Offshoring to Multiple Sites Favored Amid Saturation in Indian Market

Submitted by jcherian on Tue, 07/14/2009 - 16:00

According to recent published reports, market saturation and rising prices in India are urging outsourcers to look elsewhere, and these sites include Brazil, Vietnam, and China.

IDG News Services reported that China could be climbing the ladder among the favored spots as a destination for offshoring. However, the word among many outsourcers is that they are investing in more than one offshore location - that translates to locating in countries other than India and is some cases multiple countries. What's the cause for this relatively new phenomenon in offshoring? Well, India's soaring prices and demand in its outsourcing market are both contributing factors. And both of these factors have spurred multinational firms to consider offshoring to countries including China, Vietnam and Brazil.

Several outsourcing firms are in the process of tapping skills and talents in numerous regions and this is best done through outsourcing to several countries. This is the situation with Hanover Insurance, a firm based in the U.S. The company utilizes India as one of several offshore sites. However, the firm currently also sends some work to Canada as well as China. The company made its entry into China last year when it needed the capability to quickly ramp up or down the number of employees for specific projects.

Michael Clifton, CTO at Hanover said in a statement, each location or region has unique skills to offer. The company has partners to take care of mainframes in India since the country has top professionals who can accomplish this task. At the same time, the company's partners in Canada work on R&D like figuring out how the younger generation perceives insurance. Integrated into Hanover's offshoring program is its Chinese site, which is set up for rapid scaling of application design projects.

Hanover is finding scaling is fairly easy in the Chinese Republic. Workers at Chinese sites normally range from 50 - 75. However, if the need arises, that figure can go up to 100.