Tuesday, May 17, 2011

Cities That Could Steal Your Job: New Outsourcing Hot Spots

By Mark Scott

Sending jobs overseas is controversial in the best of times—and even more so when the recession is forcing layoffs all around. Just look at the proposal floated May 3 by U.S. President Barack Obama to tighten tax loopholes he says encourage companies to ship work abroad.

Yet in the hunt to shrink overhead, outsourcing continues unabated, particularly in the IT sector. Problem is, classic destinations such as Bangalore aren't as cheap as they used to be. Competition there among foreign firms has pushed up local costs, and staff turnover is high as well-trained employees jump to rivals. That's forcing clients to consider other places for outsourcing. From overlooked American cities such as Boise, Idaho and Winnipeg to more exotic locales like Cluj-Napoca, Romania, or the Philippines' Iloilo City, dozens of areas around the world are trying to grab a slice of the outsourcing business.

Obama's controversial plan to collect more taxes on foreign profits made by U.S. companies could tip the balance back towards domestic outsourcing. But there will always be other factors at play, so up-and-coming outsourcing destinations around the world still have room to grow. Click on to learn about 31 emerging global hot spots.

Statistics provided by KPMG and the World Bank

Asia Pacific: Iloilo City, Philippines

Population: 419,000
Ease of Doing Business Rank (Philippines): 140
Rigidity of Employment Index (Philippines): 35

Already identified by Philippine authorities as one of the next wave of IT outsourcing centers, Iloilo City has received large government grants to upgrade its IT and transport infrastructure. The well-trained, English-speaking population makes the city an ideal option for companies looking for a cheap alternative for U.S. consumer support.



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