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A customer service representatives works at her desk at the offices of the Bank of New York Mellon in DeWitt. A study by The Hackett Group ranks Syracuse the top U.S. location for business service centers.
(Frank Ordonez | The Post-Standard, 2008)
Syracuse, N.Y. — Syracuse tops the list of U.S. cities that make attractive alternatives to India and other offshore locations for companies looking to consolidate their finance, information technology and other business services operations, according to a new study.
The Hackett Group, a business consulting company, ranks Syracuse No. 1 on its top 10 list of U.S. cities that make ideal locations for service centers.
It said it based its evaluation on economic considerations, with cost of labor and office space primary concerns, and workforce availability and quality secondary factors.
Syracuse scored high in the ranking because of an abundance of affordable office space and educated workforce.
Hacket said its previous research has found that, while offshoring has led to a dramatic decline in the number of corporate IT, finance, procurement and human resources jobs in the United States, the number of new business services jobs moving offshore has declined steadily over the past few years. It said it expects that trend to continue as companies reach the practical limits of the type of work that can be effectively "off-shored."
"Mid-sized metro areas and rural communities in the United States have become viable
choices for establishing service delivery centers, with advantages that include turnover
rates that are significantly lower than offshore; proximity to customers and headquarters;
cultural affinity; business knowledge; and reasonable real estate and infrastructure
costs," it said. "Also, the labor-cost difference between U.S. and prime offshore locations has been diminishing."
Syracuse has long been a popular location for business service centers. AXA Equitable Life Insurance Co. and Sutherland Global Services Inc. each employ approximately 900 people in service centers in downtown Syracuse. Bank of New York Mellon employs more than 600 people at service centers in downtown Syracuse and in the nearby suburb of DeWitt. Excellus Blue Cross Blue Shield employs more than 800 people in DeWitt.
"We do have a history of supporting businesses in that type of industry locally, and we have the available labor," said Karen Knapik-Scalzo, an economist in the Syracuse office of the state Department of Labor.
Customer service representative jobs in Central New York pay an average of $36,780 a year, with entry-level positions paying $22,670 and those requiring experience paying $43,830, according to an employer survey conducted by the department.
Here's the Hackett Group's top 10 list of U.S. cities for locating business service centers:
1. Syracuse, N.Y.
2. Jacksonville, Fla.
3. Tampa, Fla.
4. Lansing, Mich.
5. Grand Rapids, Mich.
6. Atlanta, Ga.
7. Allentown, Pa.
8. Green Bay, Wisc.
9. Richmond, Va.
10. Longmont, Colo.
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