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Latest offshore services ranking: Here's what you are up against

Gartner has published a new report ranking the top 30 countries that are leaders when it comes to offshore capacity for IT services. You’ll find many of the usual suspects on the list and India is still No. 1, but the research firm has also identified new locations that are emerging as top players for offshore activities — because the cost structure in India is rising.

Here are some of the list highlights (I’m not including every country):

  • Bangladesh, which is rated “very good” for cost structure
  • China, which improved its scores for both political climate and cultural compatibility
  • Indonesia, which carries an “excellent’ rating when it comes to costs but doesn’t do as well for its labor pool, which is rated “fair”
  • Malaysia, which has especially good government support for green IT initiatives
  • Sri Lanka, which comes back to the list after being off for three years
  • Vietnam, which is especially attractive for the size of its young workforce

It is my belief that more U.S.-based IT services companies will be spreading their wings internationally in 2011, as businesses begin investing in IT infrastructure again and look for partners that can address their multinational needs. Seems like it would be good to know where you might experience the most competition — or where you might find the best local partners for your business.

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