Canada could fast become a BPO destination to the U.S

Canada could fast emerge as business process outsourcing destination and a serious contender in ITES outsourcing on the back of negligible language barriers, closer boundaries, and a weak currency according European research firm Ovum.

Ovum said in a report. That Canada has a tremendous potential to become one of the top locations for technology outsourcing, a hub for R&D and a great cultural match with U.S. The crunch benefit is the Canadian dollar that has consistently traded below the US dollar for over 20 years and due to Canada's near dependency on US related trade. And that has resulted in Canada been seen as a great location for business process outsourcing by the U.S. And the salary expectations are modest than in U.S. though higher than in India.

Though to date, much of Canadian outsourcing activity has surrounded data center and 'sunsetting' activities, recently there has been more and more activity around software development and an attempt to move up the food chain into BPO, it said.

Ovum said, “Canada's selling points are high educational and IT standards equal to if not better than those of India, minimum business culture differences with US and negligible language barriers. These along with other factors make Canada a hot contender in the race to become a hub for business process outsourcing.