In the Middle East and North Africa, Egypt is the regional leader and holds the No. 4 spot on worldwide. The United Arab Emirates climbed to 15th overall, with Dubai serving as a regional services hub.
Europe gains ground amid financial turmoil
Though hard hit by the global financial crisis, some European countries have climbed up the list: Estonia is ranked at No. 11, Latvia holds the 12 spot, and Lithuania rests at 14. A.T. Kearney attributes this feat to the countries engaging in internal devaluation, cutting wages and expenditures to enable highly competitive cost structures.
Further, the United Kingdom has gained traction as an offshoring destination. Thanks to a sharp drop in wages, the country has risen from the 31st spot in 2009 to No. 16.
United States: Biggest user of outsourced services
The United States does hold a top spot in A.T. Kearney's study, though not one that might appeal to the average American worker: The United States is the top customer for outsourcing services, accounting for 63 percent of global IT spending. On the other hand, the U.S. Tier II locations (areas of the country that have a lower relative income level) are ranked 18th as outsourcing destinations, thanks to a combination of talent and accessibility.
Canada, meanwhile, has fallen in ranking to 39th place, unable to maintain its cost advantage over rivals. America's southern neighbor Mexico, on the other hand, is the No. 6 ranked offshoring destination worldwide on the index, thanks to a sharp drop in wages, its close proximity to the United States, and a well-developed talent pool. Among the top outsourcing destinations in Mexico is Guadalajara, also known as Mexico's Silicon Valley. General Electric, IBM, Intel, Hitachi, Hewlett-Packard, Siemens, Flextronics, and Solectron have national headquarters or major development centers in the city, according to A.T. Kearney.
Further south, Chile is ranked at 10th place, down from 8th, which Brazil maintained its No. 12 spot.
The A.T. Kearney Global Services Index, 2001, can be viewed in its entirety at the A.T. Kearney website.
This story, "Egypt ranked among top global offshoring destinations," was originally published at InfoWorld.com. Get the first word on what the important tech news really means with the InfoWorld Tech Watch blog. For the latest business technology news, follow InfoWorld.com on Twitter.