Tholons, a leading advisory firm for Global Outsourcing and Investments, conducts a study on the most favored outsourcing destinations every year. The report for this year has also been released by the firm.
According to the company, high-quality research is very crucial in framing effective decisions, in today’s environment. The report released this year contains a few new entrants like Managua [capital city of Nicaragua], and Gautemala. Philippines and India feature in the top 10 of the list with Bangalore being named as outsourcing capital of the world.
Entry of Managua
Managua has now become a favorite outsourcing destination and its entry into the Tholons’ 2013 index shows its competence in the BPO sector. The capital city is equipped with adequate infrastructure facilities, a skilled workforce, and competitive cost. In addition to this, an attractive geographical nature is also in favor of Managua.
Managua is placed 95th in the list of Tholons’ list of top 100 outsourcing destinations in the world. The city is a recent entrant to the list of Tholons’ 2013 index. It is placed one spot above Gautemala city, which is also a new entrant in the list. Surprisingly, two most competitive outsourcing destinations of Nicaragua, El Salvador and Honduras did not make it to Tholons’ rank list. However, Nicaragua is now on the outsourcing map and is getting its share from the industry.
Costa Rica is the only country from Central America to make it to the list and ranks 15th, among other outsourcing destinations. It is also seen that Costa Rica has moved 5 spots in ranking compared to previous year.
The countries which featured in the top 10 outsourcing destinations were Philippines and India. Philippines occupied the 8th spot, whereas Bangalore in India was crowned the outsourcing capital of the world. The challenge now for new comers would be to improve on their perceptions abroad and the countries seem to be working on it.
Tholons’ also warns that the countries need to create a facilitative work environment to maintain the spot. Currently, Nicaragua is facing political instability while Gautemala is challenged with natural risk perceptions.
Having featured in the list of top 100 is an indication that Nicaragua is getting right attention globally because of the investment opportunities the companies see in the country. The country has several advantages when it comes to global competitiveness, one of the main advantages being, its geographical location, near to US, the greatest outsourcing destination.
In addition, the country’s young and vibrant work force who speaks quality English also comes to its advantage. Cheap labor costs and tax incentives are also an attraction.
To stay competitive in the market, Managua has to make itself an attractive destination by meeting the growing demand for bilingual personnel to fill its call center vacancies. The Government is also taking several measures to build capacity aimed at finding and training a young workforce.