The Top 5 Countries for Outsourcing in Western Europe

Western Europe plays host to some of the world’s largest economies. Due to their high cost of living, European outsourcing opportunities are often seen as being too expensive.

Though Western European countries are often associated with high labor costs, they offer a variety of highly-skilled workers that are very accessible to the U.S. For that reason, many European countries were well-ranked in the most recent A.T. Kearney index.

We’ve put together a list of the top five countries for outsourcing in Western Europe. You might want to consider one of these countries for your own international labor needs.

1. Germany 

   With over 81 million citizens, Germany is the most populous nation in western Europe. It’s economy also ranked fourth on the IMF’s list of countries with the highest GDP in 2017. 

   Germany also performed well on the A.T. Kearney index, beating out the United Kingdom to score in the top 20 overall. In particular, Germany scored well for people skills and availability.That is because Germany’s workforce is what gives it the true advantage over other countries. Census data shows German workers are as adept at the English language as any other country in Europe. And according to Outsource Portfolio’s “Enter Germany” document, their labor force is also connected with a well-rounded telecommunications infrastructure.

   U.S. companies that are looking to outsource work overseas might want to consider the capable, English-speaking workers they’ll find in Germany.

2. United Kingdom 

   Uncertainty over the Brexit vote has caused the exchange rate for the pound to drop, improving the U.K.’s overall cost competitiveness. The improved currency advantage was almost enough to give the United Kingdom our highest placement on this list. 

   The U.K. moved into the top 20 on the A.T. Kearney rankings for the first time, beating out Germany in people skills and availability. The index classifies the U.K. as a tier 2 location, which makes it a logical alternative to offshore markets.

3. Portugal 

   Portugal’s improvement in cost competitiveness makes it an appealing alternative to more expensive economies in western Europe. Portugal has also made notable investments in education and infrastructure, resulting in a workforce that is capable of delivering quality work. 

   Portugal came in 12th out of 58 countries in IMD’s 2009 ranking, beating both the U.K. and Spain in language skills. Their strong labor market is comparable to larger economies like Germany and the U.K.

4. France 

   France has the 22nd largest population in the world and a highly skilled labor market. In 2017, the A.T. Kearney gave France high ranking for people skills and availability and business environment.However, France did score among the lowest on financial attractiveness in Western Europe. France also fell three spots from their ranking in the 2016 A.T. Kearney index.

5. Spain 

   This year, Spain dropped three spots and barely edged out Ireland on the A.T. Kearney index. Spain did outperform Portugal for people skills and business environment.

Are you interested in learning more about global outsourcing? Clearfront HR can help your company expand to over 150 countries and counting.  Contact us to discuss your outsourcing strategy and to learn about the resources available in western Europe.