Talent regeneration key to outsourcing success, says Kearney
ILLINOIS, UNITED STATES — Management consulting firm Kearney recently released its 2023 Kearney Global Services Location Index (GSLI).
According to the index, the offshore business services market expanded to $681 billion, with a projected eight per cent growth rate annually until 2027. A critical finding in this year’s index is the importance of talent regeneration, meaning effective workforce reskilling in response to technological disruptions, for the appeal of offshore locations.
India, China, and Malaysia continue to lead the global services market, owing to their cost-effectiveness, extensive talent pool, and robust skills. Both India and China made considerable progress in cultivating their talent reserves. They’ve utilized government initiatives, solid STEM education, and industry-specific blueprints to propel their talent regeneration.
Interestingly, the United Kingdom (UK) ascended to the top five for the first time, becoming the first Western economy to achieve this feat. In the eighth position, the United States (U.S.) capitalizes on its emphasis on innovation and talent development.
Countries like Brazil, Singapore, Germany, and Canada, although lower in the GSLI rankings, have also exhibited dedication to talent regeneration. They’ve utilized governmental initiatives, industry collaborations, and robust tech ecosystems to preserve their standings.
The Philippines, a major business process outsourcing (BPO) hub in Asia, slid down to twelfth despite housing over a thousand outsourcing companies and nearly 1.2 million employees. However, government-led initiatives offering technical education and skills development in areas ranging from customer service to cloud computing are expected to keep the country’s momentum in the next years.
Kearney concluded that countries could stand out in the offshore business services market by dynamically regenerating their talent pool and swiftly tackling technological disruptions in a globally connected landscape.
