Best Alternatives to China and India for Outsourcing Industry and IT

Small businesses in need of manufacturing and IT often think they have one option for each: China and India, respectively. While these two giant nations are certainly the world’s centers for talent, they are not the only viable options available to small business leaders for getting things built and digital infrastructure maintained. Here is a breakdown of the best alternatives to China and India for the manufacturing and IT industries:


Too often, small business leaders make the mistake of overlooking the options for manufacturing right next door. For instance, companies throughout Canada and the United States have the benefit of taking their manufacturing to another country on the same continent. The sophistication and reliability of Mexico manufacturing provides a great alternative to industrial systems in Asia and elsewhere. There are also U.S. companies like North American Production Sharing that manages the administration of manufacturing in Mexico to ensure a smooth transition. The economic benefits of manufacturing closer to home come mainly from reduced transportation costs. Coupled with a talented workforce, Mexico is the premiere example of an outstanding alternative to China for small businesses looking to manufacture outside of the U.S.

Some small business leaders in Europe and the UK may not see the geographically-based benefits of choosing to depend on Mexican manufacturing. The European version of Mexico industry is the bulk of former Soviet states in the eastern part of the continent. Poland and Slovakia stay steady at the top of the list in this category, but other eastern European countries are increasing their industrial capacities and sophistication.

Small business leaders in Australia and New Zealand can look elsewhere in Asia besides China to set up a manufacturing line. In fact, they can do so without compromising on cost, efficiency, or quality. The best options include Cambodia, Malaysia, Thailand, and Vietnam.


Fortunately, European small business is well situated when it comes to alternatives to India for outsourcing IT systems. Companies in the UK and Western Europe have access to a huge IT talent pool located in Ireland. The Emerald Isle is at last reaping the benefits of a decades-long push to become the leading European country for finding ideally qualified IT staff. Small ventures operating in France and Germany, where labor costs are especially high, see tremendous relief in the form of Irish IT talent.

The other leading choice for finding top IT talent in Europe rather than looking to India is Ukraine. Ongoing political turmoil aside, Ukraine is a stable source for recruiting computer science professionals within Europe but outside the Eurozone. This is especially attractive to companies in similarly situated European nations such as Norway and Switzerland seeking to expand business on an international scale in the years to come.

However, the great thing about IT is the talent can come from virtually anywhere because they can work from virtually anywhere without additional overhead costs. IT professionals in Mexico can work in step with a business in Oslo as much as similar talent relatively closer to home. Language barriers may make communications a greater challenge but coding and programming run on a universal language.

Believe it or not, there are more options than China and India in the realm of outsourcing manufacturing and IT. This is important for companies seeking to lower costs in the long-term, as both Chinese and Indian labor and talent will only become more expensive as time goes on.



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