What results can you expect from outsourcing? You can gain some insight on that topic by examining the experiences of top companies who outsource.

The Hackett Group, a financial research firm, reports that “World-class companies out¬source a substantially larger portion of their IT processes [44.5% compared to 30.2%] than peer group companies: close to half of all their technology infrastructure-related processes.”

Bank of America recently turned some of their programming work over to an offshore provider, with excellent results; the company has saved roughly $100 million since 2001.

But just as important was the impressive savings in time spent developing new products and services. By sending some of its work offshore, BofA became a 24-hour company. At the end of the workday, California programmers could hand off projects overnight to colleagues in India, who would continue the work and hand it back the next morning.

BofA’s chief technology, service and fulfillment executive, Barbara Desoer, says of the experience, “There’s a lot that we’ve learned from our vendors that we’ve been able to bring back to the U.S. “

Technology is not the only area in which top companies are successfully outsourcing. The IBM Corporation outsourced its contact center needs through TeleServices, with remarkable results. The company experienced a 97 percent reduction in the cost of customer contact and shortened their outside sales cycles by up to 80 percent.

The contact center agents, who received training to acquire the needed IBM product knowledge and customer service skills to represent the company, were able to generate 125 percent of the company’s goal for sales leads.

IBM customers reported that agents exceeded their expectations in 78 percent of calls. The call center provider also created a marketing database of customer data to improve targeting and responsiveness and increase customer retention.

Why are top companies outsourcing now more than ever? Business Week magazine put it succinctly, “Outsourcing is a strategic tool that can react faster to the demands of the marketplace and their customers. It allows companies to shift gears quickly while not losing their emphasis on maintaining the core business”.

Which countries offer the best selection of outsourced service providers?

Forbes Magazine recently published its appraisal of countries that currently provide the best options for U.S. businesses looking to outsource. Based on data compiled Electronic Data Systems and neoIT, a global outsourcing advisory firm, this list can help businesses narrow their search for quality offshore vendors. Here is an overview of four of these countries:

India boasts several outstanding technological universities, including the Indian Institute of Technology, universally regarded as one of the world’s best. Salaries range from $5,000 to $12,000 for technical staff. Wages for back office functions run from $3,500 to $7,500.

India’s redundant telecommunications infrastructure offers excellent reliability within the country’s specialized IT parks. India is currently the leading provider of IT functions such as software development and maintenance, as well as business process outsourcing (BPO), including human resources, accounting, data analysis and call centers.

Providers in the Philippines are well acquainted with U.S. accounting procedures and customer service values. Companies in the Philippines have low employee turnover. However, labor costs are higher than in India; annual salaries for tech employees are between $5,000 to $10,000, and back office salaries range from $3,000 to $8,000.

If you operate within one of the country’s IT parks, the government will allow exemption from export taxes, fees and licenses. The government maintains a task force responsible for the development of IT and BPO services. Telecom infrastructure is reliable. Areas of expertise in the Philippines include finance, accounting, call centers, human resources and animation.

Russia has the third largest population of engineers and scientists per capita. Few of them, however, speak English. Annual IT salaries in Russia range from $6,000 to $10,000. The country hasn’t yet developed back-office competence. Telecom infrastructure costs are higher than average.

The Russian government adheres to outdated tax laws that do little to facilitate business. However, future treaties with the U.S. could instigate positive changes. There are few technology parks in Russia, and infrastructure outside the parks is generally of low quality. Russia offers expertise in Web design, complex software development and aerospace engineering.

Canada offers a near-shore alternative for U.S. companies. However, salaries are considerably higher than in offshore countries, ranging from $25,000 to $50,000. Outsourcing to Canada involves little or no political risk, and the government allows tax breaks on IT exports. Canada has a solid telecommunications infrastructure. Expertise in Canada includes software development and maintenance, call centers and tech support.