As Global trade continues to grow, global sourcing to Asian countries is intensifying. Businesses in territories like the United States, United Kingdom and other European states are starting to invest in manufacturing centers in countries like India, Vietnam and Korea. It is trending for companies to establish sourcing companies in these Asian countries, especially today as more and more business are delving into outsourcing. These are some facts that will show why the eastern expansion of global supplier companies is trending in 2014. Economic Status of East Asian Countries The economy is a major factor for global sourcing trends. As international trade flows primarily from HCC (high cost countries) to LCC (low cost countries), business is also exploiting the latter for their low cost labor, taxes and local resources. Continents like India, Indonesia and Singapore are top sourcing territories in Asia and many companies have started establishing off-shore companies and implementing international supplier campaigns. Stability and economic reliability Sourcing to Low cost countries is not the only factor that drives the trend to go eastward. It is also dictated by the stability of the country and their economic reliability. Territories like Singapore and India are stable countries, even with low-cost labor. However, countries like Indonesia and the Philippines are still budding candidates for a full-blown international sourcing destination because of its recent government instability and local insurgencies. Highly skilled workers
India and Singapore have been attributed as prime producers of world class workforce. Engineers, technicians, especially IT specialists, are blossoming on these continents. This makes it a fertile ground to find skilled workers who will benefit international sourcing companies. Because of relatively low labor cost, highly skilled workers can easily be employed making it profitable for companies in High-cost countries seeking to establish off-shore opportunities. Growing international trade in Asia As Asian territories are entering the global trade market, products such as electronics, vehicles and such are becoming in demand. This opens up a new theatre for business, thus increasing the profitability of establishing off-shore companies in these continents. Also because of this global trade, quality control can be assured, this allows sourcing companies to trust these countries to provide quality products, even at low-cost. Ease of communication Another reason why India and Singapore are becoming prime locations for sourcing companies is because of their fluency in languages such as English. As the biggest sourcing continents are in the United States, United Kingdom and Australia, countries that are fluent in English are automatically preferred. In summary Though global sourcing is an issue in territories like the United States, as labor is being deprived of their own citizens, it is a welcome opportunity for sourced countries. As the international trade continues to increase in vitality, more and more companies will find it beneficial to start investing on off-shore companies in Asia, especially as 2014 goes underway.