Canada is coming in the preferences for a number of American based companies. The Canadian cities namely Vancouver and Toronto are getting popular for outsourcing work. But this does not mean that Canada will become next India for the American based software companies outsourcing work. Still, Canada is becoming an attractive option for many American software developers eyeing for their future outsourcing strategies.



According to a new report released on Tuesday by SD Forum and Luxoft, a Russia based outsourcing firm from the 200 plus U.S. based independent software developers that took part in the survey, 94 percent say that they are outsourcing project work, either domestically, offshore, or near shore, or in some combination of all three.

India is the leading offshore destination of various American based companies outsourcing, followed by Singapore, Russia, and China. Due to BPO's vital nature, US clients seek to have these done closer to home, or ?near shore?. Canada offers quite a near fit with its constancy, geographical proximity, and cultural similarities.

However, Canadian cities, including Vancouver and Toronto, win out over India for future outsourcing strategies by American independent software vendors, particularly among those that use a mix of offshore, domestic, and near shore work.

Companies with Indian roots stand to gain from this trend since it functions on a flawless worldwide delivery model customized to customers? risk preferences. Such a global outsourcing model can have work distributed between Canadian and Indian operations ? the design and project management in Canada, and second-tier jobs in India.