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Top Countries For Outsourcing

Top Countries For Outsourcing (By Region)

In plain terms, outsourcing means transferring specific functions of a business to a third party for execution. The third party may be an individual or another firm. They are responsible for the administration and performance of the business functions or tasks required of them, and effectiveness is measured using performance metrics.


Outsourcing has become the logical option for most US-based firms, ranging from startups to multinational corporations, because it allows them to focus resources on other vital competency processes such as advertising, billing, and customer relations. North America is home to many of the world's top outsourcing countries, and US companies derive excellent value from it.


The USA benefits from lower-cost imports by outsourcing American businesses to both nearby and offshore countries with practical skills and wages. Investing in these nations creates employment for the unemployed and underemployed, improving their quality of life and local economy. As their economies strengthen, countries can better participate in the global market and purchase more American products. In the end, it’s a winning situation for the businesses, the customers, the outsourced agents, and even so far as the global economy.


When firms decide to outsource within their country, it is called onshore outsourcing. Similarly, nearshore outsourcing is when companies outsource with a third party that is outside of the country, but nearby or in a similar time zone. Offshore outsourcing is when outsourced business processes are handled by third-party firms in a distant country.


Each region and country has its own performance strengths. We've carefully curated the top outsourcing destinations in Asia, Eastern Europe, Latin America, and the Caribbean. This list is not exhaustive but instead based on top-performing countries in each region.

Asia

Asia has remained a popular outsourcing destination for western businesses over the last several decades. In addition to increasingly affordable wages, Asian cultures typically offer a working proficiency in the English language, making partnerships easier to manage.


A bonus of outsourcing to Asian countries is the difference in time zone, which provides the unique advantage of your outsourced work being completed after Western work hours. Although the COVID-19 pandemic brought business to a halt, causing an Asian unemployment surge to 6.7% in 2020, the region overall is on a steady path to recovery and maintains committed efforts to making businesses thrive.

India

India has a vast labor pool of over 671 million individuals available to service various outsourcing tasks. Companies that move operations to India are met with an array of talent options at a minimal cost.

  • Wages in India are approximately 10% of what is typical in North America. This is not a one-size-fits-all solution though, as it highly depends on what a given company’s needs are, and extreme cost savings should still be approached with caution. 
  • Indian initiatives such as the Special Economic Zones (SEZ), Software Technology Parks (STP), and the Indian IT Task Force position the country to utilize its skilled human resources in handling complex production tasks with ease.

The Philippines

With almost five decades of US colonization, it is no surprise that western culture is deeply entrenched in the Philippines. Filipino citizens are fluent in English, and they have one of the broadest populations with an acquired American accent. For this reason, western firms are usually very comfortable doing business here.

  • The Philippines has an outstanding 98% literacy level amongst its youth, and the quota of its workforce with an advanced education stands at 63%.
  • The difference in time zone between the U.S. and the Philippines prevents any production lag time, since Filipino businesses are working while Americans are asleep. 

Malaysia

When Intel launched its manufacturing and assembly operations in Malaysia in 1972, it was not for lack of options but rather to take advantage of skilled labor and favorable government policies. For over 50 years, the country has churned out professionals in the finance and IT sectors with robust IP laws and copyright protections, ensuring all innovative products are secured.

  • Malaysian English proficiency is second only to the Philippines amongst other Asia-Pacific countries.
  • The country is a hub for content creation and production due to the deregulation of trade and investment. Almost 40% of all jobs are tied to export activity. 

Vietnam

According to an A.T. Kearney Outsourcing Survey Published in 2019, Vietnam is the fifth most preferred outsourcing destination. Vietnam has strategically situated itself as an alternative to China in terms of low-cost labor and a skilled pool of professionals. The government has also proven to be immune to the instability and internal conflicts plaguing other countries around the globe.

  • The same party has been in power for over 30 years, providing political stability and charting a course for growth and infrastructural developments evidenced by a steady GDP growth over the decades.
  • According to The European Business Review, outsourcing to Vietnam is 90% cheaper than papying wages in the US without sacrificing the value of your funds.
  • The country has a literacy rate of 95.4% and a youthful population, as over 65% of the country's population is under the age of 40.

Eastern Europe

Eastern European countries have production advantages over their western counterparts. Although skilled labor here might cost more than in Asia, there is still a 50% discount in wages compared with North America and Western Europe.


Current research suggests that the south of Eastern Europe has a staggering youth unemployment rate of 48%. Additionally, several of these countries are widely known for various strengths and in-demand skills. Cultural similarities, English proficiency, and an emerging labor market are other key reasons why Eastern Europe is a sought after outsourcing destination.

Poland

Poland is renowned for being a major software and IT outsourcing market. The country provides western firms excellent content production and fulfills service needs by combining high-level technical expertise with reduced budgets, without sacrificing quality.

  • Bound by strict EU standards on IP protection and data security, Polish software engineers are capable of executing all programming needs from planning and design to implementation.
  • Poland has resilient and stable government policies that led to 2.3% GDP growth in 2021 Q3 despite a sharp dip the previous year as a result of the COVID-19 pandemic.
  • With a median age of 42 years, the Polish workforce is largely saturated with matured and experienced minds.

Bulgaria

Good work ethics and a vast talent pool were critical for HP to employ Bulgarian developers in it's computer systems design team. Bulgarians are actively involved in information technology development teams, completing outsourced tasks.

  • By 2022, the outsourcing sector will constitute 8.9% of the country's GDP.  
  • Lower wages, high work quality, and a great English language proficiency have proved very helpful in attracting foreign work orders.
  • The Bulgarian government provides crucial support to the outsourcing industry, including tax waivers for software development companies, amongst others.

Romania

With a high level of technical proficiency, Romania can be seen as the Silicon Valley of Eastern Europe. Outsourcing software development and web development tasks to IT specialists in Romania is relatively smooth. The country is especially attractive due to it's proficiency in English, Romanian, Hungarian, and French. 

  • The country is home to one of the most skilled sets of IT specialists in Europe.
  • Although expertise does not come cheap, hourly rates in Romania are still a fraction of rates in the US and Canada.
  • The country's stable political framework led to it's GDP contraction of 3.9% in 2020, one of the lowest in Europe. 

Latin America

The Latin American labor force consists of 57.2% of the working-age population.  A.T. Kearney Global Services Location Index states that the Latin American business environment is well suited for western businesses, and consistently ranks Latin American countries among the top outsourcing destinations.

Argentina

Since the devaluation of the Argentine Peso, the country's economy has taken an upward movement with steady growth in its GDP. This is in part due to relevant government policies that create a conducive work and business environment.

  • Their position is strengthened by competitive wages, often offering cheaper hourly rates than eastern Europe.
  • During Daylight Savings Time, the nation is just two hours ahead of the East Coast and five hours ahead of the West Coast, making real-time conversations more straightforward.
  • The country also has a large creative workforce that is competitive on the international production stage, especially in the software development market.

Brazil

As the most populous nation in South America, Brazil provides an excellent location for delivery facilities to service customers across the continent successfully.

  • The labor force participation rate is 61.9%, and almost 93 million people have jobs. 
  • The country has a good education system and skilled labor base. The University of Sao Paulo was ranked 1st in Latin America by the Best Global Universities ranking.
  • The multilingual workforce is well suited for business process outsourcing (BPO) services, and the government incentivizes these individuals through tax breaks and other financial aids.

Mexico

When it comes to cost-effective labor, Mexico has a significant edge. This country also presents reduced travel expenses. 

  • Vital communications are done in real-time as a result of sharing U.S. working hours.
  • The general cost of living in Mexico is way lower than most US cities, and wages are 60% lower. However, it does not impact the quality of the workforce available.
  • The country has heavily invested in STEM education, with universities producing 110.000 engineering graduates each year.

Caribbean Countries

The first Outsource to the Caribbean Conference, OCC, had participants from over 20 countries involved in over 160 industries, including more than 300 BPO leaders from the US and Canada. The Caribbean nations have positioned themselves as a force to be reckoned with amongst outsourcing companies, attracting business process outsourcing firms.

The region currently has the presence of Western businesses such as IBM, Microsoft. A creative mix of 30 countries offers native multilingual speakers of French, English, Dutch, and Spanish. According to Outsourcing Journal, the region has a high unemployment rate of 15% in the mainstream islands coupled with a young and vibrant youthful population, making it an excellent destination for outsourcing needs.

Bahamas

Tax advantages are a major benefit when it comes to doing business in the Bahamas. As western businesses outsource tasks to the Bahamas, they do not have to pay taxes. The only fees required from the government are property and stamp taxes, licensing costs, and import tariffs. Their native English-speaking workforce is culturally in tune with the USA due to American influence in their business and tourism.

  • The government is committed to attracting foreign business with an open business climate available through the Bahamas Investment Authority.
  • The median age of Bahamian residents is 32.3, providing an agile and youthful work team.
  • The US Department of State revealed that the Bahamas performs more than 85% of its international trade with the US.

Jamaica

As a western firm, outsourcing jobs to Jamaica means no communications or cultural differences as Jamaicans are fluent in English since the language being an official language in the country. Jamaica is the Caribbean's largest English-speaking territory, giving companies looking to outsource in the area a competitive advantage.

  • The trainable workforce currently stands at 1.3 million people.
  • The country has a cutthroat advantage over it's peers due to the government's creation of regulatory systems tasked with setting friendly policies. 
  • The Inter-American Development Bank recently announced a decision to support the development of a pipeline of BPO talent in Jamaica with $15 million.

Dominican Republic

The Dominican Republic is a member of the CAFTA group. The country is located between the eastern and western Caribbean regions providing a central trade link. 

  • With a population of 10.9 million and a GDP of $88 billion, the Dominican Republic has an extensive network of free trade zones.
  • The country offers additional tax incentives for foreign business endeavors in certain areas.
  • The country has continuously attracted foreign investments with steady GDP growth, and FDI into the Dominican Republic has increased more than tenfold over the last two decades.

To Sum Up

As the world gradually continues to recover from the effects of the pandemic, the economies and GDP of countries are also beginning to improve, some faster than others. Outsourcing is key to this recovery as it is vital to global trade, provides affordable quality labor, and increases the purchasing power of outsourcing destinations. The regions discussed are the central hubs of outsourced jobs and have proven beneficial to the American economy and consumers. 


If your company is in the market for a BPO partner, fill out a contact form today. We’ll assess your business strategy and provide you with a comprehensive quote, recommendation, and connection to the best partner(s) for your needs, wherever that may be.


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