Canada is a close and safe option for American companies, but rising costs reduce its appeal.
A guide to outsourcing in Canada.
- Overall Ranking: Declining
- Average 2nd Year Programmer Salary: More than $20,000
- Geopolitical Risk: Low
- English Proficency: Excellent
- Pros: Second largest outsourcing market in the world (after India), earning nearly $13.7 billion in IT and BPO. Capability for complex integration technology and services. Fifth in people and skills availability, according to A.T. Kearney. Attractive nearshoring option for U.S., with high-quality service, low risks. Low turnover. Ideal spot for English-speaking call centers.
- Cons: Shift in exchange rates undid much of previous advantage in labor arbitrage, property overheads. Some U.S. cities now cheaper. May continue to lose attractiveness as services offered by lower-cost countries mature.
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