IT Outsourcing in Chicago vs IT Outsourcing in New York: Which is better?
Table of contents
Quick Access
IT Outsourcing in Chicago vs IT Outsourcing in New York: Where Should You Hire a Provider?
Talent demand and market size
New York is a magnet for tech workers and for companies seeking specialized talent in finance, media, and digital commerce. In recent years, the city has attracted a significant volume of tech professionals, keeping competition high for senior profiles, especially in AI and data, as mentioned in this Wall Street Journal article.
Chicago, meanwhile, is a diverse hub combining financial sectors, logistics, healthcare, and commerce. The city shows growth in tech hiring and interest in teams working in cloud, analytics, and enterprise applications; several local reports indicate expansion and hiring plans for 2025. This translates into a solid talent supply without the same salary pressure as NYC.
Costs: salaries, operations, and economic advantages
If the goal is to optimize budget, IT outsourcing services related to local hiring in NYC tend to be more expensive: total compensation for engineers and data specialists is often above the national average. Median figures and salary ranges for developers in NYC are among the highest in the country.
Chicago offers an attractive combination: competitive tech salaries but, on average, lower than NYC, reducing operational costs without sacrificing quality.
Salary platforms show that total compensation in Chicago is substantial but typically more contained than in New York. This makes IT outsourcing in Chicago a better cost/value option for medium- and large-scale projects.
Access to partners, clients, and capital
NYC is a major hub for capital (venture capital, private equity) and for large companies in industries that invest heavily in technology: finance, adtech, media, and retail. If your product or service depends on a wide network of integrators, consultancies, and local potential clients, IT outsourcing in NYC can facilitate strategic connections and faster sales cycles.
Chicago has a robust corporate ecosystem (regional banks, insurance companies, logistics, and healthcare) and a community of consultancies and tech providers with strong capabilities in enterprise and integration projects. Access to niche partners and talent specialized in industrial solutions is an advantage when you need implementations oriented toward processes and operations.
Availability of outsourcing firms and provider quality
Both cities offer a broad supply of IT outsourcing firms and staff augmentation providers. In NYC you will find many boutique agencies and large consultancies focused on digital transformation, while Chicago offers companies with a focus on enterprise solutions, integration, and modernization.
Additionally, the nearshore market and providers working across multiple time zones allow local teams to be complemented with high-quality remote talent.
When selecting a firm, evaluate —beyond price— their industry experience, case studies, ability to scale teams, and project governance. A provider with proven expertise in AI, cybersecurity, and cloud will deliver more value in complex projects.
Technology trends and areas of specialization
Both Chicago and NYC are investing in key technology trends like AI, machine learning, cloud, and cybersecurity.
NY is pushing AI adoption heavily in media, finance, and commerce; Chicago shows strong demand for analytics applied to traditional finance, logistics, and healthcare.
For teams working with data models, low-latency systems, or intensive digital products, NYC may offer a higher concentration of hyper-specialized talent; for enterprise projects focused on stability and scalability, Chicago is equally strong and often more cost-efficient.
Practical recommendation: when to choose Chicago or NYC
- Choose IT outsourcing in NYC if:
- You need highly specialized talent and are willing to pay a premium for it.
- Your product requires fast access to capital, integrators, or clients in finance, media, or e-commerce.
- You want brand positioning in an extremely competitive and highly visible market.
- Choose IT outsourcing in Chicago if:
- You want to optimize costs without sacrificing strong talent in cloud, analytics, and enterprise development.
- Your priority is enterprise-scale projects in traditional sectors (regional finance, logistics, healthcare).
- You prefer a balance between talent availability and budget control.
How to choose the right provider in each city
- Review case studies and references in your industry.
- Evaluate the ability to scale (staff augmentation) and governance (SLAs, metrics).
- Request a small pilot or MVP before committing long-term.
- Ensure the provider has expertise in current trends (AI, cloud, cybersecurity).
Conclusion: a reliable option
Both markets —Chicago and NYC— have clear advantages: NYC offers greater concentration of premium talent and market connections; Chicago offers a balance between talent and cost.
If you are looking for a reliable provider that combines technical expertise, a robust team, and the ability to operate in digital transformation projects, Rootstack is an option to consider: we are a provider with proven experience in nearshore software development and staffing, AI and automation projects, and the ability to scale teams quickly and efficiently.
Contact us and we will help you align costs, speed, and quality according to your business needs.
We recommend you this video
Related blogs
How software outsourcing can reduce costs by up to 50%
IT outsourcing for data analytics and ML
