Outsourcing is a common business practice whereby business owners contract out specific business functions to third-party providers. For entrepreneurs, outsourcing has various benefits, including cost reductions and a better focus on core competencies. However, deciding which country to outsource different operations to is not always an easy decision, as there are many factors involved in the decision. Here’s what some small business owners have to about which country they outsource to.
Where do you outsource to and why?
I outsource mainly to Argentina. It is one of Latin America’s most educated countries with the highest English language proficiency level. The high-quality education system in the country makes it easy to find development agencies with the skilled experts my company requires.
I outsource software development since the country is well suited to collaborating with companies abroad. Argentina is already the best outsourcing location for regular project evaluations in Latin America.
Alex Williams, CFO of Findthisbest
I outsource to Mexico because it has a similar time zone to America. So I don’t have to worry about working weird hours. It helps us collaborate with them better. The best part is that the average monthly salary in Mexico is around $1500 compared to $7000 in the USA. So, outsourcing to this country also helps us save a ton of money.
The fact that there’s not much of a time difference between the USA and Mexico is what makes it easy for us to outsource to this country. We don’t have to worry about miscommunication or waiting for nearly 12 – 14 hours to get an answer from the outsourcing agency. We outsource customer services to Mexico and have had a great experience so far.
Perry Zheng, Real Estate Investor & Founder of Cash Flow Marketplace
We outsource to India because it is one of the cheapest places to offer services. The average salary in India is more than ten times lower than in the US. This makes it an ideal place to outsource services. Compared to other outsourcing countries, India has some of the best techs. Which is an added benefit. We outsource our customer support to India.
Amy Wampler, CEO of Spartan Mechanical
I outsource to Malaysia because of its robust IT sector. Most Malaysians are proficient in the English Language, which makes communication easy. My experience with outsourcing has been limited to Malaysia. It has been sufficient for my company’s outsourcing needs.
Malaysia is an excellent country to outsource to. By doing so, we have minimized the costs of operating and made use of the large skilled workforce that is readily available. Malaysia also has a good ranking on the Ease of Doing Business index, making it the perfect option for us.
We outsource IT services or ITO. This includes but is not limited to software development and IT consultation. The Malaysian IT sector, combined with the labour market, makes it an ideal situation for us.
Patrick Smith, Editor-in-chief of Firesticktricks
Poland is our go-to for outsourcing because it’s considered to be the hub for IT services. With being fully equipped with technology, Poland has generated excellent profits for the tasks we outsource.
Previously, we outsourced to India and the Philippines. It’s relatively easier to outsource work in Poland because they have a stable economy. The main reason for choosing Poland was because Covid impacted its GDP the least. The best part is they have a diverse set of workers who can help us with any service we wish to outsource. Since we specialize in IT solutions, we generally outsource software and data-related tasks.
David Clark, CEO of Basement Guides
My organization is currently outsourcing projects to Chine. We made this decision in order to access the large pool of skill and talent available. Furthermore, its budget-friendly prices helped us become more cost-effective. The language barrier makes it difficult to outsource to China. Only 1.3 billion residents out of 10 billion speak English. We outsource software development to freelance Chinese developers. We hire these developers through a third-party outsourcing agency.
David Lee, Marketing Manager of Neutypechic