Companies outsource mainly to cut cost. There is an imbalanced supply and demand of IT talent in top IT countries like the United States and it is driving many corporations to rely on offshore outsourcing as the solution. This cost-effective and quality pool of IT talent from offshore outsourcing services provides a much better value in terms of flexibility and scalability.

With dozens of areas around the world that are trying to grab a slice of the outsourcing business. Iloilo City, Philippines is popularly considered a Hot Spot for Outsourcing Companies. Already identified by Philippine authorities as one of the next wave of IT outsourcing centers. The well-trained, English-speaking population makes the city an ideal option for companies looking for a cheap alternative for U.S. consumer support.

Other popular choices to outsource are:

Buenos Aires, Argentina
Population: 12.6 million
Ease of Doing Business Rank (Argentina): 113 (out of 181 countries)
Rigidity of Employment Index (Argentina): 35 (out of 100—the lower the figure, the more flexible the workforce)

Winnipeg, Canada
Population: 719,000
Ease of Doing Business Rank (Canada): 8
Rigidity of Employment Index (Canada): 4

Boise, Idaho
Population: 568,000
Ease of Doing Business Rank (U.S.): 3
Rigidity of Employment Index (U.S.): 0

Indianapolis, Ind.
Population: 797,000
Ease of Doing Business Rank (U.S.): 3
Rigidity of Employment Index (U.S.): 0

Belfast, United Kingdom
Population: 267,000
Ease of Doing Business Rank (U.K.): 6
Rigidity of Employment Index (U.K.): 14

Cairo, Egypt
Population: 18 million
Ease of Doing Business Rank (Egypt): 114
Rigidity of Employment Index (Egypt): 27

Cluj-Napoca, Romania
Population: 310,000
Ease of Doing Business Rank (Romania): 47
Rigidity of Employment Index (Romania): 62

Hangzhou, China
Population: 6.7 million
Ease of Doing Business Rank (China): 83
Rigidity of Employment Index (China): 27

Ahmedabad, India
Population: 5.8 million
Ease of Doing Business Rank (India): 122
Rigidity of Employment Index (India): 30

Iloilo City, Philippines
Population: 419,000
Ease of Doing Business Rank (Philippines): 140
Rigidity of Employment Index (Philippines): 35

With usual destinations of the IT sector becoming expensive than they used to be, Companies resort to these outsourcing places.

Source: Yahoo Finance