Selecting an offshore services provider based primarily on the country in which it is located is a bit like choosing a car based on the fact that it has wheels and an engine. While those features must be considered, those who don’t also consider the subtler details are setting themselves up for disappointment.
As reported in Global Services, an increasing number of companies are narrowing the scope of their outsourcing considerations. Instead of considering whether to outsource services to a particular country, they are evaluating specific cities.
Costs of labor, real estate and telecommunications can vary widely from one region of a country to another, points out the Global Services article, especially in large countries such as India, China and Brazil. Indeed, we’ve blogged before about companies looking to employ workers in more cost-effective rural areas.