Smaller Indian Cities Get Outsourcing Attention

By Deb Perelman  |  Posted 2007-03-29 Print this article Print

By now, we've all heard of Bangladore, Delhi and Mumbai. But Ahmedabad? Kochi? Nagpur? In a report issued March 29 by global advisory firm Alsbridge, each of these Indian cities are listed among the potential locations for the next big outsourcing hot spot for major corporations worldwide.

Chosen for accessibility, education of their work force and the number existing companies who do businesses in these cities, all are expected to see a lot more activity and visibility in the coming year as providers continue to consolidate and move even more of their labor to India.

"When most people think of India, they think of just one or two big cities like Bangalore or Mumbai," said Ben Trowbridge, CEO of Alsbridge.

"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."

The report puts its money on the future of outsourcing locations in India, not China, iterating their reasons clearly.

"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 obstacles such as language barriers, intellectual property and other legal issues. India doesn't share these concerns."

Other cities which filled out the top ten included Kolkata, Mangalore, Thiruvananthapuram and Visakhapatnam. |

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