The top destinations for outsourcing haven’t changed much over the past two years–India, China and Malaysia still make up the Top 3, according to the new A.T. Kearney 2016 Global Services Location Index.
However, in its report, the consulting firm notes that the future holds the possibility for a radical shake-up in the rankings of the world’s Top 55 outsourcing destinations. The two drivers behind this are the continued adoption of Robotic Process Automation (RPA) and the growth of the Business Process as a Service (BPaaS) outsourcing delivery model.
RPA, taking advantage of advances in computing power, aims to automate tedious and repetitive rules-based tasks. With BPaaS, outsourcing providers are looking to share a standard interface with multiple clients–using automation where possible–to deliver services on a large, cost-effective scale.
“Even though the top six or seven countries are landing in the same order this year as 2014, looking forward, this could all change radically because the very nature of what’s being outsourced is changing,” said Arjun Sethi, global leader of A.T. Kearney’s Strategic IT practice and principal author of the study. “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. The new business model associated with this automation threatens established concepts of offshoring, while expanding the market.”
Although Asian countries still dominate the Top 10, Latin American destinations Brazil and Chile have each moved up four places since the 2014 rankings. Mexico dropped four places, but retains a spot in the Top 10 and No. 8.
Top 20 Countries in the 2016 A.T. Kearney Global Service Location Index
14. Sri Lanka
15. United States
19. Costa Rica
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