KPMG has identified 31 cities that are emerging as business process outsourcing hotspots. The company unveiled its Exploring Global Frontiers report at the Nasscom outsourcing event in India.
The consulting company says the credit crisis seems set to prompt a new rush for outsourcing services across the IT sector.
These 31 cities are in countries ranging from Australia and Ireland to areas in South America and Africa. KPMG says these will challenge today's best-known outsourcing centres like Bangalore and Shanghai, which are approaching saturation point. Only three cities were selected from the African continent: Cairo in Egypt, Tunis in Tunisia, and Port Louis in Mauritius.
There is a sizable opportunity for these new and emerging locations to swallow up a large proportion of the new outsourcing work, which the credit crisis is apparently creating, says KPMG.
“Asia Pacific benefits from lower costs, younger populations, plenty of government incentives and the lessons learned from the numerous outsourcing centres, which already dot the region. The Europe, Middle East and Africa region offers great diversity, excellent infrastructure and numerous niche specialisms,” says KPMG.
Speaking at the report's launch, Edge Zarrella, global head of IT Advisory at KPMG, said: “However, there are subtle nuances in terms of labour skills, niche specialisms and government incentives, which have led us to highlight these 31 locations as stars of the future.
“The need to develop new, cost-effective, viable outsourcing locations has been highlighted by the economic events of the past few months. Companies are focused on reducing their cost base, both for short-term and long-term gain.”
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