《全球离岸服务目的地指数》

PhotobyKearneyalumni

Regenerativetalentpools

The2023KearneyGlobalServicesLocationIndex

KEARNEY

Acountry’sattractivenessasanoffshore

locationforbusinessservicesdependslargelyonitsabilitytoreskillandredeploythe

workforceinresponsetochangingmarketdemandsandtechnologicaldisruptions.

Executivesummary1

Regenerativetalentpools:

everything,everywhere,allatonce3

Emergingglobaltrendsandlocaldisrupters

impactingthetalentsupplychain3

Talentregenerationfactorsthatenableorhinder

thereplenishmentprocess4

T

alentregenerationperformance6

The2023GlobalServicesLocationIndex

Themostimprovedcountries

Aregion-by-regionlookattheperformance

ofselectcountries

The2023GSLIrankings

9

9

10

16

Conclusion

18

Authors

19

Appendix20

Executivesummary

Theoffshoringofbusinessservicescontinuestoseestronggrowthacrossbordersascompaniesseekto

lowertheircosts,scaletheirtalent,andbecomemoreefficientbyusingmoreoftheglobaltalentbase.In

fact,theglobalmarketforbusinessservicesgrew

fromUS$624billionin2022toUS$681billionin

2023,andisexpectedtoriseatacompoundannualgrowthrateof8percentthrough2027.

Avarietyoffactorsinfluencedecisionsaboutwheretolocateoffshoreoperations,includinglaborand

infrastructurecosts,availableskillsandqualityofservicesrendered,infrastructure,business

environment,andpoliticalandsocialrisks.Kearney’sGlobalServicesLocationIndex(GSLI)helps

companiesandgovernmentinstitutionsunderstand

andcomparethefactorsthatmakecountriesattractiveaspotentiallocationsforoffshoring.

Amajorfocusofthisyear’sGSLIishighlightingthe

importanceoftalentregenerationinmaintainingandenhancingtheattractivenessofoffshorelocations.

Howrapidlyacountryreskillsandredeploysits

workforceinresponsetochangingmarketdemandsandtechnologicaldisruptionsisinfluencedbyfactors

suchasitseducationsystem,labormarket

conditions,immigrationpolicies,government

support,anddigitalinfrastructure.Countriesthatcanquicklyregeneratetheirtalentpoolhavea

competitiveedgeoverthosethatfaceskillsshortagesandmismatches.

Overall,thetopthreecountries—India,China,and

Malaysia—continuetoleadthankstotheirimmensecostadvantage,abundanttalentpool,andstrong

skills.IndiaandChinaalsoshowsignsofstrengthintalentregenerationcapabilities,makingthemglobal

frontrunnersinavailabilityofatech-enabled

workforce.

AsiaPacificcountriesremaininthelead(thoughthePhilippineshasdroppedoutofthetop10andMexico

hasclimbedfrom11to10).TheUnitedKingdomhasseenanotablechangewithitsmoveuptofifth

place—markingthefirsttimeawesterneconomyhasenteredthetopfive.

Thetop10countriesinthe2023GSLIareshowninfigure1onpage2.

Wecoverfourmajorelementsinthisyear’sGSLIreport:

—Theimpactofemergingglobaltrendsandkey

localdisruptersthataremakingthetalentsupplychainmorecomplex,requiringcompaniesto

revamptheirtalentsourcingandmanagementstrategies

—Talentregenerationfactorsthatenableorhinderthetalentreplenishmentprocess

—Relativetalentregenerationperformanceofthetop25GSLI-rankedcountriesandacloserlookatthosethatshowstrongcapabilities

—Aregion-by-regionlookattheperformanceofselectcountries

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex1

Figure1

Top10countriesinthe2023GSLI

Country

2023rank

2021rank

∆

India

1

1

—

China

2

2

—

Malaysia

3

3

—

Brazil

4

5

1

UnitedKingdom

5

8

3

Indonesia

6

4

–2

Vietnam

7

6

–1

UnitedStates

8

7

–1

Thailand

9

10

1

Mexico

10

11

1

IncreasedDecreasedNochange

Source:Kearneyanalysis

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex2

Regenerativetalentpools:

everything,everywhere,allatonce

Thisyear’sGSLIanalyzesthesocialandeconomicfactorsthatledtotheneedfortalentregenerationandidentifiesthecountriesthathavebeenmost

successfulinrespondingrapidlytothisneed.

Emergingglobaltrendsandlocaldisruptersimpactingthetalent

supplychain

Thegloballabormarkethasundergonemajor

changesoverthepastfewyears.Acombinationof

geopolitical,social,economic,andtechnological

factorshascreateddivergentoutcomesforcountriesandsectorsandbroughtnewchallengesand

opportunitiesforworkersandemployers.The

demandfornewskillsandjobshasbeenshapedby

Industry4.0(i4.0)technologies,whichinturnare

quicklychangingconsumerandworkerexpectations.

Shiftingmacroeconomicdynamicsareresultingin

neweconomicblocksandtradingpartners.Brazil,

Russia,India,China,andSouthAfrica(BRICS)—onceknownastheworld’sfastest-growingeconomies—arenowsettingthemselvesupastheGlobalSouthand

analternativetotheG7.Equally,growthinfrontier

economiessuchasthePhilippines,Iran,andEgyptistakingoffand,onaPPPbasis,willovertakeItalyandCanadaby2050.1Nigeria,sub-SaharanAfrican’s

largesteconomy,willbethethirdmostpopulous

countryintheworldby2050.Theseshiftinggrowthdynamicsmustbecarefullymonitoredaswelookatfuturetalentandskillspools.

ThewarinUkrainehasimpactedthetalent

availabilityandrenewalinseveralcountriesasmore

than5.3millionUkrainianshavebeendisplacedand

morethan8.1millionrefugeeshavebeendispersed

acrossEurope.ThisongoingturmoilhasdisruptedtheUkrainianeducationsystemandlabormarket,withadecreaseinforeigninvestmentthatislimitingjob

opportunitiesforthecountry’sremainingskilledworkers.

Theglobaleconomicslowdownhasalsocauseda

hiringslowdown.Big-techlayoffsinearly2023madeheadlines,buttheindustrieslargelyaffectedby

layoffsincludeconstruction,accommodationandfoodservices,andhealthcareandsocialservices.

Smallcompaniessawthebiggestdecreaseinjobopeningsandthelargestincreaseinlayoffs,whilelargecompaniessawlittlechangeintheirjob

openings,hires,andtotalseparationrates.2

Technologicaladvancements,particularlyin

generativeAI,areexpectedtohaveahugeimpactonbusinessoverthenextfewyearsasi4.0accelerates.ThisnewwaveofAIhasthepotentialtoreplaceor

reduceupto300millionjobsaroundtheworldoverthenextdecadewhileenablinginnovation,efficiency,personalization,andcreativity.Insomecases,itcouldfreeupknowledgeworkerstofocusonmorestrategictasksandimprovetheirproductivity.Inothercases,

itcoulddisplaceworkersentirely,requiringthemtodevelopnewskillsandcompetencies.

(FormoreinformationontheStateofIndustry4.0,pleaseread

here

.)

1PPPispurchasingpowerparity

2Smallcompaniesaredefinedasthosewithonetonineemployees.Largecompaniesaredefinedasthosewithmorethan5,000employees.

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex3

Demographicshiftsareaslow-movingbutever-

presentforcethataffectslong-termlocationservicesplanning.Japan,China,theUnitedStates,andmanyEuropeancountriesarefacingagingpopulations

thankstolongerlifeexpectancyanddecliningbirthrates,whichleadtoasmallerworkforceasa

proportionofthetotalpopulation.Meanwhile,Indiahasayoungandfast-growingworkforcewithahighpotentialforeconomicdevelopmentandinnovation.Theseshiftswon’tdrasticallyaffectacountry’s

near-termrankingintheGSLIbutarecauseforpause

whenconsideringlong-termcapex-heavy

investmentsintoalocation.

Thesedisruptershavemadethetalentsupplychainmorecomplexanddynamic,requiringcountriesandcompaniestoboldlyreimaginetheirtalentsourcingandmanagementstrategies.Organizationswillneedtoadoptacomprehensiveandstrategicapproachtotalentmanagementthatrequiresinvestingin

reskillingandupskillingprograms,fosteringacultureoflearningandinnovation,enhancingemployee

experienceandwell-being,promotingcollaborationandbelonging,andaligningtalentpracticeswith

businessobjectivesandvalues.

Talentregenerationfactorsthatenableorhinderthe

replenishmentprocess

Regeneratingthetalentsupplychainhasbecome

morechallengingbecauseofrapidchangesaround

globalmacroeconomictrends,workforce

demographics,andthesociopoliticallandscape.

However,withdisruptioncomesnewopportunities.

Strengtheningthetalentsupplychainrequiressuccessfulstrategiesacrossfourdimensions:

Identifyglobalskillsrequirementsandgaps

Thiscanbedoneeitherproactivelybypredictingmacrotrendsorreactivelybyadjustingfor

socioeconomicconditions.Macrotrendsinnew

technologies;improvementstotheenvironmental,

social,andgovernance(ESG)posture;localizationofsupplychains;andaneconomicslowdownwereallforeshadowedbyadvancementsindigital

transformationtechnologies,theParisClimate

Accords,andtheCOVID-19pandemic.Additionally,developingmoreefficientjobreallocation

mechanismsandbuildingcapabilitiesincoreskillssuchasanalyticalthinkingwillhelpbuildamore

sustainabletalentpipeline.

Thetalentsupply

chainregeneration

iscyclicaland

iterative,requiringa

holisticapproachto

captureimmediate

economicbenefits.

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex4

Closetheskillsgapbyofferingtraining

Talentretentionandtrainingareconnected.Infact,87percentoforganizationsfundtheirtraining

programsinternallyandexpectproportionalreturns

fromthisinvestment.However,withthedifferencesintalentdemographicswideningamonglocations,

customizedincentiveswillbeadifferentiatingfactor.Theemployeeexperience—includingwell-being

initiatives,remoteandhybridworkopportunities,

diversityinclusionpolicies,andESGprograms—

mattersfortalentretentionasmuchifnotmorethantraditionalincentivessuchasraisesandpromotions.

Sourcetheworkforce

Globaltrendshaveunlockedadditionalavenuesforsourcingtalent.Amidsupplychainshortagesand

localizationinitiatives,manybusinessesturnedto

nearshoringtodistributetherisk.ParticularlyinEastAsiaandNortheasternEurope,maintaining

productionbasesanddiversifyingsuppliershave

reducedthedisruptions.Practicessuchashiring

temporary“digitalnomads”whohaveworkflexibilityandcreatingadvisoryrolesforretireeshavecreatedopportunitiestosourceexperiencedtalent.Althoughcompanieswillcontinuetoassessskillsbasedon

workexperienceanddegrees,thevalueof

certificationsandshortercourseswillneedto

increasetokeepupwiththerapidpaceofchange.

Createnewdeliverymodelstotapintothetalentsupply

Thisisthecrucialsuccessmeasureofthetalent

supplychain.Governmentpoliciescanmakeiteasierfordomesticandinternationalenterprisestoestablish

captivecenters,outsource,offshore,andhire

contingentorfull-timeworkers.Somepoliciesthathelpmakethishappenincludefavorabletaxand

outsourcinglaws,enablingEnglish-language

proficiency,strongdatasecuritylaws,anddomesticstability.

Talentdisplacementacrosscountriesindicatesthatthereisastrongcorrelationbetweentrainingand

employmentopportunities,anditreinforcestheimportanceofacomprehensiveapproachto

regeneratethetalentsupplychain.Countriesmustaccountforattractingandretainingbothcompaniesandtalent.Forexample,29percentoftop-tierAI

researcherscomefromChina,butonly11percentworkthere.Conversely,20percentoftop-tierAIresearcherscomefromtheUnitedStates,but59percentworkthere.

Talentsupplychainregenerationiscyclicalanditerative.Countriesthatcorrectlyidentifyskills

requiredandstrategiestofulfillthemcancapture

immediateeconomicbenefits.However,incentivizinglargerenterprisestoprovidetrainingandbuildinganecosystemofpartnerscanenabletalentregenerationforthelongterm.

Countriesmust

accountfor

attractingandretainingbothcompaniesandtalent.

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex5

Intensityoftechnologyinnovation

Relativetalentregeneration

performanceofthetop25GSLI-rankedcountriesandacloser

lookatthosethatshowstrongcapabilities

Talentregenerationisdefinedastheabilitytocreatelastingvaluebyupskillingtheworkforcetobridgethesupplyanddemandgapcreatedbytechdisruptions.

Toindicateacountry’srelativeperformancein

executingthesestrategies,wehaveassembleda

talentregenerationmatrixofthetop25GSLI-rankedcountriesacrosstwopillars(seefigure2):

—Thefocusondigitalskillenhancement.This

measuresthelevelofdigitalskills,depthof

educationalinstitutions,responsivenessofthe

ecosysteminadaptingtoemergingtechnologies,andgovernmentsupportinenablingdigitalskill

development.

—Theintensityoftechnologyinnovation.This

measurestheinnovationpotentialaswellasthereadinessoftheexistingtechnologyecosystemsusingtechnologypatentsandstart-ups.

Acountry’spositiononthematrixisdeterminedby

thelevelandavailabilityofdigitalskills,educational

institutions,patents,start-ups,andgovernment

support.Thematrixhighlightstheopportunityfor

countriessuchastheUnitedStates,China,theUnited

Kingdom,Germany,andSingapore,whichare

well-positionedtofuture-prooftheirworkforcesandridethewaveoftechnologydisruption.

Withtheemergenceandadoptionofdigital

technologies,cost-centricservicelocationsareatriskoflosingtheircompetitivenesstomoredeveloped

andtechnologicallyadvancedcountriesasmore

workandprocessesareautomated.Talent

regenerationwillbethebackboneofthisshift.The

fasteracountrycanact,thebetteritwillbeableto

createlastingvalueasaservicehub.Traditional

offshoringleaderssuchasIndia,China,Malaysia,

Indonesia,Vietnam,Brazil,Thailand,andMexicowill

needtoinvestheavilyintalentregenerationasthe

laborcostadvantagebecomeslessrelevantgiventhetechnologicaldisruptionsandsocioeconomicfactors.

Whencomparingourmatrixtothe

2021GSLI

digital-centricscenario,inwhichweevaluatedwhatthe

rankingswouldlooklikeifdigitalresonancebecametheprimarylocationselectioncriterion,wefound

mostofthecountriesthatshowcaseddigitalpotentialhavealsoproventobecapableoftalentregeneration.

Figure2

Talentregenerationmatrix

ofthetop25countrieson

theGSLI

.Countryrankedtop10

Countryranked11–25

○Bubblesizerelatesto

thesizeofITworkforce

Thedegreetowhich

talentregenerationmeets

thepaceofinnovation

Note:Keytechnologiesincludeartificial

intelligence,machinelearning,cloud,data

andanalytics,andblockchain,amongothers.

Sources:WorldIntellectualPropertyOrganization,Pitchbook;Kearneyanalysis

UnitedStates

China

India

UnitedKingdom

Germany

Singapore

Canada

Estonia

Poland

BrazilColombia

Indonesia

●Malaysia

Mexico

HungaryLatvia

Egypt

Thailand.

PhilippinesBulgaria

PortugalUnitedArabEmirates

.Japan

Georgia

Vietnam

.

Focusondigitalskillenhancement

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex6

Next,weturnourattentiontoeightcountriesthatshowstrongcapabilitiesintalentregeneration.

India(GSLIrank1)isatraditionalleaderin

outsourcingbecausethecountryhasaskilled

workforceatalowcost.DemandisboomingforAI,

ML,anddataprocessingskills,whichareexpectedtobethetoptechnologiesinthenextfiveto10years.

Seizingtheopportunity,thegovernmenthas

launchedprogramssuchasPMKaushalVikasYojana4.0toupskill4.7millionpeopleoni4.0technologiessuchasAI,3Dprinting,drones,andtheInternetof

Things(IoT).Tokeepthemomentum,Indiaisbuildingonitsstrongscience,technology,engineering,and

math(STEM)backboneandeducatingyoung

studentsoncrypto,AI,andothernew-age

technologiesundertheNationalEducationPolicy

2020.ThenewNationalDataGovernancePolicywillstrengthenIndiaasahigh-skill,low-tomid-cost

marketandfulfillthevisionto“MakeAIinIndia.”

China(GSLIrank2)isatechleaderfocusingon

self-sufficiencyamidthetechstackwarswiththe

west.Aleaderinfilingtech-basedpatentsonAI,ML,quantumcomputing,blockchain,andcloud,China’seconomyisleadingintheadoptionofdigitalization

withastrongfocusondigitalskillsenhancement.ThenationisbuildingastrongSTEMeducationsystembyintroducingemergingtechnologiessuchasAI,

analytics,and3Ddesignalongwithhighcognitive,social,andemotionalskillsatanearlystage.In

addition,manyapplication-orienteduniversitiesareopentoflexiblepaths,suchasthe“3+4”program.In2021,morethan300universitiesofferedfull-time

coursesinAI.Thegovernmentisalsoworkingwithemployerstodevelopindustry-specificframeworks

thatidentifytheskillsthatworkersneedtosucceedineachindustry,andemployersareinvestingintraininganddevelopmenttokeeptheiremployeesuptodateonthelatesttechnologiesandtrends.StrongPISA

statisticsandavarietyofindustryandacademia

partnershipsarekeepingthemomentumgoing.3

Despitegovernment-fundedandpublic–private

initiativestodevelopdigitalskills,Chinaisfacinganuncertainworkforcesizeinthemidandlongtermbecauseofitsagingpopulationandlowbirthrate.Theone-childacthasbeenamajorcontributing

factortotheflatteningandcontractingofChina’spopulation.

EventhoughBrazil(GSLIrank4)islowonthe

intensityoftechnologyinnovationcomparedwithotherdevelopedeconomies,itssheerscaleandavailabilityhelpitscase.Thecountryishometo

numerouscaptivesandtechnologyhubs,with

companiesestablishingorexpandingtheirinnovationhubs.Digitalizationacceleratedduringthepandemic,

andBrazilhasbecomeahotbedfordigital

investments.

TheUnitedKingdom(GSLIrank5)techsectorhas

becomea$1trillioneconomy,trailingonlytheUnited

StatesandChina,anditisoneofthestrongest

ecosystemsinEurope.ItsstrengthliesintheUK’s

deepscienceandtechbackground—ithasthemosttechnologypatentsfiledinemergingtechnology

suchasAI/ML,automation,blockchain,robotics,andotherdigitaltechnologies.With3milliontechworkersandmanyworld-classcompanies,theUKisgearing

upforupskilling.ItisfocusingondigitaleducationinschoolsandkeepingSTEMgraduatesaheadofthe

curveintermsofskillsandknowledge.Governmentplanstoinvestindigitalskillstrainingandother

programs,suchasfunding1,000PhDsand

scholarshipsinAI,havehelpedboostapprenticeanddigitalskillreadiness.TheUK’s3,000ed-tech

start-upsarehelpingpeopleupskillandreskill

themselvesintechnologyroles.Thestrongeconomy,skilledworkforce,andfavorablebusiness

environmentaremakingtheUKarisingstarasa

digitalservicecenter.Thisstrongdigitalfocus

broughttheUKintothetopfiveintheGSLIthisyearforthefirsttimeever.

Talentregenerationiscriticalfor

countriesto

maintainingand

enhancingthe

attractivenessof

offshorelocations.

3PISAistheprogramforinternationalstudentassessment.

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex7

TheUnitedStates(GSLIrank8)isusingitsinnovationfocustoupskillitstalent.MorethanathirdofUS

companiesarealreadyinvestingintrainingprograms

toimproveworkforceavailability.Government

initiativessuchastheNationalArtificialIntelligence

InitiativeActarehelpingtheeconomybringmore

investmentsintoAIdevelopmentwhilecreatinga

moreskilledworkforce.Thegovernmentalsoplanstoinvestabout$20billionindigitalskillstraining,and

manycompaniesareinvestingintheiremployees’

digitalskills.Advanceddigitalskillsareexpectedto

raisethecountry’sGDPbyabout$1.1trillionayear.4Educationalinstitutionsarealsoplayingaroleby

offeringmoreAIandemergingtechcourses.Since

2011,therehasbeena120percentannualincreaseinAI-relatedbachelor’sdegrees,withmorethan

140,000earnedin2021.Theboomingstart-up

ecosystemisincreasingthedemandforadvancedskillsintechnology,leadingtothepushfortalentregeneration.

Singapore(GSLIrank14)jumped24spots,primarilybecauseofitsdigitalresonanceandcapabilitiesto

fosterinnovation,whichisreflectedinthecountry’s

thrivingtech-basedstart-upecosystem.Itstech

economywillneedanother1.2milliondigitallyskilledworkersby2025,andwithdemandgrowing,theneedforasuitableworkforcewillalsogrow.Tomeetthis

demand,thegovernmentisworkingthrough

research,innovation,andenterpriseplans,includinga$19billioninvestmentoverafive-yearperiodto

advanceitsR&Dlandscape.5Singaporeisinvestingintrainingprogramsandinitiativestohelpworkers

developtheirskillsandinsupportinitiativessuchas

SkillsFutureSingapore,TechSkillsAccelerator,and

IndustryTransformationMaps.Private-sectorfirms

arealsoinvestinginthedevelopmentofaskilled

workforce,andmanyprivatecollaborationsareaimedatupscalingprivatecompaniesandeducational

institutions.

Germany(GSLIrank17)hasdriventheautomation

andanalyticsrevolutioninEuropethankstoitsstrongindustrialbase,researchinstitutions,andgovernmentsupport.Reskillingisimportant,asthecountryis

movingtowarddigitalizationandsustainability.Thegovernmentisnotonlyjoiningprivate-sector

organizationsbyinvestingheavilyinreskilling

initiatives,butalsoworkingtoupskilltheworkforcetoreducetheskillsgapandboosteconomicgrowth.

SkillsinAI,ML,andbigdataarebeingprioritizedoverthenextfiveyears,andthegovernmentisinvestinginupskillingSTEMgraduatestoensureadigitallysoundworkforcetocompetewithfutureeconomies.

LocationssuchasCyberValleyinStuttgartandthe

BerlinCenterforDigitalTransformationareemergingasAIhubs,fosteringcollaborationandknowledge

exchangeamongbusiness,academia,andresearchinstitutions.

Canada(GSLIrank22)isfocusingonSTEM,upskillingandreskillingitsworkforceforAIthroughgovernment

initiativesandapprenticeships.In2023,the

governmentannounceda$250millionprogramto

supportshort-cycleupskillingprogramsdrivenby

industryneedsinhigh-growthsectorsaimedat

helpingmorethan15,000workers.Canadajumped24placesintheGSLIbasedonitsproximitytothe

UnitedStates,itsabundantITworkforce,andits

digitalcapabilitiestosupporttheUnitedStatesasanearshorelocation.Thecountry’splantoaccept1.45

millionimmigrantsby2025tocombatitslaborshortageshouldstrengthenitsposition.

It’sclearthatthecountriesthatemphasizetalent

developmentandrefreshedskillsarepoisedto

performwellasoffshorelocations.Thosethatexcelwillalsobefairlywell-equippedtoperformwellin

digitalresonance.

4GDPisgrossdomesticproduct.

5R&Disresearchanddevelopment.

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex8

The2023GlobalServicesLocationIndexThe78countriesinthe2023GSLIwere

selectedbasedoncorporateinput,currentremoteservicesactivity,andgovernmentinitiativestopromotethesector.

Themostimprovedcountries

Astechnologiessuchasartificialintelligence(AI)andmachinelearning(ML)continuetomature,

automationbringsmorejobsonshoreandnearshore,whilepure-playinformationtechnology(IT)

outsourcingandlaborarbitragearelosingtheir

sheen.Thesechangeshaveincreasedtheimportanceofreskillingtheworkforcetokeepupwiththepaceoftechnologyinnovation.Asaresult,wehaveupdatedsomeoftheskillsanddigitalmetricsusedinthe2023Indextoreflectemergingrealities.Thisshifthas

broughtcountriessuchasCanada,Poland,and

Singaporeintothelimelightasemergingtechnologydestinationsandinnovationhubs.

Thesevenmostimprovedcountriesareshownin

figure3.

Figure3

Thesevenmostimprovedcountriesinthe2023GSLI

Country

2023rank

2021rank

∆

Singapore

14

38

24

Japan

18

22

4

Hungary

19

37

18

UnitedArabEmirates

21

25

4

Canada

22

46

24

Morocco

28

40

12

SouthKorea

37

41

4

Source:Kearneyanalysis

Regenerativetalentpools|The2023KearneyGlobalServicesLocationIndex9

PhotobyJuanLlanos

Kearney,Dallas,TX

Aregion-by-regionlookatthe

performanceofselectcountries

Acountry’sabilitytoregeneratetalentisstronglycorrelatedwithdigitalresonance,whichmeasuresthedigitalskillsofthelaborforceandthedigital

outputsofbusinessactivity.Therefore,digital

resonanceisbecomingaperformancedifferentiator,andthereisastrongneedfornewskillsinareassuchasAI/ML,cloud,data,analytics,andblockchain.

Next,weofferaregion-by-regionlookatthedigitalservicesperformanceinselectcountriesnot

discussedin-depthabove.

LatinAmerica

LatinAmericaisbenefittingfromitsproximitytotheUnitedStatesandnearshoring.Mexico(GSLIrank10)

drewarecord$35.3billioninforeigndirect

investmentin2022,withalargeportioncomingfromtheUnitedStates.Asmoreorganizationsturnto

Mexicoasaneffectiveandcost-effectivechoicefor

outsourcing