Global Sourcing Index: A Guide to the attractiveness of offshore locations

Introduction

The Orbys Global Sourcing index provides procurement professionals, CIOs and CFOs with a tool comparing fifteen countries terms of their attractiveness as a sustainable base for lower-cost services provision according to 19 metrics that determine scores for three key parameters: business conditions, human resources and infrastructure.

Scope

• An index of 15 countries comparing the strengths and weaknesses for provision of offshored services.
• Enables benchmarking of different offshore locations on a set of standardized metrics that are consistent and reliable.
• Built upon data gathered from various authoritative national and international sources and weighted to reflect common client priorities.
• Targeted at clients, vendors and national outsourcing associations wanting to compare the suitability of offshore locations.

Highlights

Unlike many other available indices, the Orbys Global Sourcing Index rates countries not only on their ability to provide low-cost skilled labour, but also on their political and economic stability, legal system strength, infrastructure risks, and threat of future labour cost rises, as well as the ongoing education and training of labour.

For this reason, Brazil, Russia, India and China (the so-called BRIC countries) do not score particularly highly in the Orbys Global Sourcing Index, despite the fact that these countries are regularly perceived to be potential 'hotbeds' of offshore outsourcing capability.

Conversely, the Czech Republic, Hungary and Poland all score well in all three key parameters of the Orbys Global Sourcing Index, highlighting the strength of their education systems and stable political, economic, legal and infrastructure capabilities.

Reasons to Purchase

• Enables you to compare and evaluate the business, human resources, and infrastructure environment of different offshore locations.
• Looks beyond just labour costs when helping you to identify key strengths and weaknesses of different offshore locations.

Table of Contents

Overview 1

• Catalyst 1
• Summary 1
• Methodology 1

Executive Summary 2

• An index that brings the balance back towards economic and infrastructure stability 2
• BRIC countries score lower than might be expected 2
• Central European countries and Malaysia score surprisingly well 2

Table of Contents 3

Table of figures 4

Table of tables 5

Orbys' Global Sourcing Index 6

• A valuable tool for assessing the relative attractiveness of outsourcing markets 6
• Three key parameters for assessing a country's potential as an offshore location 7
• Nineteen sub-categories underlying the three key parameters of the Global Sourcing Index 7
• Business conditions 7
• Human resources 8
• Infrastructure 9
• Supplementary key data 10
• Application of weighting to Index scores 12

Total attractiveness by country 17

• Business condition scores by country 18
• Human resources by country 19
• Infrastructure by country 20

APPENDIX 22

• Supplementary data 22
• Methodology 24
• Ask the analyst 24
• Datamonitor consulting 24
• Disclaimer 24

List of Tables

• Table 1: Weighting as applied to Orbys Global Sourcing Index scores 13
• Table 2: Unweighted index scores for Asia-Pacific and Americas 14
• Table 3: Unweighted scores for Europe, Middle East and Africa 15
• Table 4: Weighted scores for Asia-Pacific and Americas 16
• Table 5: Weighted scores for Europe, Middle East and Africa 17
• Table 6: Supplementary data for Asia-Pacific and Americas 22
• Table 7: Supplementary data for Europe, Middle East and Africa 23

List of Figures

• Figure 1: Total attractiveness by country (weighted) 18
• Figure 2: Business condition scores by country 19
• Figure 3: Human resources by country 20
• Figure 4: Infrastructure by country 21