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Article

Title: Off the Outsourcing Path

Author: Staff Article Type: Product Analysis
Source: Red Herring, v2 n33 p44(3) Publication Date: Sep 5, 2005
  ISSN: 1080-076X
  Illustrations: Charts
URL of Publication: http://www.redherring.com

Dalian, China, Jerusalem, Israel, and Bucharest, Romania are three emerging regions using cultural proximity, language skills, and cost advantages to compete as outsourcers with hubs in India and China. Dalian cannot compete with Beijing, China, in many other industries , says a spokesman for HiSoft, a software development service provider. Dalian does have a valuable affinity with Japan, since Dalian is on a peninsula that projects out into the northern end of the Gulf of Bohai and is about a thousand miles from Tokyo, Japan. Sixty percent of Japan's outsourcing goes to China, says Liu Kiren of Shenyang-based Neusoft, the largest software outsourcing firm in China. StartUp Jerusalm (SUJ) is a non-profit organization that seeks to re-energize Jerusalem and create jobs in all communities by making investment in Jerusalem appealing. SUJ will build upon the success of IDT Global and make Jerusalem a world-class center for outsourcing. Eli Kazhdan, CEO of SUJ, says Jerusalems tens of thousands of people who speak foreign languages proficiently make the city unparalleled in its support for language diversity. The high education level of Jerusalem's population is very advantageous in dealing with customers. Bucharest has the new IRIDE Business Park, which now has as a client GECIS Global, the technology outsourcing joint venture of General Electric, General Atlantic Partners, and Oak Hill Capital. Bucharest offers highly skilled technical employees in a low-cost environment, with multilingual workers and a goodly supply of new computer science graduates each year.

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