Singapore is one of the fastest growing outsourcing markets. Perceived as an ideal location by top BPO companies for setting up their global sourcing operations, Singapore is expanding exponentially in the sourcing sector. The country offers a very conducive business climate, good infrastructure, and close proximity to Asian clients. No wonder, it has been ranked by the US Department of Commerce as the second-fastest growing outsourcing markets in the world.
Many notable corporate firms like Citibank, First Boston, Credit Suisse, IBM, Hewlett-Packard, and Microsoft have set up off shore concerns in Singapore. Despite the fact that it costs at least 30 percent more than a similar hub in India and China, the high-end quality that Singapore can offer in terms of infrastructure and skilled workers is what attracts investors.
Why Singapore’s is a top-class BPO destination?
The history of Singapore’s foray into international trading dates back to 1819 when the British got settled there in 1819. The island nation joined the Malaysian Federation in 1963 and subsequently claimed the independence two years later. The main factors which make Singapore a preferred BPO destination can be summarized as below.
- Government support: The Singapore government is committed to promoting the Singapore as an International hub for BPO resources. They set up Infocomm Development Authority of Singapore, which is a statutory board aimed at “fostering a competitive world-class Infocomm industry in the country.
- Quality of work: Singapore adopts world-class standards to ensure that the services provided are of top quality. The business houses employ talent and skill sets that are required for delivering high-value services.
- Human Resources- With a population of 4.7 million growing at a rate of 0.8 percent annually, the labor force accounts for nearly 3.1 million people. The entire population lives in an urban environment.
- Business Environment – Singapore has a very successful free-market economy, political stability and a very high per capita GDP. The major segment contributing to the nation’s GDP is its exports, mainly in electronics, IT products, pharmaceuticals, and financial services. Singapore’s GDP stands at USD $234 billion and the purchasing power parity is $292 billion.
With its workforce competency and favorable eco-system for the BPO industry, despite the economic crisis, the economy is growing at a steady rate and Singapore is strongly emerging as the preferred outsourcing hub globally.