NYT: Canada, the Closer Country for Outsourcing Work

[DeepModem Mom]

Canada, the Closer Country for Outsourcing Work
By IAN AUSTEN
Published: November 30, 2004


OTTAWA, Nov. 29 - Like many software outsourcing companies, Keane often sends work to its employees in India. But at the same time, Keane, which is based in Boston, is expanding its base of software developers in its original, and much closer, outsourcing location: Canada.

While the debate over software and call center outsourcing from the United States focuses mainly on India, the Philippines, Singapore and other distant points, its significant growth in Canada has attracted relatively little attention. Canada lags India in the number of people working in outsourcing businesses. But its stability, proximity and cultural similarity to the United States tend to attract higher-value, more sophisticated work....

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Canada is holding its own against India in high-end work. "We do not have the same volume of people as India," said Robert Scott, a partner at PricewaterhouseCoopers Canada, based in Toronto, and the co-author of a study on outsourcing. "But Canada is generally competing at the leading edge of technology where close interaction between business users and developers is critical."

The lack of cultural differences between the countries has helped Canada also draw the call center part of the business. Mark Best, a call center industry analyst at Datamonitor, forecasts that the Canadian call center industry will grow 7.9 percent a year over the next three years, with the United States segment expanding more than 12 percent annually....


http://www.nytimes.com/2004/11/30/business/worldbusiness/30outsource.html

[PurityOfEssence]

1. Yeah, well it's no news in the entertainment business

With provincial rebates and federal rebates, coupled with lower rates and the (previously) better exchange rate, Canada's been sucking massive amounts of live-action, CGI and post work out of this country for the better part of the last decade.

NAFTA schmafta; it's basically a fuck California mentality.

Mercifully, they don't have the talent pool to sustain all those who'd like to take advantage of it, but it's hurt deeply.

With increased transportation costs, decreased benefit from the exchange rate and the huge talent pool here in L.A., the tide is turning somewhat. Also, much as I dislike Herr Schickelgroper, he's making moves to counter the tax benefits and keep runaway production here.

Yes, this is the gagging brought on by exceedingly sour grapes. Canada cares about its people and takes care of them, while we just fuck everybody in sight and scrabble for the bottom. I must say, though, it IS a legitimate gripe against the spirit of the so-called "Free Trade" concept when one side actively engages in industry-targeted protectionism, while expecting "fairness" in return.

Meanwhile, with an economy that depends on consumer spending for 2/3rds of GNP--not to mention a big chunk of the tax base--we only slit our own throats by being penny-wise when it comes to labor.