BusinessCompany NewsKPMG finds new outsourcing hotspots

KPMG finds new outsourcing hotspots

Credit crunch fuels demand for IT outsourcing

Cities as diverse as Belfast, Winnipeg and Brisbane are emerging as new
outsourcing hubs to rival Bangalore, according to research by KPMG.

KPMG identifies 31 cities that are running more back office functions for
multinational companies and competing with leading outsourcing centres such
Bangalore in India, or Shanghai in China, which are approaching saturation
point.

Companies are now outsourcing business functions to other cities ranging from
the large — Buenos Aires in Argentina — to the small, Port Louis in Mauritius,
which has a population 130,000, KPMG said.

Cities that made the outsourcing league table had lower labour costs, younger
populations, government incentives, multiple languages and proximity to
companies’ major client bases, KPMG said.

‘Companies are focused on reducing their cost base, both for short-term and
long-term gain,’ said Shamus Rae, advisory partner at KPMG in the UK.

‘As a result, more organizations are considering savings obtained through
outsourcing parts of their operations. Most importantly, they should be
convinced that by doing so, they are not sacrificing performance for the sake of
cutting costs.’

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