India, China, Korea, Indonesia, and Mexico are a favorite outsourcing hub with India as the world best outsourcing hub. Outsourcing involves delegation of work responsibilities from back office, consumer support to software development to a third company which is under a specific agreement (McGuire, 2010). India, China, Korea, Indonesia and Mexico provide high quality and reliable services that are why they are favorite outsourcing hubs. Among these is the most famous and popular outsourcing hub. Outsourcing has benefits to both the host country and to its customers.
The first reason why they are favorite outsourcing hub is because of the high level of information technology (IT). It is important in everything which is being done in today’s world. In addition, the higher the level of IT the better, therefore these countries have been favorite outsourcing hub due to their high level of IT (McGuire, 2010). In addition to this their people are very educated and have a high level of skilled labor.
The second reason is that easy business policies (McGuire, 2010). Their governments have provided favorable and easy policies which favor outsourcing business. Their government put a lot of emphasis on outsourcing business and has aside a department which specifically deals with outsourcing IT implementation (McGuire, 2010). Foreign investors have the permission to own business in these countries. Harsh government policies are the ones which discourage the outsourcing business. Otherwise investors will always go for countries with easy policies.
The third reason better resources which include a good infrastructure, labor, and technical powers (McGuire, 2010) . This means that all the necessary resources required to do outsourcing are available one does not have to depend on more than one country to succeed. The communication, transportation is good and available at affordable prices (McGuire, 2010).
The fourth reason is availability of favorable timing to do the business (McGuire, 2010). The time gap in these countries allows outsourcing business to work full time even with the west. Their time is flexible and easily adoptable.
References
McGuire, J. (2010). India: Why A Favorite Outsourcing Hub? Retrieved on May 13, 2011 from http://www.sooperarticles.com/business-articles/outsourcing-articles/india-why-favorite-outsourcing-hub-41625.html