Anna Frazzetto's Blog

Digital Innovations and Technology Solutions

India's Peaking But We've Only Just Begun in Vietnam, Indonesia, Brazil,....

It's a New Year and a new day for outsourcing and offshoring. Everywhere you read these days, outsourcing experts a trying to identify the "peak talent" moment for India or the point when there are no longer enough skilled professionals in the Indian marketplace and salaries are rising too fast due to make outsourcing to India cost effective. In my opinion, we have hit peak talent in India now that salaries are rising 12-20% annually and several companies are noting talent recruitment challenges.

Who ever would have thought a country of more than 1.1 billion people could have a workforce shortage? Plenty of savvy business folks. For example, Vietnam's largest information technology firm, FTP has committed itself to building an IT university near Hanoi that will be 50,000 students strong. Knowing that the world is in need of more than IT solutions, this Asian IT leader is working to build the IT workforce as well. FTP's forward-thinking approach to talent challenges is likely one of the key reasons private equity group Texas Pacific Group and Intel Capital, a unit of Intel Corp., bought a 10% stake in the company. Harvey Nash has been in Vietnam for seven years, and it's very exciting to see big companies like Intel and Microsoft identify it as one of today's most dynamic technology hubs and a deep source of world-class IT talent.

As businesses widen their BPO scope beyond and seek out new opportunities, they are rapidly turning to emerging outsourcing locations like Vietnam, Indonesia, The Philippines, Pakistan, Egypt and Brazil. Those are the new outsourcing entrants to watch.