The rising cost of labour in China has propelled Vietnam to the top of Cushman & Wakefield’s global outsourcing index for the first time.
The south-east Asian nation rose five places up the rankings, which assesses costs, risks and operating conditions for outsourcing around the world.
C&W’s head of occupier services for APAC and EMEA, Richard Middleton said: “While not the cheapest outsourcing destination, Vietnam is still very competitive when compared to other global locations.
“Wage rises in China largely contributed to Vietnam taking first place in 2015; this is evidence of manufacturers moving to areas with cheaper labour to protect margins.”
India remains the world’s largest outsourcing market but the Philippines was ahead in terms of growth. The Philippines’ $15bn (£10bn) outsourcing market put it in second place as the country absorbed 70% of India’s call centre operations owing to wage inflation in the subcontinent.
| Top destinations |
|---|
| 1 Vietnam |
| 2 Philippines |
| 3 Bulgaria |
| 4 Romania |
| 5 Peru |
| 6 Malaysia |
| 7 El Salvador |
| 8 Brazil |
| 9 Hungary |
| 10 China |
