Economy: Competitiveness

Economic competitiveness is important to the long-term growth prospects of an outsourcing location. The Global Competitive Index is the most comprehensive metric covering overall economic and business competitiveness of different countries.

The United States tops the list with an overall index of 5.5. Of the large offshore outsourcing locations, China has the best score coming in at 4.7, while India is in the middle at 4.3 and the Philippines is at the bottom with a score of 3.9

The Global Competitive Index is published by the World Economic Forum in their annual Global Competitiveness Report. The index scores 133 economies from 0 to 7, with 7 being the best possible score. The index covers 12 pillars including institutions, infrastructure, macroeconomic stability, health and primary education, higher education and training, goods markets efficiency, labor market efficiency, financial market sophistication, technological readiness, market size, business sophistication, and innovation.