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In the month of April CIOZone ran a poll which asked members: "Where is the Best Place to Outsource?" The 10 options given were chosen in consultation with experts in the outsourcing business, who considered not only the current leaders for outsourcing but also up-and-coming locales.

For much of the month China led in the polling, but with only a slight lead over India. In the final days India closed the gap and won with 25.2% of the vote compared to China's 23.4% of the vote. A total of 111 votes were cast.

While it does seem somewhat surprising that India came out on top after having weathered a tumultuous year, Frank Casale, chief executive of The Outsourcing Institute, a vendor-neutral network of resources for the outsourcing sector, says India remains a top choice.

"India is still solid and strong in spite of what happened," he says. "It continues to be the 800-pound gorilla and will continue to be for some time."

In fact, Casale says he has spoken to a number of Fortune 500 companies who are looking at doing more in India, not less, however they have been somewhat reluctant to air their plans. "Understandably, this is not a good climate to be speaking publicly about outsourcing," Casale says in reference to layoffs in many sectors and protectionist sentiments at home.

While China was a clear second choice among poll participants, Casale says it still is an immature market compared to other locations. Language remains a challenge as well as cultural differences, and China has yet to market itself strongly as an outsourcing option. "That being said, outsourcing to China is growing and it shows significant promise," adds Casale.

The following are the results of the CIOZone Outsourcing Poll.

Question: Where is the best place to outsource?

1. India (25.2%)
2. China (23.4%)
3. United States (12.6%)
4. Ireland (8.1%)
5. Canada (7.2%)

 5.   Egypt (7.2%)

 7.   Eastern Europe (6.3%)

 7.   Philippines (6.3%)

 8.   Indonesia (1.8%)

 8.   Latin America (1.8%)

Comments (7)

	1. 05-05-2009 07:00
	I'd be curious to know why Casale evidently thinks Satyam had little or no lasting impact. Everone was calling this the Enron of India, but as such, one would have thought it wouldn't blow over quite so fast. Registered

Ronald Fink

	2. 05-05-2009 10:33
	India has a tendency to recover very quickly from devastating events such as the Satyam scandal and the recent terrorist attacks in Mumbai. I wonder if Satyam played a backstop role to correct the economy in India? Look forward to hearing more on this issue. Registered

Jay Rajani

	3. 05-05-2009 10:35
	Mr. Fink raises a valid question... If India has moved past it's Enron, what measures have they put in place to assure other nations such an event will not happen again? I, too, am surprised that China fell to India in the CIOZone poll. China, even with the language and cultural barriers, will certainly look to increase their ability to take in more of the service sector jobs. Registered

John Sane

	4. 05-05-2009 11:55
	Jay, why do you think India has a tendency to recover so quickly? Is it culturally built in? Out of necessity, ie get bogged down in it, get left behind? Registered

Matthew Quinn

	5. 05-05-2009 12:23
	While you can't be blind to past occurrence you have to look at present facts. India remains in the lead because it's difficult to move from one supplier to another in the outsourcing space. What is troubling is that while Satyam is used as the Enron poster child, I have yet to hear of wide spread inability to deliver (at least greater than is experience by other Tier 1 suppliers. Further, China does not have significantly greater cultural issues than others, yes language is a problem and IPR issues (while on the decline) continue be the hot buttons, they have a solid/extensive workforce, regional security is a non-issue and their commitment is growing. Yes, there is allot to be learned about market promotion and development. There again buyers have allot to learn about 'right' buying and global project management too. Registered

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	6. 05-05-2009 12:46
	Thanks for your insights Jerry. I'm also wondering how the current flu scare is affecting outsourcing. Have Latin American outsourcers been impacted or is it not really an issue? Registered

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	7. 05-05-2009 14:34
	@Matt Quinn: India recovers from scandals quickly because there is a culture of moving forward and allowing past events to stay in the past. The business and political arena is so filled with scandals that there is no choice but to move to the next one. Registered

Jay Rajani

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