- Emerging as hot destination for offshoring services
Jordan gains 5 points and features for the first time in the top ten in this year’s Global Services Location Index (GSLI). The GSLI, which is published every two years by international management consulting firm A.T. Kearney analyzes and ranks the top 50 countries worldwide for locating outsourcing activities.
According to the survey, Jordan is emerging as a hot offshoring destination for the world. Jordan’s competitive compensation cost levels and affordable office space in conjunction with low tax and regulatory costs catapulted the country among the top 10 destinations. Home to a well-educated population, with low costs and its proximity to Europe, Jordan has the potential to redraw the offshoring map and in the process bring much needed opportunities for this Middle Eastern country assuming a knowledge based economy. A growing IT sector, decisive work of the Ministry of Telecommunications and the optical fibers project in Jordan document this.
“While cost remains a major driver in decisions about where to outsource, the quality of the labor pool is gaining importance as companies view the labor market through a global lens driven by talent shortages at home, particularly in higher, value-added functions,” said Dr. Dirk Buchta, partner and managing director A.T. Kearney Middle East. “In response, governments all over the world are investing in the human capital demanded by the offshoring industry.”
The offshoring industry has matured over the past decade. IDC, an IT market intelligence company, reports that outsourced offshoring alone has generated $30 billion in revenues and has grown by 25 percent over the past two years. This does not take into account captive centers in low-cost locations operated by companies from developed countries.
“Jordan is quickly developing into an attractive outsourcing location. Initiatives such as the King Abdullah II Development Fund and EDAMA pursue the development of the country at a quick pace. As our IT infrastructure expands, I personally see great potential for Jordan to be a preferred outsourcing hub” commented H.E. Karim Kawar, president, Kawar Group.
The GSLI, which is published every two years by A.T. Kearney analyzes and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.
While India, China and Malaysia retain the top three spots they’ve occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.
The complete results of this year’s Index are provided below. A more detailed analysis and information on regional performance can be found at
www.atkearney.com .
