On July 25, the Global Services Location Index (GSLI) published by consulting company Kearnes for 2023 indicates that Uzbekistan has made its debut in the 40th position out of 78 countries. The GSLI evaluates countries based on four key criteria: financial attractiveness, availability and skills of staff, business environment, and digital resonance.
One of the significant strengths of Uzbekistan is its financial attractiveness, where it received a score of 2.88, ranking slightly below Pakistan and Sri Lanka but still higher than countries like Indonesia and Egypt. This suggests that Uzbekistan offers competitive salaries and infrastructure spending, making it an appealing destination for offshoring secondary business functions.
However, Uzbekistan faces challenges in other indicators. The availability of qualified personnel is a concern, as it received a low score of 0.63, comparable to countries like Kazakhstan, Ghana, and Iceland. This indicates that the country needs to focus on improving its skilled labour pool to attract more businesses and investment.
In the business environment category, Uzbekistan earned 1.1 points, which puts it in the same range as the Philippines, Peru, and Argentina. While this is not a poor score, it demonstrates that there is room for improvement in terms of creating a more favourable business climate to attract international companies.
Additionally, Uzbekistan scored relatively low in digital resonance, receiving only 0.44 points. This suggests that the country's IT skills and volume of digital business services may be lacking compared to higher-ranking countries like the United States, Singapore, and Israel. To stay competitive in the global market, Uzbekistan would need to invest in enhancing its digital infrastructure and workforce capabilities.
Comparing Uzbekistan to other countries in the region and beyond, it lags behind some of its ex-Soviet counterparts. Estonia leads among ex-Soviet nations at the 16th position, followed by Georgia, Lithuania, and Russia. However, it's worth noting that Uzbekistan still has the potential to improve its standing over time if it strategically addresses its weaknesses and builds upon its strengths.
The top three countries in the GSLI ranking for 2023 are India, China, and Malaysia, showcasing their strong appeal as destinations for offshoring business functions.
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