Move over China--the best markets for outsourcing are all major metropolitan areas in India
Dallas, TX (PRNEWSWIRE) - March 28, 2007 - Alsbridge, the award winning outsourcing, offshoring and shared services advisory firm, announced today that its internal research shows India has more growth potential than just the usual top picks – Bangalore, Delhi and Mumbai. The cities that have the most potential to be the next big outsourcing hotspots for major corporations worldwide include: Ahmedabad, Chennai, Hyderabad, Kochi, Kolkata, Mangalore, Nagpur, Pune, Thiruvananthapuram and Visakhapatnam. These cities were chosen based on several factors including population, accessibility, education of the workforce and existing companies who have businesses in these cities. (A more detailed report on each city, along with commentary including accessibility, educational institutions and existing outsourcing companies may be viewed at:
http://www.outsourcingleadership.com/nexttop10indiancities.jpg
“When most people think of India, they think of just one or two big cities like Bangalore or Mumbai,” said Ben Trowbridge, Alsbridge CEO. “However, the reality is that India is a very big and complex country with many cities that would be large enough to support an NFL franchise if they were in the U.S. Even beyond the next tiers that are commonly mentioned—Hyderabad, Chennai and Pune—the country has a lot of other major urban areas that have just as much, if not more, to offer as outsourcing locations.”
Alsbridge believes that in the next few years, providers will consolidate and move even more of their labor to India. A report released by the company last week says the operating margins of U.S. providers have hovered around 6 percent over the last decade, whereas outsourcing providers in India are able to achieve operating margins up to 40 percent. Providers in India are also able to provide similar services as much as 25 percent cheaper than in the U.S.
"Some people have speculated that the future of outsourcing lies in China, but there are many challenges to be faced with this," said Trowbridge. "American corporations looking to outsource in China face many obstables such as language barriers, intellectual property and other legal issues. India doesn't share these concerns. We believe that many companies that want to stay competitive will be focusing their outsourcing operations in one of these top cities in India, and they'll be very successful in doing so." |
