Infrastructure continues to be the major driving force for China’s economic growth. 10 High-Tech Zones and 7 Free Trade Zones to be developed for promoting ease of doing businesses through fewer regulations and attractive benefits. However, China’s new Cyber Security Law which is set to take effect on June 1, 2017, further tighten the data security regulations with stringent procedures. Air pollution remained a major cause of concern with more than 70 cities recorded alarming levels of pollution.

IT sector has grown considerably over the years in India. It generates millions of jobs every year which further has led to growth of several IT hubs in Bangalore, Delhi NCR and Hyderabad. Considered as the third largest base for tech startups in the world, it currently hosts more than 4000 startup enterprises. However, key challenges include shift to automation, increasing protectionism in major markets like US, and rising competition from China and Philippines.

While the country’s economic performance in 2016 was a four-year low and recorded a slowdown in overall investments, the ICT sector in Hungary continues to grow which is also a large contributor to the country’s overall GDP and employment. The outsourcing sector is the area with one of the highest overall performance in the economy. Application-related outsourcing is a relatively well-developed segment. However, key challenges such as shortage of skilled labor pool and bureaucratic inefficiencies persist.

Ireland continued to be a preferred location for software firms. Attractive incentives by the government, lower tax rates, and robust regulatory systems provide a better business environment in the country. After Brexit, many companies including financial institutions are considering Ireland to establish their business outside London. However, shortage of office inventory, talent pool and frequent power outages are key challenges for businesses operating Ireland.

Philippines witnessed steady economic growth and surplus in the Government budget during the quarter. FDI also witnessed a significant growth during the quarter. However, the fuel prices and the water and power cost were higher from the last quarter, pressing the inflation rate in Philippines to a more than two-year high. Administrative/procedural inefficiencies continued to make doing business challenging.

Despite witnessing a slow economic growth and global down turn, IT outsourcing sector continued to grow. ITO revenues improved as BSFI and human resource industries expanded their business and leveraged more IT services to serve their clients. As a promising IT offshore destination Vietnam have many advantages such as low wages for IT professionals, Japanese language experts and its proximity to Korean and Japan. However, shortage of skilled labor pool still persists as Vietnam has limited number of colleges and universities.

Mexico has one of the biggest IT market in Latin America and it ranks third globally for nearshoring services. It is also the second country in Latin America with huge investments on start-ups. The country boasts of a rapidly growing IT BPO sector owing to its adequate infrastructure and near shore proximity. However, the quality of skilled talent pool available in the country persists to be an area of concern to IT companies in Mexico.

Colombia has an established IT/BPO market owing to its availability of vast labor pool. The government supports the outsourcing sector by providing technical training in software and services and by offering several incentives. Nearshore proximity and cultural compatibility favor Colombia as an emerging outsourcing destination in the long run. However, the country faces key challenges such as corruption and increasing cybercrime.

Poland reported sluggish economic performance during 2016 and first quarter of 2017. However, the IT BPO industry continues to grow. The country is among favorable outsourcing destinations in Europe and is a prominent choice for outsourcing of app development. Nearshore proximity to US and similar time zones are other added advantages that the country offers.

Brazil’s BPO sector which represents a major portion of LATAM BPO market continues to grow at a consistent rate. The country boasts of a strong and vibrant IT work force ideally suited for call center support services and has the second largest number of English speakers among the major developing economies and holds good number of multilingual labor pool. However, the country faces challenges in terms of social unrest and outbreak of diseases such as zika and yellow fever.