Best New IT Outsourcing Hubs

Published by slang March 13th, 2007 in Outsourcing

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We normally associate IT outsourcing mainly to India in places like Bangalore. However, with the passage of time, higher labor costs and turnover rates made companies also look at elsewhere to get their outsourcing needs.
A list compiled by management consulting firm neoIT on the new outsourcing hubs which are based on the following criteria:

availability and skill of workers,
cost competitiveness,
quality of the local infrastructure such as transportation, and the risks of doing business in each city

Take note that the cities are listed alphabetically, as there is no ranking.

1	Buenos Aires, Argentina	Open-source technologies	Accenture EDS Stefanini IT Solution	Big IT investment in the 1990s was followed by the devaluation of the peso in 2002, driving the need for IT workers to use open-source, or freely available, software
2	Bucharest, Romania	Security systems development and software testing	Genpact Wipro Infosys Accenture	A high availability of qualified personnel and the city’s proximity to Western Europe make it attractive. Even better, prices are 40%-50% lower than in Western Europe.
3	Dalian China	Application development	Genpact Accenture IBM Global Services	Dalian has a high availability of workers who are proficient in medium-level IT activities. Proximity to Japan and workers who are fluent in Japanese make it appealing to Japanese companies
4	Ho Chi Minh City, Vietnam	Low to medium level application maintenance and technology support	Glass Egg Digital Media TMA Solutions First Consulting Group FPT Software	Labor is cheap here, costing even less than in India, and workers are adept at performing labor-intensive IT support services.
5	Moscow	High end software R& D; development of embedded software, or programs that reside within a specific device	IBM Global Services Luxoft EPAM	There’s an availability of highly qualified engineering talent, specializing in R&D and high-end product development
6	Mexico City	Custom application development	EDS Stefanini IT Solutions	Having the same time zone as parts of the U.S. and fairly good availability of skilled labor make the Mexican capital a good place for software projects that require extensive collaboration with U.S.-based teams.
7	Prague, Czech Republic	IT systems management services	Accenture EDS	Prague’s good infrastructure and proximity to Western Europe make it a good place for companies that want easy access to outsourcing providers
8	St.Petersburg Russia	High end software R&D, embedded software development	IBM Global Services Luxoft EPAM	St. Petersburg is an important educational hub, with a large number of institutions offering relevant courses for developing high-end programming skills
9	Santiago Chile	IT infrastructure and systems management; high end software development	EDS Stefanini IT Solutions	Good supply of educated, IT-proficient workers in Santiago, and it’s an alternative hub for companies that want to consolidate IT services
10	Sao Paulo, Brazil	Support and maintainance for enterprise resource planning systems, or software for running a business	Accenture EDS IBM Global Services Politec Stefanini IT Solutions	Companies in Brazil have been providing IT outsourcing services to other Brazilian companies for years, so there’s a proficient labor pool in Sao Paulo.

(Source: BusinessWeek.com)

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