helping IT vendors pull in more complex projects.
Brazil remains the powerhouse
because of its size and talent supply, but
Mexico is gaining appeal with its highly
trained work force and large English-speaking population. Colombia also
shows potential as more vendors open
up shop and keep prices relatively low.
One downside is that project leaders
have to worry about safety, particularly
in Mexico, which has seen a jump in
killings and kidnappings.
“Many of these new outsourcing
destinations, including Mexico and
Colombia, are doing little in terms
of government initiatives or social
change to allay fears about their safety
as an outsourcing destination,” says
Doug Brown, principal of outsourc-
ing research firm Brown-Wilson Group
Inc., Clearwater, Florida, USA.
Outsourcing is a change process, and you can’t neglect the people side of things. If you have
issues are more
difficult to resolve.
—Brigitte Cobb, BMI Healthcare, London, England
ASIA’S UNTAPPED MARKETS
Amidst Asia’s next generation of
economic power players, Vietnam is
worth checking out for sheer cost savings. Outsourced projects cost from
30 to 50 percent less than in India
or Russia, says Roman Trakhtenberg,
managing director of Luxoft, an IT
outsourcing company in New York,
New York, USA.
“The talent pool is growing, and
there is huge potential for this destina-
tion in the future,” he says. “Vietnam’s
an untapped market.”
It’s also one that’s trying to make a
name for itself in the global outsourc-
ing community. After several years
honing their skills on basic projects,
along with investing in infrastructure
and talent development, Vietnam’s
tech companies are looking to take on
“The vendors are interested in
more challenging projects, which creates some interesting opportunities for
cost-conscious companies,” says Crowe
Mead, PMP, vice president of technical
operations for Calico Energy Services,
an energy management consultancy in
Seattle, Washington, USA.
For all those pluses, though, Vietnam still has a relatively inexperienced
talent pool. Approximately 40 percent
of the population is 23 or under,
according to Oxford Analytica, which
limits the kind of projects a company
may be willing to send there.
“You wouldn’t hire a 22-year-old to
lead a multimillion-dollar project,” says
Pedro Serrador, PMP, president of Serrador Project Management, Toronto,
Ontario, Canada. “If it’s a simple project and you don’t need the most senior
people, then it may be worth trying a