Indonesian outsourcing on the rise

Peter Dinham
Thursday, 30 July 2009 13:36

Business IT - Technology

Indonesia is attracting more companies to use its outsourcing services, with the quality of its labour force, particularly IT graduates, underpinning the growth in services.

According to Bali-based Mitrais, the ability of Indonesia services groups to recruit and train top quality graduates from Indonesia’s specialised IT universities is a critical factor in the decision of many Australian companies to outsource software development.
 
This is a factor supported by analysts firm AT Kearney which says that, while cost remains a major driver in decisions about where to outsource, the quality of Indonesia’s labour pool is gaining importance as companies “view the labour market through a global lens driven by talent shortages at home, particularly in higher, valued-added functions.”

AT Kearney’s Norbert Jorek, says its latest global services location index (GLSI) survey on the outsourcing market showed that Indonesia had overtaken Brazil to rise to number five in the ranking.

The GLSI analyses and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements which are grouped into three categories: financial attractiveness, people and skills availability and business environment.

Mitrais vice president of software development, Mike Page, said  the ability of the company to recruit top quality graduate software engineers and its internal training and competency assessment program, combined with a near shore location and cost advantages to underpin the growth in its Australian client base.
  
“Our current graduate intake completes its three month internal training course at the end of August. This is the 8th course we have run in the three years since the scheme was launched.

“Our experience bears out what A.T. Kearney is saying about the growing importance of the quality of the labor pool.”