Eight Asia Pacific countries are in the top 20 offshore location in Global Services Location Index 2016 report by A.T. Kearney, London based global management consulting firm.
In the report A.T. Kearney ranked 55 countries based on 3 categories: financial attentiveness, people skills and availability, and business environment. India and China continue to take the first two spots. High-scoring countries in Asia Pacific typically show strong performance in financial attractiveness and people skills and availability. Latin America and Eastern Europe both have five countries in the top 20. Latin American countries show strong performance in people skills and availability while Eastern European countries are scored highly in business environment.
Southeast Asia includes both established countries, such as Malaysia and the Philippines, and emerging countries like Indonesia, Thailand and Vietnam. Since last year, the ranking of Vietnam has been up 1 level to the 11th position while other 4 countries Malaysia, Indonesia, Thailand and Philippines are unchanged and take the position 3, 5, 6 and 7 respectively in the index list. Thanks to their low costs, Southeast Asian countries score very high in financial attractiveness, except Malaysia score 2.75, all other 4 countries’ scores are higher than 3.
Southeast Asian countries have been improving the business environment since the last report. Comparing the score in GSLI 2014 and GSLI 2016 reports, except Thailand remains the same; other four countries have improved their business environment score. Vietnam score has been increased from 1.10 to 1.22. For people skills and availability, both Vietnam and Thailand have improved their score since 2014. Please refer to the following table for detail.
Robotic Process Automation
This year report robotic process automation (RPA) will disrupt the service economy over the next decade. RPA can help companies save between 25 and 50 percent in select back-office processes. "For the first time, we have a trend - automation - that could displace the leadership of the likes of India and China in outsourcing. Technology's relentless progress continues to transform in unanticipated and fundamentally different ways not only where work is moving to, but how and by whom - or by what - it is being done," said Arjun Sethi, global leader of A T Kearney's strategic IT practice.
Please visit the following pages for the detail information of the report: