Companies are finding that in some cases, the best place to send work offshore is off the beaten path.
Consider Areva T&D, a maker of technology that manages electrical grids. In looking abroad for places to locate software development, the Philadelphia company has gone to such locales as Trivandrum, India; Kiev, Ukraine, and Shanghai, China. One of the benefits of outsourcing in Trivandrum is that there's very little employee turnover because it's a smaller town, says Ralph Kappelhoff, the director of worldwide automation systems R&D at Areva T&D. Longevity is key because Areva's software is complex and it takes a year for developers to get up to speed, he says.
Each year, outsourcing advisory firm Tholons ranks the top cities for emerging outsourcing, using such criteria as the size and quality of the workforce, the cost of doing business locally, and the quality of infrastructure. The following list excludes the eight best-known outsourcing destinations: Dublin, Ireland; Makati City in the Philippines; and Bangalore, Chennai, Delhi, Hyderabad, Mumbai, and Pune in India.
This BusinessWeek.com slide show highlights the 10 cities that did make the list.