An InformationWeek story asks if Canada could "become the next India for American-based software companies outsourcing work."
The question is posed based on Canada's mention in a recent survey of some 200 independent U.S. software developers. Conducted by SD Forum and Russian outsourcing firm Luxoft, the survey found that, for the 94 percent of respondents that outsource project work, India was the leading offshore destination, followed by Singapore, Russia and China.
But Canada scored more strongly when the same companies were asked about their future outsourcing plans. It was an especially popular option for firms on the West Coast -- like, say, Microsoft, which caused a minor stir earlier this year with its decision to open a software development center in Vancouver, BC. Putting a political spin on it, the software giant cited the ability to "recruit and retain highly skilled people affected by immigration issues in the U.S." as one of the reasons it chose Canada.
Among Canada's benefits, according to survey respondents: proximity, similar culture, abundance of English speakers, security and perceived quality of work. The CEO of Luxoft Canada says, ""This clearly shows what roles other factors play in addition to cost in outsourcing."
Still, Canada will have to come a long way to rival India's popularity as an offshore destination. According to a spring 2006 study by Sand Hill and Persistent Systems, more than 83 percent of American ISVs send product development work to India, compared to just 5 percent that sent such work to Canada or China.