31 Cities With Outsourcing Potential
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Forget Chennai and Mumbai. The outsourcing hubs of tomorrow will be in Guadalajara and Gdansk.
An eclectic mix of 31 cities worldwide will challenge today's best-known outsourcing centers in China and India, according to a new report from professional services giant KPMG.
Faced with overburdened telecommunications infrastructure and overstretched labor markets in traditional offshore locations, these cities are among the alternatives that should be considered by companies, the report says.
The report found that the new cities in the Asia-Pacific region offer lower costs, younger populations, and government incentives such as easy work permits, while those in Europe, Middle East, and Africa promise robust telecommunications and power infrastructures and niche specialization in fields such as data management.
Meanwhile cities in the Americas can draw on large labor pools, a more mature service offering, proximity to major client bases, and multiple language skills.
Size is not a deciding factor among these emerging cities on the list. The cities range from tiny Port Louis in Mauritius with 130,000 residents to the metropolis of Buenos Aires, home to almost 13 million people.
A more important factor is the proportion of computer graduates, the number of research and development institutions, the rate of migration to the cities, and common languages with their target markets.
The full list of cities:
Americas
Boise, Idaho, USA
Buenos Aires, Argentina
Calgary, Alberta, Canada
Campinas, Brazil
Curitiba, Brazil
Guadalajara, Mexico
Indianapolis, Ind., USA
Queretaro, Mexico
Santiago, Chile
Winnipeg, Manitoba, Canada
Asia-Pacific
Ahmedabad, India
Brisbane, Australia
Changsha, China
Davao City, Philippines
Hangzhou, China
Ho Chi Minh City, Vietnam
Iloilo City, Philippines
Jaipur, India
Nagpur, India
Penang, Malaysia
Europe, Middle East, Africa
Belfast, Ireland
Belgrade, Serbia
Cairo, Egypt
Cluj-Napoca, Romania
Gdansk, Poland
Lviv, Ukraine
Port Louis, kynghidongduong.vn Mauritius
Rostov-on-Don, Russia
Sofia, Bulgaria
Tunis, tour du lịch phượng hoàng cổ trấn Tunisia
Zagreb, Croatia
Nick Heath of reported from London.
