Out Sourcing opportunities in TURKEY

Background

•Turkey is the eastern-most European country. It acts as a gateway to the East the culture of Turkey proves to be an amalgamation of these Eastern and Western influence

•Turkey is able to act as a mediator for businesses that share markets in the Middle East and Europe

•its proximity to Asia provides opportunities for businesses whose business process outsourcing initiatives demonstrate a reliance on Central Asian countries.

Strength Fast growing economy

• As of 2011 they are 17th in the world for GDP.

• Changed the buy/make local policy to open up

free markets and promote import and export

Opportunities.

Investment incentives

•Foreign Direct Investment is encouraged.

•There are many opportunities for global investors to

come into Turkey and continue to build up the tourist

destinations

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• Location

Due to the fact that Turkey borders eight countries:

Bulgaria, Armenia, Georgia, Greece, Iran, Iraq,

Syria and Azerbaijan it is an essential hub for

importing, and exporting

• Turkey has great ties with Western and European

countries as well as the countries that surround them

• Very important for transferring goods from Europe to Asia

Opportunities • Become a member of the European Union.• Reduced Barriers, More Stability • Younger Population

Approximately 65-70 percent of the population isbetween the ages 15-65 yrs and henceforth providescountless opportunities for workforce manipulationand physical labour

• Increased Global Integration• Due to increased global integration as a nation, this

in of itself presents opportunities for open-minded investors, as this shows the countries increased willingness to in co porate and get involved with other nationalities and economic sectors

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• Incentives

• New investors can take advantage of increased incentives and tax allowances to increase and encourage Foreign Investment and boost economic activity.

• Based on the heavy influence, focus and saturation of the services and industrial sectors of their local economy, new investors and facilitators of F.D.I will be able to possibly benefit from first mover advantages and its provisions

Weakness

• Political and Legal Issues

• Corruption Levels

• The Constitution provides for freedom of religion, and the Government generally respects this right in practice; however, the Government imposes some restrictions on Muslim and other religious groups and on Muslim religious expression in government offices and state-run institutions, including universities

Issues Regarding Religion

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• Issues Regarding Religion

• There was some improvement in the status of respectfor religious freedom during the period covered bythis report. Nevertheless, some Muslims, Christians,and Baha'is faced some restrictions and occasionalharassment, including detention for allegedproselytizing or unauthorized meetings. TheGovernment continued to oppose "Islamicfundamentalism." Authorities continue their broadban on wearing Muslim religious dress in governmentfacilities: including universities, schools, andworkplaces.

• Equality Issues.

• Men and women are not treated as equal

Threats

• Terrorism and War

• Location and Territorial Issues

• Syria and Iraq protest Turkish hydrological projectsto control upper Euphrates waters posing possibleproblems with sabotage.

• Neighbouring country territorial disputes couldpose a challenge for foreign investors through wayof border relations/complications.

• Crime Rates: Highly lucrative underground sex-slave trade provides opportunities for hoodlums and criminal activities and spike of crime rates

Why to outsource in Turkey.

• According to Goldman Sachs Chief Economist, Jim O’Neill, Turkey has “high potential to become one of the world’s largest economies in the 21st century”.

• Turkey is the 15th largest economy in the world and the 6th largest in comparison to the EU countries

• Furthermore, in

• 2008, Turkey produced nearly 730,000 high school graduates with one third of those graduates coming from technical, professional, and vocational high schools

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• Furthermore, the constant growth the country has experienced makes investing in Turkey a safe country to outsource to because there is minimal risk of an economic collapse.

• As a percentage, the increase in real GDP growth is 7% per year for the last 6 years. In comparison to other countries

What to Outsource

• outsourcing in Turkey can be seen through the countries Technology Development Zones (TDZs), which areas that are designed to be conducive to research and development and to attract foreign investment

• Turkey also maintains over 250 Organized Industrial Zones (OIZs) that provide existing infrastructure, tax exemptions, and lower water, natural gas, and telecommunication costs.

• Outsourcing logistics activities in Turkey, a country which has a great potential for logistics activities among the surrounding continents because of its geographical location.