10 riskiest outsourcing locations

[VelMurugan]

10 riskiest outsourcing locations

For long India has been considered as the world's top outsourcing destination. Not any more it seems. A latest study by Black Book of outsourcing on top 25 riskiest locations for outsourcing has as many as eight Indian cities. The reasons given are broadly terrorism, pollution and geopolitical issues.

A separate Black Book of outsourcing study (released simultaneously) lists 25 safest offshoring locations. Incidentally, not even a single Indian city figures in the safest list.

Here's over to the top 10 riskiest outsourcing destinations (starting from no. 1).

Source : indiatimes

[VelMurugan]

Bogota, Colombia

Capital city of Colombia tops the list of riskiest outsourcing destinations according to Black Book of Outsourcing. Corruption and organized crime are at the highest in Bogata. The country's unstable currency is also regarded as a reason why companies may find it going tough.

Other issues that Black Book Outsourcing highlights are transnational & geopolitical, unsecured & unprotected networks, infrastructure, technology & telephone and terrorist or rebel target threats.

Besides these, uncontrolled environmental waste and pollution and legal system immaturity also form part of reasons why companies may not consider Bogato as an ideal outsourcing location.

[VelMurugan]

Bangkok, Thailand
   
At no. 2 on the riskiest outsourcing destinations list is Thailand's Bangkok city. Country's unstable currency, unsecured & unprotected networks, infrastructure and immaturity of the country's legal system are the factors that make the city a risky destination for outsourcers.

According to Black Book pf Outsourcing, Bangkok also has a high corruption and organized crime rate. Some other reasons that make it not-so ideal outsourcing destination is uncontrolled environmental waste & pollution and terrorist threats.

[VelMurugan]

Johannesburg, South Africa

The largest city of South Africa, Johannesburg, is at the third spot in the list of riskiest outsourcing locations. The organised crime rate and the number of policemen per citizen are the prime concern areas. South Africa's currency instability and corruption and organised crime are other risk factors.

Other reasons like immaturity of legal system and uncontrolled environmental Waste & pollution are reasons why companies may not find it an ideal location.

[VelMurugan]

Kuala Lumpur, Malaysia
   
Next city on the riskiest locations list is Kuala Lumpur, the capital city of Malaysia.

High level of unsecured & unprotected networks, infrastructure, technology & telephone, uncontrolled environmental waste & pollution and immaturity of country's legal system are factors that make the city not-so outsourcing unfriendly, according to BlackBook.

The country is seen as risky destination mainly because of environmental issues. Terrorist and rebel target threats can be dissuading factors for outsourcers.

[VelMurugan]

Kingston, Jamaica

Climatic conditions, legal system and unsecured networks and infrastructure are the reasons that make Jamaican city Kingston a risky destination for outsourcing. The capital city of Jamaica has an undeveloped legal system.

Among other reasons pointed out by Black Book of Outsourcing are corruption and organized crime, unstable currency and unsecured & unprotected networks infrastructure, technology & telephone.

[VelMurugan]

Delhi/Noida/Gurgaon, India

India's one of the biggest commercial hub Delhi/Noida/Gurgaon (NCR) is also risky destination for outsourcing firms, according to the study. The reasons cited include transnational and geopolitical issues. Threat of rebel and terrorist activities in the NCR are biggest concerns.

Unsecured & unprotected networks, infrastructure, technology & telephone, uncontrolled environmental waste and pollution are some other factors mentioned.

[VelMurugan]

Manila/Cebu/Makati, Philippines

The capital city of Philippines, Manila, is the seventh riskiest outsourcing location. Like India, Philippines too has more than one city on the list. According to Black Book of Outsourcing, extreme weather conditions and high corruption and organized crime rate makes Manila/Cebu/Makati risky offshoring destinations.

Uncontrolled environmental waste & pollution and terrorist activities are other factors.

[VelMurugan]

Rio de Janeiro, Brazil

High crime rate and a low ratio of policemen vs citizens in Rio de Janeiro, Brazil's capital city, makes it a risky outsourcing location.

Other reasons that make it a not-so-friendly outsourcing destination are immature legal system, uncontrolled environmental waste and pollution and corruption.

[VelMurugan]

Mumbai, India
   
Next on the list is India's financial capital Mumbai. The city that is home to one of the world's top ten trade centres is at no. 9 on the riskiest offshoring locations list. Terrorist and rebel activities are rated highest among the concern areas. The terrorist attacks in the city last November have made terrorism a grave concern.

Other reasons cited by Black Book of Outsourcing are: transnational and geopolitical issues, uncontrolled environmental waste and pollution and weather and climate hazards.

[VelMurugan]

Jerusalem, Israel

At no 10th on the riskiest outsourcing list is the capital city of Israel, Jerusalem. The largest city of Israel in both population and area is a victim of terrorist threats. Other reasons include transnational and geopolitical issues. According to Black Book, Jerusalem also has high level of local strife and obstructive forces to capitalism.