Offshoring and Outsourcing Hot Spots – Where is the Value for Money?
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Here at oDesk, we love crunching numbers. As a global marketplace with over 250,000 service providers in over 100 countries, we have tons of fascinating data we use to see who is up to what kind of work, where they are doing it, and how well they are getting it done. In our latest analysis, we tried to determine which of our top 10 countries offer the best “value for money” based on the average hourly rates and average feedback scores of their providers:
Now, to be sure, this analysis is very simplistic and must be taken with a healthy grain of salt. There are many factors to be taken into consideration when hiring contractors to your workteams, and the country where they reside is only one factor.
However, the analysis uncovered some interesting findings for our top 10 countries:
- Outsourcing to Philippines and Bolivia may give buyers the “best value,” as those countries have high feedback scores and lower hourly rates.
- You “get what you pay for” by Outsourcing to Russia, Ukraine, the United States, the United Kingdom, and Moldova. Providers from these countries are more expensive, but also have higher average feedback scores .
- You also get what you pay for by Outsourcing to India and Pakistan, as these countries are cheaper but have lower feedback scores.
- Finally, it seems that Outsourcing to Canada may be a slightly overpriced, as the provider rates there are higher than their feedback scores.
Again, this analysis is overly simplistic and done mostly just for fun. But it does open up an interesting topic for discussion. What does your experience tell you? What countries do you like outsourcing to? Let us know!
suhas katti
November 4th, 2009 at 4:53 am
Outsourcing to India is definately cost effective and there is good value for money. India with its highly educated workforce, strong English skills makes it a better bet to outsouce business to. Phillippines & CIS countries can come a distant second to India in terms of outsourcing. As regards to countries like US, Canada & other developed nations; these are expensive; thus negating the basic principal of outsourcing viz. to reduce transaction cost & provide quality services. Suhas Katti.