Source: www.atkearney.com


Abstract

Movingoperations to low-cost countries offers a variety of advantages-from reducedwages for qualified workers to historically lower costs for businesses. Thequestion is, are these advantages short-lived? Already, for some locations, theincreasingly heated competition for talented and skilled workers has resultedin a rise in wages and attrition rates.


Findings in the 2007 A.T. Kearney Global ServicesLocation IndexTM reveal that the relative cost advantage of theleading offshore destinations has declined almost universally. Nearly everycountry in the Index, even those that fell in the rankings, improved their absolute scores, thus confirming that competition among low-cost countries isintensifying. Increasingly, simply maintaining current performance levels is nolonger sufficient for countries that want to attract (and retain) thefast-growing remote services business. In addition, this years findingssuggest that while the wage advantage of offshore locations will continue for20 or more years, this advantage will diminish as demand for skilled workersincreases in offshore locations around the globe.


Now in its fourth year, the Global Services LocationIndex, or GSLI, analyzes and ranks the top 50 locations worldwide that provide the most common remote functions, including IT services and support, contact centers andback-office support.


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Originallypublished at www.atkearney.com




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