Top 10: Global Outsourcing Hotspots
10.) Colombo, Sri Lanka
Despite having a somewhat unstable atmosphere, Colombo’s geographical location, infrastructural facilities and capable workforce make it one of the top outsourcing hotspots in the world. Colombo’s citizens possess strong English skills, making it a viable destination for financial, telecommunication and healthcare outsourcing. Labor costs can be cheaper than India, adding to the intrigue.
9.) Ho Chi Minh City, Vietnam
One of the fastest-growing outsourcing hotspots in the world, Ho Chi Minh City specializes in application development and maintenance outsourcing. The country’s language skill-set also helps draw businesses to outsource here, as Ho Chi Minh City has groups of people who are fluent in English, French and various dialects of Chinese.
8.) Sao Paulo, Brazil
Major players like Accenture, Cisco Systems, Dell and Hewlett-Packard provide outsourcing services in Sao Paulo, making it one of the top global outsourcing hotspots. With a solid infrastructure and a capable workforce, Sao Paulo specializes in providing outsourcing solutions for contact centers and product testing.
7.) Cairo, Egypt
Recent political unrest aside, Cairo is one of the world’s top outsourcing locations. With people who speak English, French, German, Spanish and Arabic, multilingual contact centers are huge in Cairo. Another bonus is an atypical workweek- most Egyptians observe the weekend on Thursday and Friday, meaning overtime pay is not necessary for typical weekend work.
6.) Buenos Aires, Argentina
With low market and labor costs, Buenos Aires is now more than ever becoming one of the world’s top outsourcing hotspots. Buenos Aires has a large, highly literate IT population, with many citizens fluent in both English and Spanish. Accenture, Cognizant and Hewlett-Packard have invested in Buenos Aires outsourcing locations.
5.) Krakow, Poland
Unlike the bottom half of this list, Krakow is fast-becoming one of the world’s top outsourcing hotspots because of higher-end outsourcing services, such as business analytics and finance and accounting capabilities. With established outsourcing employers in Krakow like IBM, Philip Morris International and Cap Gemini, the city looks like it’s on this list to stay.
4.) Shanghai, China
Another major player in high-end outsourcing services, Shanghai’s huge group of highly educated workers has the city near the top of the world’s top outsourcing hotspots. A seemingly limitless labor pool with excellent cost opportunities are positives, but the country as a whole still has a weak grasp of Western communication and business methods.
3.) Dublin, Ireland
Dublin was recently named the top Western city on Global Service’s Top 100 Outsourcing Cities list, and at No. 7, was the only Western city named in the Top 10. Positioned in between the United States and Europe’s mainland, the country is in an excellent geographical position, and attracts businesses with an insanely low corporate tax rate.
2.) Manila, Philippines
The Philippine nation as a whole is a top outsourcing hotspot, with Cebu City also one of the top outsourcing hubs in the world. Manila’s geographic accessibility to outsiders gives the city the edge on our list. Manila is known as a leader in contact centers, and is growing in the legal services outsourcing sector.
1.) Bangalore, India
India has long been the worldwide outsourcing leader, and the city of Bangalore in Southern India is the biggest traditional hotspot for the growing nation. With costs that can compete with nearly any country and a huge, English-literate labor pool to dip into, India figures to be the world’s leader in outsourcing for years (and possibly decades) to come. A recent report suggested that India’s BPO market could reach $250 billion, a huge leap from the current market size, which stands at $18 billion. That’s still nearly half of the world’s $40 billion BPO market, which helps India reach the top of this list. Bangalore was recently named the world’s largest outsourcing city in the world, and while companies continue to search for newer outsourcing locations, Bangalore has a firm grasp of the No. 1 spot in terms of the world’s top outsourcing hotspots.
Top 10 air freight carriers
10. Cargolux Group
The Luxembourgish freight carrier Cargolux Group (comprised of Cargolux Airlines and Cargolux Italia, established in 2008) remained in the number 10 spot, with a total reported FTK (Freight Tonne Kilometer) equaling 7.45 bn, which represents a 7.7% expansion year-over-year. The carrier group currently operates a fleet of 30 aircraft (26 through Cargolux Airlines and an addition four through Cargolux Italia), primarily variants of the Boeing 747.
9. Korean Air
Headquartered in Seoul, Korean Air provides cargo and passenger services to over 100 destinations in 44 countries. The carrier fell from eighth place in the previous year’s rankings, with a total FTK of 7.66 bn, representing a 7.1% decrease year-over-year. Korean Air reported a net revenue of $10.7bn in 2017, also reporting a return to profitability for the first time in five years, according to Forbes.
8. Air France-KLM
The Air France-KLM freight carrier group was founded in 1947. The group is comprised of Air France, KLM, and Martinair, and is based in Paris, France. Falling from seventh place in the Freight 50 rankings, the carrier reported a total FTK of 8.13 bn, which represents a 9.2% decrease in traffic year-over-year. The group reported a net revenue of $29.08bn at the end of 2017 and is ranked #28 on Forbes Magazine’s list of Best Employers.
7. Qatar Airways
Qatar Airways, the nationally owned airline of the Kingdom of Qatar is based in Doha, and ascended two places in the Freight 50 rankings, with a total FTK of 9.22 bn, representing a 19.6% increase in comparison to the previous financial year. The carrier’s Cargo division recently launched facilities at its hub in Doha to provide a “Seamless Cool Chain”, comprised of a “2,470 square metres Climate Control Centre situated at the airside… equipped with segregated temperature-controlled sections for storing pharmaceuticals and perishables.” This end-to-end supply chain control is expected to further improve Qatar’s standing as a leader of Middle Eastern air freight.
6. Lufthansa Group
Based in Cologne, Germany, the Lufthansa Group (comprised of Lufthansa, Swiss, Austrian, and Brussels Airlines) fell from the fourth position in the Freight 50, with a combined FTK of 9.46 bn. While this represents a 1.6% increase in traffic, year-over-year, the carrier was forced down the list by drastic growth from other German freight company, DHL. According to Forbes, Lufthansa’s revenue and net profits ($41.5 bn and $2.78 bn, respectively) in 2017 are both the highest reported by the company over a ten-year period.
5. Cathay Group
The Cathay Group (composed of Cathay Pacific Airlines and Dragonair) is headquartered in Hong Kong and its Cargo division accounts for 21% of the airline’s total revenue. The company’s first dedicated cargo flight between Hong Kong, Frankfurt, and London, was established in 1981, according to the official site. Now, Cathay Pacific’s Cargo Division services over 47 destinations worldwide. The carrier fell from the fourth position on the Freight 50 ranking, as its total FTK fell by 3.6%, to 10.21 bn. According to Forbes, Cathay Pacific experienced a second year of unprofitability, although the airline’s asset portfolio reached a record high in 2017, with a net value of $24.1bn.
4. DHL Express Group
Operating as the largest European carrier group, DHL Express Group (composed of DHL Air, DHL International, Air Hong Kong, Polar Air Cargo, ABX Air, Southern Air, Aerologic, and EAT Leipzig) rose two positions in the Freight 50 rankings. The carrier reported a total FTK of 10.56 bn, which represents an increase of 15.1% year-over-year. In 2018, at the Farnborough Air Show, DHL Express announced the purchase of 14 Boeing 777s, part of a new strategy to modernise its fleet.
3. UPS Airlines
Headquartered in Atlanta, Georgia, UPS Airlines is part of United Parcel Service, Inc. Founded in 1908, UPS is the oldest company in the Top Ten, and retained third place in the Freight 50 rankings, with a total FTK of 11.26 bn. This represents a 3.9% increase year-over-year. The Company as a whole reported a net revenue of $67.7 bn, according to Forbes, representing a continuation of a ten-year trend of continuous growth. Forbes also ranks UPS among the world’s top 100 most-innovative companies, and the world’s top 50 most-valuable brands.
2. Emirates Skycargo
The state-owned air freight carrier for the UAE, Emirates Skycargo remains in second place on the Freight 50, with a total FTK of 12.27 bn, representing a 0.4% decrease year-over-year. The carrier’s central hub in Dubai allows its 259-strong fleet to reach over 1.5 bn consumers in under eight hours. Current purchasing plans are underway for Emirates Skycargo to almost double its fleet size. According to Albawaba, “In response to increasing demand from its customers, Emirates SkyCargo introduced a range of air transport solutions specific to industry verticals including Emirates Pharma, Emirates Wheels and Emirates Fresh.” Emirates Wheels has transported close to 150 cars per month since the program’s inception.
1. FedEx Express
Founded in 1998, FedEx Express is both the youngest and largest air freight carrier worldwide, with a total FTK of 15.71 bn. Haulage decreased by 0.9% year-over-year, while revenue increased to $60.5 bn in 2016, and again to $63.8 bn in 2017, continuing an eight-year growth trend. FedEx employs 395,000 members of staff, with FedEx Express operating across twelve transport hubs globally. The carrier purchased an additional 24 Boeing 777 variants in 2018, maintaining their company’s position as the largest airline in terms of cargo haulage.