Singapore is one of the most robust economies with a huge middle class. The country is an ideal location for outsourcing operations. It has a friendly business environment, world class infrastructure, and proximity to Asian giants such as India. The country consistently ranks as one of the fastest offshore outsourcing market in the world today. This is attributed to the presence of iconic organizations such as Microsoft, IBM, HP, and Credit Suisse among others.
Singapore as a country has a population of approximately 5.7 million which expands at approximately 0.8 percent annually. Out of this population approximately 3 million people are actively engaged in labor force. Virtually 100% of the country’s population’s lives in urban areas.
Singapore is Cost Competitive
Singapore is a middle income country where senior software engineers and developers have average income of approximately $60,000. This is equivalent to 60% percent of what their US counterparts earn. Junior system developers with working experience between 1-4 years provide the best saving margin when outsourcing to Singapore. They earn approximately 47% of what their US counterparts earn. Junior non-voice Business Process Outsourcing (BPO) agents earn 45% less pay compared to their US counterparts in similar positions. Highly skilled BPO experts earn approximately $43,000 which is around 76% of what their US based counterparts earn. In addition to the above, the countries tax structure is also very friendly with the corporate tax rate of 17%. This is much better than regional competitors such as China, Malaysia, India, and Thailand which are 25%, 25%, 34% and 30% respectively.
Education
Singapore has a well developed educational system. English is the main language of instruction in all schools. This provides advantages when outsourcing to Singapore. Nanyang Technological University and University of Singapore rank in the top 100 best universities across the world. This clearly depicts that there is enough manpower when outsourcing to Singapore be it in software design & development or other voice based outsourcing assignments. Singaporean students also boast of one of the highest PISA achievements scores with science (542), Mathematics (562) and reading (526). This is exceptional and even better compared to advanced economies such as US, Canada, and UK. The country’s literacy rate stands at 93% and the government re-invests 3% of the GDP back into the educational system.
Culture
The country is diverse with many languages and religions, and foreigners make approximately 42% of the population.
Infrastructural Systems
The country has significantly invested in the road network, high speed rail link, light rail systems, power generation and distribution, and broadband internet access. The country’s telecommunication system is completely digital. In addition, the country has initiated a iN2015 master plan. This is going to deliver a seamless and intelligent information communication infrastructure as an enabler of the vertical sector of the country’s burgeoning economy. With such infrastructure in place, there will be delivery of wider and intelligent highways and ports which enhances flow of digital product into the economy. This will empower outsourcing to Singapore by providing BPO agents opportunity of engaging in networked and information communication enabled services.
