As multinational companies (MNCs) continue expanding their global footprint, choosing a location becomes increasingly important. After a services offshoring boom lasting more than a decade, first-wave hotspots are becoming saturated, and MNCs are seeking new destinations. Each region and country offers unique competitive advantages, and in an increasingly complex environment, where one-size-fits-all approaches cannot provide all the information necessary for effective decision making. MNCs need to analyze multiple factors reflecting their specific needs, including firm strategy, costs, talent, business environment and other location factors.

In this article, we first analyze the main trends affecting services offshoring and then present the main results of the Services Offshoring Ranking. Finally, we characterize the primary strengths and weaknesses of different regions, and focus on key countries in each region to provide a deeper understanding of each location.

Among many findings, our concluding remarks show that:

  • “Under-the-radar-countries” are becoming premier locations due to high investments in human capital, while being able to maintain low labor costs.
  • Asia-Pacific emerges as the best offshoring region because of its large high-quality talent pool, low costs and business-friendly economic environment.
  • Middle East and Africa countries are ranked mostly at the lower end of the table, due to challenges related to talent availability and costs, as well as to the economic environment and political instability.

To see country-specific rankings and to know more about MNCs’ services offshoring performance in other regions, download the full report.