China has focused on infrastructure expansion as a strategy to attract investments in it IT-BPO sector. The country has over 1,500 national and provincial development zones which relish preferential policies to help nurture and promote technological innovation, free trade and other key drivers of economic growth. However, key challenges in terms of soaring cybercrime levels, bureaucratic hurdles prevail in the country which affects the business operations.

As one of the key IT-BPM markets globally, India continues to attract investors and features prominently among the expansion plans of companies looking to leverage the country’s vast talent pool, cost arbitrage as well as technology capability. However, developments in buy-side markets such as Brexit in the EU and new US administration’s stance against the outsourcing will drive and shape the industry growth/margins as well as the outlook in the mid to long term.

Hungary’s ICT sector is a key contributor to the country’s GDP and employment. In Western Europe, the country remains an attractive destination with regard to foreign investment with many leading companies investing in the country. EU membership had a positive impact on the Hungarian economy and had provided several competitive advantages to investors in the country. However, key challenges such as shortage of skilled labor pool and tax frauds persist.

A business friendly environment, attractive corporate tax rates and good English-speaking workforce are among Ireland’s USPs that attract multinationals to invest into the country. Post Brexit, Ireland is the location of choice among several firms planning to relocate or expand their operations owing to its strategic advantages of being in the EU.

The Philippines’ has continued to gain ground as a BPO market and the administration has further set ambitious targets through its six-year roadmap to increase the country’s share of the outsourcing sector at a global level. While the cost advantage, human capital and business incentives are among the strengths, the unfolding developments on the Philippines’ political stability and impact of new US administration’s policies on the domestic IT-BPM market are things to watch out for.

Mexico hosts several leading firms in the IT-BPO sector that employ highly skilled workers. The country, which has one of the biggest IT markets in Latin America, continues to expand at a rapid pace. Nearshore proximity, multilingual labor pool, and cultural compatibility are added advantages for US based businesses. However, widespread corruption, regulatory challenges, and high crime rates are key concerns for businesses operating in the country.

Vietnam’s IT outsourcing sector has witnessed increased revenues, particularly through exports. Increase in use of new tech platforms such as cloud, big data, and analytics help in boosting the demand. Nearshore proximity towards Japan and Korean outsourcing markets is an added advantage for the outsourcing market. The government supports the expansion of outsourcing sector by investing in digital infrastructure and by offering several incentives. However, shortage of skilled labor pool still prevails in the country.

As a favored nearshore location for outsourcing, Colombia has grown as one of the largest IT service providers in Latin America. The recently inked historic pact between the government and FARC fighters (Colombia’s biggest rebel group) offers a positive geo-political outlook for the country. However, key challenges such as power supply disruptions, rampant corruption and increasing cybercrime remain.

As the macro-economic conditions signal a potential improvement, Brazil, the seventh largest ICT market in the world, will benefit from further job creation fueled by investments in the IT services as well as BPO markets. Its location advantage and cultural affinity also further its appeal as a popular nearshore location.

While the country posted weak economic performance in 2016 and recorded a slowdown in overall investments, the IT-BPO sector in the country, a significant share of which is represented by foreign firms, continues to grow. Application development and support, IT enabling services and user support/service desk remain among the key offerings in the IT market.