Taiwan is frequently associated with its powerful and domineering neighbor, China. Taiwan does however have its own unique identity that is inextricably connected to manufacturing hardware. Taiwan, as it is well-known manufactures and designs electronics and hardware parts. With a turnover of nearly $500 billion, Taiwan always has been the world leader in the field of electronics and hardware manufacture.
It is not surprising then that Taiwan is looking at outsourcing as the perfect entryway to the world of software. With a second to none knowledge of the working of hardware, Taiwan has the technical know-how chalked out perfectly. What then is restraining the country from plunging into the fascinating world of BPO?
Next to the hardware manufacturing Taiwan is well-known for being a nation that is not well versed in the English language. This lack of familiarity with the language has held Taiwan back sufficiently in the outsourcing arena.
China and India have not been particularly fluent in the English language. The nations have however leapfrogged over the misgiving and created a unique niche in the outsourcing market. Taiwan can use the experience that China and India have faced to step over the gap that the lack of language proficiency has created.
Apart from the language, Taiwan has commendable infrastructure resources. Although China also has well established infrastructure, it is unable to co-ordinate sustainability with growth. With the economic policies and the political environment in Taiwan being conducive to the hardware manufacturing arena, stepping through to the software domain will be effortless.
Economic Scenario in Taiwan
The economic conditions in Taiwan have been abysmal to say the least. Given the country’s dependence on the global economy (export of electronics), it is not surprising that the recession has hit Taiwan hard and strong. The unemployment rates have increased to a staggering 5 % which furthers brakes the progress.
Taiwan has been closely associated with China throughout history. This association or hyphenation has caused substantial unrest within the nations. Not many Western countries see Taiwan as being a separate entity from China.
The recent disputes in the South China Sea have made headlines and fueled the dormant unrest that has inherently been there in both the nations. This unrest has become a threat to the businesses operating out of Taiwan. The unrest has also put a hold on the idea of an integration and amalgamation of the two countries for historical and political purposes. Geo-political unrest such as the one raging in China and Taiwan create unrest amidst investors planning or renewing contracts.
The Future of BPO in Taiwan
Taiwan has one major advantage, location. Given the country’s proximity to Hong Kong and China, offshore locations in Taiwan would be but inevitable for many Multi-national companies. Taiwan has capitalized on its position as a world leader in the electronics arena. With the growing need for offshore locations, the country offers a knowledge of the business with an unbeatable location.
Apart from electronics and BPO biotechnology companies are seriously considering Taiwan as a viable location for offshore offices. With the influx of numerous inquiries for offshore companies, Taiwan has the infrastructure and the technical expertise behind running an offshore business. Whether the country capitalizes on the talent pool and cashes in on the incoming outsourcing market is a matter best left to the future.