COMPARATIVE ANALYSIS OF GEOGRAPHIC DESTINATIONS FOR IT OUTSOURCING

Alexander Mechitov, University of Montevallo, Montevallo, Alabama, U.S.A.
Helen Moshkovich, University of Montevallo, Montevallo, Alabama, U.S.A.

Published in

JOURNAL OF ACADEMY OF BUSINESS AND ECONOMICS
Volume 18, Issue 4, p47-56, December 2018

ABSTRACT

These days outsourcing has become one of the widely accepted business practices, especially popular in IT industry. As a result, more developing countries enter this global and very lucrative market. The paper reviews main geographical destinations for IT offshore outsourcing, including three main geographical areas – South-East Asia, Latin America, East Europe, and two big individual players - India and China. The paper outlines their main strengths and weaknesses, including maturity and sophistication of hi-tech labor markets, labor costs, communication, location, and business environment these five regions offer to IT community. The authors also discuss the new recent trends in IT world that will have profound affect in IT outsourcing market. The findings of this paper are of interest to IT managers making outsourcing decisions for their IT projects.

Keywords

IT outsourcing, emerging markets, comparative studies, business environment


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