A Buyer's Guide to Offshore Outsourcing

Nearly half of all CIOs use offshore providers today, and two-thirds plan to send work overseas next year, according to US-based Forrester Research. India is still the leader, but as more companies seek to source globally, more countries are emerging to benefit from that demand - each with its own particular strengths and weaknesses. There's much to gain from cross-border collaboration. But given that a quarter of offshore projects fail to meet expectations, there's just as much to lose. The keys are picking the right place, partner and project for your needs. To help you out, we've culled the most critical information you need on the 26 countries that are the strongest contenders for your outsourcing dollar.

How We Reached Our Ratings

Leader, Up-and-comer and Rookie status labels are based on the maturity of the industry, the size of the market, the availability and cost of skilled labour, and the infrastructure (both government support and actual technology infrastructure) to support a significant IT services market.

Geopolitical risk ratings are based on reports by PRS Group, a US-based business information provider. Most infrastructure ratings are based on Global Technology Index reports from Meta Group.

Additional information provided by Giga Information Group, Marty McCaffrey (Software Outsourcing Research), Brooke Nicole Consultancy, Gartner, Forrester Research, Renodis, Outsourcing-Russia.com, Mexican Association of Information Technology Enterprises, Philippine IT Offshore Network and Research Vietnam.

Asia/Far East

PAKISTAN: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US3600-$6120/year)Infrastructure: FairPros: Like India, Pakistan is attempting to focus on software quality and processes.

Cons: Pakistan has the highest geopolitical risk of any country we examined. The country has a PR problem, to say the least, which has halted what was great potential for growth. Travel here is obviously a bad idea.

Insider tip: Pakistani people portray better English skills than exist in India.

INDIA: Leader.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US5880/year; $US18-$25/hour)Infrastructure: Poor. However, the government is attempting to strengthen telecom infrastructure and build fibre-optic networks in city centres of software activity, as well as providing uninterrupted power supply.

Pros: With the early-mover advantage, India remains the offshore country of choice: a large, low-cost, English-speaking talent pool and the most mature market in the world.

Cons: Poor infrastructure, in general, political instability, distance and increased competition from other developing nations threaten India's position as outsourcing king of the world. Supply may not continue to meet demand.

Insider tip: Look past the five biggest companies (Tata Consultancy Services, Infosys Technologies, Wipro Technologies, Satyam Computer Services and HCL Technologies) to midsize providers (SSI Technologies, Visualsoft Technologies, Ramco Systems) for personalised service and better prices.

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CHINA: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US8952/year)Infrastructure: Fair. Best in software centres.

Pros: Think India 10 years ago - low-cost workers and lots of them. China is currently experiencing the opposite of brain drain: the number of IT professionals returning to the country is increasing.

Cons: Multinationals are eating up the labour supply. Not the best option for enterprise customers seeking to outsource development or maintenance - poor English skills, lack of exposure to Western business culture, shaky foreign relations and immaturity of processes all pose risks.

Insider tip: China could be a better place to outsource in five years.

THAILAND; Rookie:

Goepolitical risk.

English proficiency.

Average programmer salary: ($US11,124/year)Infrastructure: Fair. Solid infrastructure. The government monopoly continues to tack on costly IT and telecom tariffs, but the sector is going through liberalisation.

Pros: A decent supply of customer-service-oriented, low-cost tech talent along with government support make Thailand attractive.

Cons: Labour demand could outstrip supply; the Thai educational system is still geared toward the traditional, agrarian economy, and the grass is greener for programmers overseas.

Insider tip: Thai programmers are a bit relaxed and may not respond well to pressure tactics. But they are excellent at meeting exacting specs if you are precise and direct. Thailand also attracts a lot of foreign IT talent who get a big bang for their buck in Bangkok.

SINGAPORE: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US33,504/year)Infrastructure: GoodPros: Top-notch IT and telecom infrastructure (the most wired country in the world), visionary government with designs on becoming a global IT hub and a highly Westernised culture.

Cons: Skilled IT workers are scarce here and demand top Singapore dollar.

Insider tip: Even Singaporean companies are increasingly outsourcing work to India and China.

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VIETNAM: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US7200/year; $US25/hour)Infrastructure: Poor infrastructure. Telecom charges among the highest in Asia, but falling.

Pros: It's possible in some cases to find hard-working, motivated programmers at or below the cost of India.

Cons: No low-cost, high-speed international data system yet. Lack of managerial and administrative skills can put the project management burden on you.

Insider tip: Much of the work being done here is small-scale stuff, but if local providers grow, so will the number of enterprise-level projects. Look for companies with overseas-trained project managers. Don't come here for legacy apps - not a Cobol programmer for miles.

SOUTH KOREA: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US25,440/year)Infrastructure: Good. Highly competitive telecom industry and government plans to cover the territory with fibre-optic networks.

Pros: Large percentage of population is potential IT talent.

Cons: More expensive than most developing countries.

Insider tip: Costs could outweigh the benefits here.

PHILIPPINES: Leader.

Gorpolitical risk.

English proficiency.

Average programmer salary: ($US6564/year)Infrastructure: Good. The Special Economic Zone Act of 1991 established IT parks to support the IT export industry, and the US military left behind a solid telecom structure here. However, bandwidth can be costly.

Pros: The English skills of this former US protectorate and its close US ties eliminate language and cultural problems. A large, skilled labour pool (universities churn out 350,000 technology-related degrees each year) works cheap.

Cons: Reports of political instability and corruption tarnish the Philippines' image even though most terrorist activity is limited to a very small region. Project manager supply doesn't meet demand.

Insider tip: It may be the best alternative to India - but make solid contingency plans.

MALAYSIA: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US7200/year)Infrastructure: Good. Robust investment in Malaysia's Multimedia Super Corridor.

Pros: A pragmatic and far-sighted Prime Minister is paving the way for global IT leadership.

Cons: Lacking a large pool of capable programmers. Most of Malaysia's IT talent is imported.

Insider tip: While the government has been incredibly supportive of IT development in general, there has been no focus on the software/services export industry. Once that support is given, this market could grow.

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Europe/Africa

IRELAND: Leader.

Gorpolitical risk.

English proficiency.

Average programmer salary: ($US23,000-$34,000/year; $US24-$34/hour)Infrastructure: Good. Mature infrastructure and low costs.

Pros: US companies such as Dell, IBM and Microsoft all have development centres in Ireland - proof of the Emerald Isle's highly skilled talent pool.

Cons: US companies such as Dell, IBM and Microsoft all have development centres in Ireland - increasing competition for and cost of labour. The talent and maturity of services here are top-notch, but they ain't cheap.

Insider tip: Ireland will increasingly become a buyer - rather than a supplier - of offshore resources.

ROMANIA: Rookie.

Gorpolitical risk.

English proficiency.

Average programmer salary: ($US2362/year)Infrastructure: Poor, but improvingPros: Like its neighbours, Romania has a good educational system and a focus on maths, engineering and science.

Cons: There's more of a political risk factor here than other Eastern European countries. Insider tip: Romania is still shaking off the remnants of the Ceaucescu era, but this area holds some promise.

CZECH REPUBLIC: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US4800-$8000/year; minimum wage similar to Hungary and Poland ($US1132-$1584/year)Infrastructure: Good. Solid investment in IT and communications infrastructure (8.5 per cent of GDP).

Pros: The Czech Republic churns out 5000 technical graduates every year, and the IT services market experienced double-digit growth when the global IT services market grew just 6 per cent.

Cons: Low pay scales give talent little reason to stay.

Insider tip: This country is a survivor if nothing else, retooling itself as a next generation economy and potential IT powerhouse just a few years after freeing itself from communist rule.

HUNGARY: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US4800-$8000/year; minimum wage is $US1132/year)Infrastructure: Good. Solid investment in IT and communications infrastructure (6.4 per cent of GDP)Pros: Top-notch educational system focused on maths and science. Minimal costs.

Cons: It's questionable how many IT professionals the country can actually provide. Insider tip: Hungary, Poland and the Czech Republic have the potential to be the strongest Central/Eastern European providers outside Russia.

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BULGARIA: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US3600-$6000/year)Infrastructure: FairPros: Bulgaria was the Silicon Valley of the former Soviet Union. As in most Eastern European countries, a large network of colleges produces more IT graduates than needed in-country.

Cons: Quality and price vary wildly from company to company, and pseudo-companies with fake customer references may exist.

Insider tip: The software market here is much more diverse in price and quality than stateside. Due diligence is key.

EGYPT: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: (minimum wage is around $US400/year)Infrastructure: Fair. Reasonably modern telecom infrastructure. Telecom Egypt, though in the process of deregulation, has little competition and keeps rates high.

Pros: Egypt says it is keen to become a key player in the global IT industry.

Cons: IT skills shortage, security issues and high tariffs stymie growth.

Insider tip: Egypt is one of the most protected markets in the world with no signs of changing anytime soon. Government "support" is all talk, no action.

POLAND: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US4800-$8000/year; minimum wage is $US1584/year)Infrastructure:

GoodPros: Good intellectual capital, and more of it than Hungary and the Czech Republic. Minimal costs.

Cons: Like most Eastern European countries, the nascent industry here needs time to grow and mature. Insider tip: If Poland can figure out how to retain its brain trust, Poland's capabilities look promising.

UKRAINE: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US4968-$11,736/year)Infrastructure: Poor. Local telephone service in need of upgrades, monopolies charge steep rates, and privatisation has been postponed.

Pros: Plenty of high-quality, high-level engineers for minimal investment. Thirty-nine technology-oriented schools churn out 3000 IT-related degrees each year.

Cons: Like Russia, there are concerns about the economy, government, tax system, corruption, intellectual property laws and cultural barriers. Skilled project managers are scarce.

Insider tip: If the national anthem, which declares "Ukraine has not yet died", is any indication, Ukrainians are an undaunted, if not entirely upbeat, people.

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ISRAEL: Leader.

Geopolitical risk.

English proficiency.

Average programmer salary: (Varies wildly - $US15,000-$38,000/year)Infrastructure: GoodPros: A lack of natural resources propelled Israel into the knowledge-based economy early. Today, it is a major software centre for the world and is growing at 25 per cent a year.

Cons: Ongoing regional turmoil and violence continues to taint Israel's image.

Insider tip: Israel is home to mostly boutique IT consulting and services companies focusing on customised applications or shrink-wrapped software production, in contrast to India's large, project-oriented enterprises.

RUSSIAN FEDERATION: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US5000-$7500/year; $US10-$40/hour)Infrastructure: Fair. Poor telecom infrastructure overall, but much better in technology centres. High cost of bandwidth.

Pros: Rocket scientists for nearly rock-bottom prices. Russia has the third-highest number of scientists and engineers per capita, according to the World Bank.

Cons: Russia and its rubles are still struggling to emerge from communism. Erratic government, unstable economy, lack of managerial talent, and poor consumer protection and intellectual property laws continue to cause problems. Some talented IT workers flee to friendlier climes.

Insider tip: A credible business environment could develop in the next five years. Meantime, Russia can be a good place to solve complex technical problems or provide risk mitigation, particularly at the larger, more developed companies.

SOUTH AFRICA: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US18,000/year)Infrastructure: Fair. Reasonably modern telecom infrastructure is the best in Africa, and investment in telecom is high (7.17 per cent of its GDP).

Pros: Native English is a huge plus. A 50-kilometre stretch between Johannesburg and Pretoria is evolving into the country's first technology hub.

Cons: Low level of outsourcing penetration. Few local companies have evolved into booming technology enterprises. IT talent emigrates elsewhere.

Insider tip: While political violence is mostly a thing of the past, internal problems persist in preventing real growth.

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The Americas

CANADA: Leader

Geopolitical risk.

English proficiency.

Average programmer salary: ($US28,174/year; $US22-$37/hour)Infrastructure: GoodPros: Low risk, high quality, similar exchange rate, compatible cultures. . .

Cons: . . . all of which come at a price.

Insider tip: You won't save a lot of money, but you will reduce the number of potential headaches.

MEXICO: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: ($US1400/year)Infrastructure: Good. Strongest in the country's three technology parks.

Pros: Costs are typically 25 per cent to 45 per cent less than in the US.

Cons: Mexican programmers are not exactly members of the intellectual elite when it comes to engineering skills. The language barrier can also be a problem (though some companies send their programmers to English boot camps). Insider tip: Right now, Mexico may be suitable for low-level, high-volume projects. Make sure you evaluate language skills at your vendor.

VENEZUELA: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: (minimum wage is $US2556/year)Infrastructure: Fair. Modern and expanding telecom and IT infrastructure.

Pros: The government says it wants to get involved in a different kind of offshore development - supporting growth in the IT sector in order to reduce the country's dependence on the oil industry . . .

Cons: . . .but hasn't done much yet. The government is in a state of flux. The term "offshore" here still conjures up images of oil rigs and black gold. Insider tip: Check back in a few years to see if any progress has been made.

CHILE: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: (minimum wage is $US1781/year) Infrastructure: Good. State-of-the-art infrastructure, including network digitalisation, fibre-optics and satellite equipment.

Pros: High level of education, low costs, high-tech infrastructure. Chile is the most European community in South America.

Cons: Chile may lack the entrepreneurial zeal it needs to become a real offshore player. Insider tip: A little more expensive than Brazil but relatively competitive in other ways.

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BRAZIL: Up-and-comer.

Geopolitical risk.

English proficiency.

Average programmer salary: (minimum wage is $US1308/year (less than Chile, Argentina and more than India, Russia))Infrastructure: GoodPros: Local companies are beginning to develop their own IT services delivery capability.

Cons: Until recently, IT activity in Brazil was limited to that being done by large, multinational companies. Insider tip: It's the outsourcing leader in Latin America.

ARGENTINA: Rookie.

Geopolitical risk.

English proficiency.

Average programmer salary: (minimum wage is $US2400/year (a little less than Korea))Infrastructure: Fair. But telephone system frequently grounds out during storms, even in Buenos Aires.

Pros: Argentina has one of the most educated populations in South America, and the devalued peso makes Argentineans very affordable employees.

Cons: Highest salaries in South America, limited access to growth capital, lack of intellectual property protection and political instability. Insider tip: Argentina has had plenty to cry about - from political corruption to economic collapse. But there is still outsourcing potential here.

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Asia/Far East

China

Government support/laws: Fair. China's trade policy, censorship and strict regulation have hampered offshore development efforts, but that's begun to turn around with government showing more interest in supporting the IT sector.

Quality initiatives: 57,783 ISO 9000 certifications.

Major providers: Asia Info (www.asiainfo.com), Commverge Solutions (www.commverge.com), eSoftBank (www.esoftbank.com).

Majort customers: NA.

Cities/Centres of outsourcing: Beijing/Tianjin, Chengdu (Sichuan), Dalian/Shenyang, Guangzhou, Hong Kong and Shanghai.

National IT organisation: Ministry of Information Industry (MII; www.mii.gov.cn).

Size of industry: 5000 software companies employ 200,000 professionals.

Total labour force: 734.3 million.

Areas of expertise: Application development, application maintenance, QA testing, systems integration.

India

Government support/laws: Strong, with such perks as 10-year tax holidays for software/IT services exporters.

Quality initiatives: Highest number of CMM-certified companies in the world - 37 companies meet CMM minimum standards; 5554 ISO 9000 certifications.

Major providers: Tata Consultancy Services (www.tcs.com), Infosys Technologies (www.infy.com), Wipro Technologies (www.wipro.com).

Major customers: 260 of Fortune 1000, including 3M, Amazon.com, Cigna, Nortel Networks.

Cities/Centres of outsourcing: Bangalore, Chennai, Delhi, Hyderabad and Mumbai (Bombay).

National IT organisation: National Association of Software and Services Companies in India (NASSCOM; www.nasscom.org)Size of industry: $US6.2 billion; 900 export-only companies employ 415,000 professionals.

Total labour force: 439 million.

Areas of expertise: Application maintenance, application development, e-business, packaged software implementation.

Malaysia

Government support/laws: Good. Prime Minister envisions Malaysia as a global high-tech corridor and has invested $US10 billion in high-tech parks.

Quality initiatives: 3195 ISO 9000 certifications.

Major providers: Formis Computer Services (www.formis.com.my), Heitech Padu (www.heitech.com.my), Sapura Information Technology (www.sapura.com.my).

Major customers: NA.

Cities/Centres of outsourcing: Cyberjaya, Kuala Lampur.

National IT organisation: Malaysian Technology Development Corp. (www.mtdc.com.my).

Size of industry: NA.

Total labour force: 9.6 million.

Areas of expertise: Application development, application maintenance, e-business.

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Pakistan

Government support/laws: Good. Government has invested $US16 million in various projects aimed at improving infrastructure, HR development and integrating IT in the public sector. Tax exemption for software companies until 2018.

Quality initiatives: 539 ISO 9000 certifications. Currently 6 per cent of the software companies have either ISO 9000 or CMM certifications, with indications that that will increase.

Major providers: CresSoft (www.cressoft.com).

Major customers: Aspen Technology, AT&T, Schlumberger, World Bank.

Cities/Centres of outsourcing: Islamabad, Karachi, Lahore.

National IT organisation: Pakistan Software Export Board (www.pseb.org.pk).

Size of industry: More than $US120 million; 700 companies employ 15,000 professionals.

Total labour force: 40 million.

Areas of expertise: Application development, application maintenance, packaged software implementation.

Philippines

Government support/laws: Good. Government incentives include three- to six-year income tax breaks, exemptions from all government fees, licences, dues, export taxes, etc.

Quality initiatives: Limited CMM certification; 961 ISO 9000 certifications. The Philippine government is setting up a program to offer incentives for certification.

Major providers: Computer Engineering Corporation (www.cecph.com), Headstrong (www.headstrong.com), Philippine IT Offshore Network consortium, (www.piton-global.com), Soluziona Philippines (www.soluziona.com), SVI Philippines (www.svi.com.ph).

Major customers: FedEx, Northwest Airlines, Walt Disney.

Cities/Centres of outsourcing: Cebu City, Makati City, Manila, Pasig City.

National IT organisation: Information Technology Association of the Philippines (www.itaphil.org).

Size of industry: $US1 billion; more than 1000 companies employ 290,000 professionals.

Total labour force: 32 million.

Areas of expertise: Application development, application maintenance, call centres, business continuity and disaster recovery, e-business.

Singapore

Government support/laws: Stable, business-friendly government offers big tax incentives.

Quality initiatives: 3,513 ISO 9000 certifications.

Major providers: Business Technovise Inter'l (www.biztech-i.com), Jayasoft Solutions (www.jayasoft.com.sg), NCS Singapore (www.ncs.com.sg).

Major customers: Solectron, Sun Microsystems.

Cities/Centres of outsourcing: SingaporeNational IT organisation: Singapore IT Federation (www.sitf.org.sg).

Size of industry: NA.

Total labour force: 2.2 million.

Areas of expertise: Application development, application maintenance, systems integration.

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South Korea

Government support/laws: Good. The Korean government has written or revised more than 100 laws in finance, education and intellectual property in order to stimulate IT growth.

Quality initiatives: 17,676 ISO 9000 certifications.

Major providers: Hyosung Data Systems (www.hds-hyosung.co.kr), Hyundai Information Technology (www.hit.co.kr), Kolon Data Communications (www.kolon.com), Samsung SDS (www.sds.samsung.co.kr).

Major customers: NA.

Cities/Centres of outsourcing: Seoul.

National IT organisation: Federation of Korean Information Industries (www.fkii.or.kr), Korean Trade-

Investment Promotion Industry (KOTRA; www.kotra.or.kr).

Size of industry: 436,000 professionals.

Total labour force: 22 million.

Areas of expertise: Application development, application maintenance.

Thailand

Government support/laws: Fair. The Prime Minister is pro-IT and has introduced some incentives.

Quality initiatives: At least eight companies have reached minimum CMM certification; 3870 ISO 9000 certifications.

Major providers: Frontware International (www.frontware.co.th), Soft Square International.

Major customers: Dell, Glovia, Sungard.

Cities/Centres of outsourcing: Bangkok, Chiang Mai.

National IT organisation: Association of Thai Software Industry (www.atsi.or.th). Government plans to develop the Software Industry Promotion Agency.

Size of industry: 195,000 developers.

Total labour force: 33.2 million.

Areas of expertise: Application development, application maintenance.

Vietnam

Government support/laws: Good. As of 2001, the government charged zero tax for software exports and set a target of training 50,000 IT workers by 2005. Even the communist party (Ho Chi Minh City government) has publicly recognised the importance of IT.

Quality initiatives: 245 ISO 9000 certifications.

Major providers: FPT-Soft (www.fpt-soft.com), Global Cybersoft (www.globalcybersoft.com), TMA

Software Solutions (www.tmasolutions.com).

Major customers: Merrill Lynch, State of Oklahoma.

Cities/Centres of outsourcing: Hanoi, Ho Chi Minh City.

National IT organisation: Research Vietnam (www.researchvietnam.com), Vietnam Software

Association (VINASA; www.yes.com.vn/vinasa/indexe.asp ).

Size of industry: $US287 million.

Total labour force: 38.2 million.

Areas of expertise: Application development, application maintenance, e-business.

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Europe/Africa

Bulgaria

Government support/laws: Fair.

Quality initiatives: 469 ISO 9000 certifications.

Major providers: Global Consulting (www.globalcons.com), Prosoft www.prosoft.bg), Rila Solutions (www.rila.com), Wizcom (www.wizcom.bg).

Major customers: BMW, General Motors, Lockheed Martin.

Cities/Centres of outsourcing: Sofia.

National IT organisation: Bulgarian Association of Information Technologies (BAIT; www.bait.bg).

Size of industry: $US10 million; 7000 professionals.

Total labour force: 3.9 million.

Areas of expertise: Application development, application maintenance.

Czech Republic

Government support/laws: Fair.

Quality initiatives: 334 ISO 9000 certifications.

Major providers: Deltax (www.deltax.cz), ICZ (www.i.cz), ISS (www.iss.cz), Minerva Czech Republic (www.minerva-is.cz), Pragodata (www.pragodata.cz).

Major customers: NA.

Cities/Centres of outsourcing: Prague.

National IT organisation: NA.

Size of industry: $US689.2 million.

Total labour force: 5.1 million.

Areas of expertise: Application development, application maintenance.

Egypt

Government support/laws: Poor. The Egyptian Ministry of communications and Information Technology is establishing a $US30 million university in Cairo devoted to IT to be open in 2004. However, Egyptian government continues to impose high fees, taxes and customs duties.

Quality initiatives: 546 ISO 9000 certifications.

Major providers: NileSoft (www.nilesoft.com.eg).

Major customers: CreditSuisse.

Cities/Centres of outsourcing: Cairo, Giza, Heliopolis.

National IT organisation: Egyptian Exporters Association (Expo-Link; www.expolink.org.eg).

Size of industry: $US5 million to $US7 million.

Total labour force: 19.9 million.

Areas of expertise: Application development, application maintenance, packaged software implementation.

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Hungary

Government support/laws: Fair.

Quality initiatives: 6362 ISO 9000 certifications.

Major providers: MAV Informatika (www.mavinformatika.hu), Online (www.online.hu), Synergon (www.synergon.hu).

Major customers: NA.

Cities/Centres of outsourcing: Budapest.

National IT organisation: NA.

Size of industry: NA.

Total labour force: 4.1 million.

Areas of expertise: Application development, application maintenance.

Ireland

Government support/laws: Good. The Irish government has made the tax structure attractive to foreigners, labour laws are favourable to employers, and a $US330 million Technology Education Investment Fund was established in 1997.

Quality initiatives: Irish companies have not invested in CMM certification to the levels that India has; 3700 ISO 9000 certifications.

Major providers: Altamedius (www.altamedius.com), Eontec (www.eontec.com).

Major customers: Bank of America, NTL, Vodafone.

Cities/Centres of outsourcing: Dublin.

National IT organisation: Enterprise Ireland (www.enterprise-ireland.com).

Size of industry: $US6.7 billion. More than 750 companies employ 23,000 professionals.

Total labour force: 1.8 million.

Areas of expertise: Application development, application maintenance, call centre.

Israel

Government support/laws: Good. Highly supportive of R&D.

Quality initiatives: 6447 ISO 9000 certifications.

Major providers: Crystal Systems (www.crystal-sys.com), Daronet (www.daronet.co.il), Eyron Group (www.eyron.com).

Major customers: Canadian Imperial Bank of Commerce, Merrill Lynch, Shaw Industries.

Cities/Centres of outsourcing: Haifa, Herzliya, Jerusalem, Rehovot, Tel Aviv.

National IT organisation: Israeli Association of Software Houses (IASH; www.iash.org.il).

Size of industry: $US2.6 billion; more than 400 companies employ 35,000 professionals.

Total labour force: 2.4 million.

Areas of expertise: Application development, application maintenance, packaged software implementation, application integration, security, e-business.

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Poland

Government support/laws: Fair.

Quality initiatives: 2622 ISO 9000 certifications.

Major providers: NA.

Major customers: NA.

Cities/Centres of outsourcing: Krakow.

National IT organisation: NA.

Size of industry: NA.

Total labour force: 17.4 million.

Areas of expertise: Application development, application maintenance.

Romania

Government support/laws: NA.

Quality initiatives: 1670 ISO 9000 certifications.

Major providers: NA.

Major customers: NA.

Cities/Centres of outsourcing: Brasov, Bucharest, Iasi.

National IT organisation: Association for Information Technology and Communications of Romania (www.atic.org.ro).

Size of industry: NA.

Total labour force: 9.9 million.

Areas of expertise: NA.

Russian Federation

Government support/laws: Poor. Byzantine business laws and tax structures hamper growth, but there are signs of improvement.

Quality initiatives/CMM/ISO: Three Russian companies currently certified to CMM standards; 1517 ISO 9000 certifications.

Major providers: Fort-Ross IT Services (consortium; www.fort-ross.ru), Luxoft (www.luxoft.com), Novosoft (www.novosoft-us.com), STAR SPB (www.star.spb.ru).

Major customers: Boeing, General Electric, US Department of EnergyMajor centres of outsourcing: Moscow, Novosibirsk (Siberia), St Petersburg.

Outsourcing organisations: Inforus (www.inforus.org), National Software Development Alliance (www.russoft.org).

Size of industry: 100 companies employ 8000 professionals; $US60 million to $US100 million.

Total labour force: 72.6 million.

Areas of expertise: Application development, migrating and porting, application maintenance, enterprise application integration, QA testing, packaged software implementation.

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South Africa

Government support/laws: Moderate. Presidential Task Force has been formed to consider ways to improve IT infrastructure and industry support, including a $US23 million investment in a technology park in Pretoria.

Quality initiatives: 2263 ISO 9000 certifications.

Major providers: Arivia (www.arivia.co.za), Azisa (www.Asiza.co.za).

Major customers: AIG, Old Mutual, Sage Life, Swissair.

Cities/Centres of outsourcing: Cape Town, Johannesburg, Pretoria.

National IT organization: Information Industry of South Africa (www.informationindustry.org.za).

Size of industry: NA.

Total labour force: 16.3 million.

Areas of expertise: Call centres, e-business, application development, IT security.

Ukraine

Government support/laws: Fair. The President, considered a technocrat (a PhD in mechanical engineering and two State Prizes in rocket and space technologies) has passed a decree for more IT parks, pro-technology policies and tech business incubators.

Quality initiatives: 269 ISO 9000 certifications.

Major providers: Miratech (www.miratech-software.com), MitriDAT (www.mitridat.com), Softerra (www.softerra.com), TelesensKSCL Ukraine (www.telesenskscl.com.ua), Softline (www.softline.kiev.ua), Ukrsoft (www.ukrsoft.com).

Major customers: AT&T Canada, Barclays Asset Finance, Community Bank & Trust (Sheboygan, Wis.), Dakota Imaging (health-care ASP).

Cities/Centres of outsourcing: Kharkov, Kiev.

National IT organisation: Ukrainian Association of Software Developers (www.uaswd.org.ua).

Size of industry: $US39 million; more than 200 companies employ 20,000 to 25,000 professionals.

Total labour force: 22.8 million.

Areas of expertise: Application development, application maintenance.

The Americas

Argentina

Government support/laws: NA.

Quality initiatives: 2324 ISO 9000 certifications.

Major providers: BitX (www.bitx.com.ar), Buenos Aires Software (www.bsa.com.ar), Technisys (www.technisys.net)Major customers: BankOne, Citibank, Principal Financial Group.

Cities/Centres of outsourcing: Buenos Aires.

National IT organisation: Camara de Empresas de Software y Servicios Informaticos (www.cessi.org.ar).

Size of industry: $US1.7 billion; 500 companies employ 25,000 professionals.

Total labour force: 14.1 million.

Areas of expertise: Application development, application maintenance, call centre.

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Brazil

Government support/laws: Fair.

Quality initiatives: 9489 ISO 9000 certifications.

Major providers: CPM Systemas (www.cpm.com.br), G&P Projectos e Systemas (www.gpnet.com.br), Proceda (www.proceda.com.br), Vetta Technologies (www.vettatech.com).

Major customers: GE Engine Services, Goodyear, Xerox.

Cities/Centres of outsourcing: Rio de Janeiro, Sao Paulo.

National IT organisation: Sociedade de Usuarios de Informatica e Telecomunicacoes (www.sucesusp.org.br).

Size of industry: NA.

Total labour force: 79.3 million.

Areas of expertise: Application development, application maintenance.

Canada

Government support/laws: Good.

Quality initiatives: CMM initiatives similar to that of the US; 11,635 ISO 9000 certifications.

Major providers: CGI Group (www.cgi.ca), Fujitsu Consulting ca.consulting.fujitsu.com), Keane Canada (www.keane.com), March Networks (www.marchnetworks.com), Unisys Canada (www.unisys.ca).

Major customers: Allmerica, Fireman's Fund Insurance, Toyota.

Cities/Centres of outsourcing: Halifax, Montreal, Toronto.

National IT organisation: Information Technology Association of Canada (www.itac.ca).

Size of industry: NA.

Total labour force: 16 million.

Areas of expertise: Application development, application maintenance, e-business, call centre.

Chile

Government support/laws: Fair.

Quality initiatives: 229 ISO 9000 certifications.

Major providers: NA.

Major customers: NA.

Cities/Centres of outsourcing: Santiago.

National IT organisation: Information Technology Association of Chile (www.acti.cl).

Size of industry: NA.

Total labour force: 5.8 million.

Areas of expertise: Application development, application maintenance.

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Mexico

Government support/laws: Good. President Vicente Fox is leading a software development initiative to strengthen capabilities and promote them abroad.

Quality initiatives: Most companies are not investing in CMM certification; 2233 ISO 9000 certifications.

Major providers: Expert Sistemas Computacionales (www.expert.com.mx), Grupo Qualita (www.gqualita.com.mx), Hildebrando (www.hildebrando.com.mx), Softtek (www.softtek.com).

Major customers: Coca-Cola, General Electric, Principal Financial Group, Procter and Gamble.

Cities/Centres of outsourcing: Guadelajara, Mexico City, Monterrey.

National IT organisation: Asociacion Mexicana de la Industria de Tecnologias de Informacion (AMITI; www.amiti.mx.org).

Size of industry: NA.

Total labour force: 41.9 million.

Areas of expertise: Application development, application maintenance, data centre outsourcing.

Venezuela

Government support/laws: Poor.

Quality initiatives: 373 ISO 9000 certifications.

Major providers: NA.

Major customers: NA.

Cities/centres of outsourcing: Caracas.

National IT organisation: Venezuelan Chamber of IT Companies www.cavedatos.org.ve.

Size of industry: NA.

Total labour force: 10.2 million.

Areas of expertise: NA.