offshoreOutsourcing2China

One-Stop Offshore Outsourcing

Driven by the increasing globalization of business, companies utilize offshoring and outsourcing to transform the way they grow their business. This is creating opportunities for more locations globally to attract enterprises and outsourcing service providers to set up in their country.

Top Selection Criteria for Outsourcing Location

Firms are looking to locations that meet a number of prerequisites including political stability and a highly skilled workforce with the ability to grow as the level of offshoring industry grows. Emphases this point place quality as the primary requirement above price. Other key factors are as follows:

• Quality
• Labor Cost
• English Language Skills
• Good International Optical/Internet links
• Competitive Information Communication Technologies
• Strong Protection of IT and Implementation of WTO Rules
• Government Incentives

Interestingly, government incentives assisting in the profit and capital repatriation, tax breaks and other incentives are a relatively low priority.

One-Stop Offshore Outsourcing: A New Winning Business Model?

Although price remains a top-three selection criterion and enterprises are looking past incentives offered, this indicates that a competitive price in combination with a skilled workforce is the winner and not price
alone.

In order to gaining a share of the global outsourcing pie, Dubai paints a picture of a high-quality, multilingual, competitively priced, skilled workforce. It looks to portray itself as a high-quality location, offering access to a skilled talent pool at competitive prices.

Here are some key elements of Dubai’s business model;

• provide a prebuilt IT and communications infrastructure (called the Plug and Play Center), enabling companies to start operations with minimal upfront investment, plus subsidized office space and accommodations for workers.
• focuse on attracting companies engaged in high-value-added BPO and ITO services. This includes customer care, finance and accounting (including payroll processing), human resources, transaction processing, IT services, back-office operations, graphic design, engineering and research and development (R&D). Dubai has built a customized facility for companies looking to outsource R&D operations.
• provide disaster recovery (DR), security and hosting services via another subsidiary of TECOM Investments also known as DataFort. The entity focuses on providing an outsourcing service dedicated to IT infrastructure, managed hosting services and a range of IT support services that companies would like to outsource to a more dedicated party.
• offer a number of incentives, including lower real-estate costs, corporate tax exemptions (for a period of 50 years), full currency convertibility, no limits on capital or profits repatriation and 100% company ownership
• offer a fast-track immigration process, including a 24-hour visa service.