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Foreign IT companies have started choosing small cities instead of big and known cities like Bangalore, Delhi and Mumbai. Outsourcing expert Mr. Alsbridge, who has done international research, has said that the chances of getting better outsourcing work are more in the small cities, than in big cities like Bombay, Delhi and Bangalore.

International companies are turning towards other top ten cities instead of the three mega cities. Now they prefer cities like Ahmedabad, Chennai, Hyderabad, Cochin, Kolkata, Nagpur, Pune, Tiruvananthpuram and Vishakhapatnam.

An outsourcing research company of Dallas has considered Ahmedabad as the most attractive outsourcing hub. This research company has stated that the Gujarat Govt. is supporting the development of infrastructure for outsourcing. HP and Oracle has already found land for development of infrastructure in Ahmedabad. While choosing an outsourcing hub from small cities normally variables like population, accessibility, education and workforce are taken into account.

According to Mr. Trobridge, CEO of Alsbridge, initially the trend was that when international companies thought of India they considered Bangalore and Bombay only for getting work done. However India is a country of many small cities and now they realized that even the second ranked cities of India have enough potential for outsourcing. Alsbridge says that There will be more consolidation in a short time and there will be no shortage of human resources. According to this research report, in US only 6% operative margin is available whereas in India you can achieve operative margin up to 40%. The Indian IT company can offer services at 20% less price then the US companies.

Key Points:

 Small cities are outsourcing hubs
 Ahmedabad is considered to be the most attractive city for outsourcing
 Dallas gave first rank to Ahmedabad in the category of small cities
 Oracle and HP also preferred Ahmedabad

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