tax allowance on net profit within ten years. In other words, Thailand is indeed committed to making its outsourcing industry attractive to foreign investors and manufacturers.
Moreover, Thailand makes it easier for new business partners to register their companies. As a result, Thailand has a higher ease of doing business than other offshore outsourcing leaders like Taiwan and Hong Kong.
However, Thailand has long been far behind many of its Asian neighbors in terms of English proficiency. Thus, Thailand barely penetrates the call center industry and competes against traditional outsourcing heavyweights like the Philippines and India.
Indonesia
Finally, Indonesia—the world's fourth most populated country also made it on the list of the best outsourcing countries. While considered Southeast Asia's largest economy, Indonesia had a rocky start when it came to outsourcing.
Outsourcing has long been a contentious subject among Indonesian labor groups. Thousands of workers came to the streets around the country in 2013 to demand that businesses cease employing outsourcing companies and ensure that all of their employees receive benefits.
Furthermore, Indonesia used to have complex labor laws that prohibited corporations from outsourcing core jobs and only allowed them to outsource five types of non-core work: cleaning, security, driving, catering, and mining support services.
In 2019, the Indonesian Minister of Manpower amended the regulation on The Requirements for Outsourcing. Instead of putting restrictions on outsourcing certain types of work, the new labor law requires companies to have a proper business license to carry out outsourcing activities.
To date, Indonesia is an attractive and one of the best picks outsourcing countries for companies that outsource jobs related to HR functions. In addition, some PEO providers in Indonesia offer comprehensive back-office services such as accounting, health insurance, and benefits administration.
Where to Outsource: KDCI Outsourcing
Aside from being one of the best outsourcing countries globally, you probably heard that Filipinos are also respected for their hard work and work ethics. Do you want to experience working with Filipino professionals? You can consider working with us to start hitting the ground running.
KDCI is a leading offshore staffing company based in the Philippines with a growing client base. We offer scalable outsourcing services in creative design, digital marketing, and eCommerce. We have delivered unparalleled services across various industries and have worked with some of the big brands out there, such as Apple, Canon, and Dell.
Are you interested to learn more about our services? Then, click the button below to have a FREE consultation with one of our client success managers today!
