The Current Scenario of Sourcing Asia

Over the past few years there has been a dramatic expansion in sourcing and procurement from Asia. Products and services from Asia are in great demand worldwide. Companies have realized the need for sourcing Asia as a strategy to optimize their businesses. Sourcing from low cost Asian nations is not just a strategic advantage it is in fact, a competitive reality. In an era characterized by currency fluctuations, rising transportation and labor costs, several companies across the globe, are turning to low cost emerging markets in Asia for sourcing and procurement. Many companies have shifted their reliance from European markets to Asian markets to procure the best efficiencies at the lowest cost. Most companies have resorted to sourcing from Asia to exploit the great opportunities existing in various Asian nations.

Sourcing Asia: The Current Scenario

Singapore, China, India and Malaysia are among the foremost nations chosen by top multinational companies for outsourcing operations overseas. Asian countries are certainly among the hot favorite sourcing destinations in the world based on business ambiance, people skills, and financial appeal. According to a recent survey, Thailand, Indonesia and Philippines were ranked sixth, fifth and seventh respectively among 51 global sourcing destinations. Philippines has achieved a higher rank compared to last year. India still remains unmatched in both scales as well as people skills. Bangladesh is quite popular as an apparel sourcing destination as it offers the lowest labor costs worldwide. It is a key player in the global outsourcing market thanks to the low cost labor, the fantastic age demography and the Bangladesh government’s incentive for its IT service sector.IT services firms are diversifying and offering product development, research and development and some other niche services. China’s economy is becoming more service-oriented. There is a trend towards information technology and advanced analytics. However, escalating labor costs or wages are adversely affecting competitiveness particularly, on lower-end functions. Asia-Pacific region is emerging as a great sourcing Asia destination.