Indy as IT outsource center

February 26, 2009
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Information technology companies would do well to outsource business processes to Indianapolis, a new KPMG report says.

The accounting and consulting firm included only one other U.S. city, Boise, Idaho, on an international list of 31 places where companies are likely to get the best combination of talent and low costâ??and are largely undiscovered as potential hot spots.

Interestingly, the report says the Indianapolis area had 64,000 â??underemployedâ?? workers in 2007, nearly a fourth of them with IT skills.

Indianapolis can take advantage of its close proximity to Indiana and Purdue universities as well as Rose-Hulman Institute of Technology, Ivy Tech Community College and the University of Illinois, it says.

Indianapolis is centrally located and has Internet II, one of only eight major fiber optic cable spines in the nation. The area also boasts low taxes, good roads, plenty of power and no congestion to speak of, despite a noted lack of mass transit.

Quality of life is good but the crime rate is â??quite high.â?? Another downer: â??The city has a history of disruptions on account of flood and tornadoes.â??

Where to locate these kinds of jobs? Purdue has a new research park near the airport, the report suggests.

KPMG has spoken. What are your thoughts?
  • That is great to hear. Being in the IT, myself, I am looking forward to the next upswing of the economy with IT jobs in IN. Granted, I wonder out of the 25% who are in IT, I wonder what the break down would be. How many are in Networking? How many are into Development? How many are hardware or software? Out of the Software, how many are web based software and how many are platform based? I know that most people don't care, but if we had an idea, it would probably help to know what type of skill set our unemployed IT brotherin has.

    Norm, if you don't know the skill set, thats ok, I am just curious.
  • Sorry, but crime rate in Indy is too high.
  • Indianapolis' crime rate is much lower than Minneapolis' or Nashville's, and both of those cities are seen as prime business locations.
  • Random, I asked KPMG but didn't get an immediate answer. Sorry.
  • Indianapolis has always been noted, but not featured as an ideal city for customer facing outsourced capabilities. We should recognize that the flat world can be an advantage to this side of the Pacific. Off-shore outsourcing has demonstrated economic advantages however, for call centers talking to Americans in B2B and B2C Indianapolis should step up to this economic development gem. We are the crossroads of bandwidth as well as transportation. Good job on picking up on this Norm. I would like to see more copy on this topic.
  • Disruptions by floods and tornados? Come on, how often has Indy had disruptions by floods and tornados? Unless they locate in Frog Hollow or in a westside trailer park, there is not much adverse affect. Not like say the chance of getting your power knocked out for a month in a ice storm in Kentucky or having a hurricane every couple of years.

    As far as crime, our rate is much lower than many communities our size. Makes you wonder what stats they looked at.
  • Norm- I really enjoyed reading your Blog on Indy as an IT outsource center. I agree with the assessment by KPMG, and I woudl like to read their report in detail. How can I get a copy?
  • Here's a link to the KPMG report:
  • Thanks, Tim.
  • I agree that Indy is an untapped resource for outsourcing and would love to see it happen.

    But.....good roads? Where did that come from?
  • I disagree with that report completely.

    When it comes to I.T. - Indianapolis is it's own worst enemy. People here want way too much money to do what hundreds of thousands of other people around the country can already do - for less. Instead of settling for less, I.T. companies here watch outside business walk away and pursue lower bids. To top this off, the businesses that go elsewhere get better quality work when all is said and done.

    With Silicon Valley prices and the a fraction of the talent, what company with a good tech officer would be dumb enough to outsource here?

    This city is full of average joes and very few skilled professionals.

    A few other obvious issues that plague this state from being on the tech radar are: bogus and random blue laws, poor work ethic, the fact we have a winter probably deters a lot of top talent, and the fact that most tech firms here don't last but a couple years at most.
  • Norm: Thanks for highlighting this great news - we've been competing and winning on a national and global stage for services out of our Indianapolis facility for two years - I would welcome input from you and others in this community about how we get the word out in a much larger, more concentrated way. Interestingly, I talked to someone in Europe the other day who is looking to put their central global instance of software in the US because they've done research and found that in their words, the US is the center of the World when it comes to the Internet. Since we're the middle of the US, it makes sense that we could attract national and global companies to Indianapolis. Any thoughts on how to raise our profile using this as a stepping stone?
  • interesting
    hello if you want to know more about physics you should go to nothing I hope you like it.

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