What are the pros/cons of having a back office in a low cost of living country?

Fahad Uddin Computer systems engineer and investor

July 29th, 2017

I would like to start a debate of pros and cons of having a back office in a low cost of living place like Karachi, Pakistan. The cost of hiring a mid level developer here is $550/month and there is plenty of great resources available. Wondering why would a company chose not to build an office here?

Matiss Founding angel, Picoff Ventures, picoff.com

August 1st, 2017

Cost of operation is probably the only pro I can think of at the moment.

Cons, however, are slightly easier to list.

  1. World Bank ranks Pakistan in 144th place out of 190 by ease of doing business. That means there are 143 other countries where it's better to do business according to WB
  2. Infrastructure is generally poor
  3. Any legal disputes and contract enforcement in courts takes literal age of the universe apparently.
  4. Massive issue with corruption.
  5. Availability of talent.

Yanfeng Lee CEO of an independent advertising agency and co-founder in a shopper marketing and digital agency

August 15th, 2017

In my line, I've set up a few back office operations and the drawback is always lack of eduction, training, mid level guidance and connectivity.

the cost savings are worth it for me though, save nearly 50-100k per annum.