India is top global outsourcing destination

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India is top global outsourcing destination

CyberMedia’s ‘Global Services’ Study finds Six Indian Cities among the top 8 global outsourcing cities; Chinese cities dominate list of emerging cities for global outsourcing

Monday, October 06, 2008

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NEW DELHI, INDIA: The Top 8 Global Outsourcing Cities in the world includes as many as six Indian cities led by Bangalore, says a study by CyberMedia's publication 'Global Services' - the media platform for global IT outsourcing and BPO industry, and Tholons - a global investment advisory firm.

The other Indian cities are Chennai, Delhi National Capital Region, Hyderabad, Mumbai and Pune. Dublin (Ireland) and Makati City (The Philippines) are the other two cities in the list.

India's representation in the top 50 Emerging Global Outsourcing cities has grown to four, from last year' three, with the addition of Jaipur to the list at No 31, the study said. The other three cities in the list include Kolkata at sixth position, Chandigarh at No 12 and Coimbatore at No 17.

Chinese cities dominate this list with six cities. Cebu City (Philippines), Shanghai (China) and Beijing (China) lead the list of emerging global outsourcing cities. The other Chinese cities are Shenzhen, Dalian, Guangzhou and Chengdu.

While the 'Top 50 Emerging Global Outsourcing Cities' 2008 list has nine entrants - Quezon City, Toronto, Rio de Janeiro, Mexico City, Jaipur, Singapore City, Chengdu, Guadalajara and Mandaluyong City - six cities from 2007 have not made it to the list this year, the study said. These cities are Perth (Australia), Baguio City (The Philippines), Leeds (U.K.), Birmingham, (U.S.), Oklahoma City, (U.S.), Juarez (Mexico). Of the top 50 cities, 19 are from Asia and 13 from Central and Eastern Europe.

Besides tier-1 Asian cities, outsourcing centers are being set up in many tier-2 and tier-3 cities, it added. The study has also short listed tier-II cities around the world, which have the potential of moving into the top 50 list. These include Nizhniy Novgorod (Russia) Cork, Republic of Ireland, Tianjin (China), Bacolod City (The Philippines) and Amman (Jordan).

While pointing out the Chinese dominance in the outsourcing segment, the study said China's outsourcing industry is set to flourish further with a supportive government and favorable outsourcing conditions. CyberMedia's 'Global Services' from the USA, the first Indian magazine title to be published from outside the country for a global audience, report says increasing competition in the global outsourcing will make the cities more focused in identifying appropriate service lines and in developing their service-delivery capabilities.

Commenting on the 2nd Global Services study Ed Nair, Editor, Global Services said, "The concept of an individual location being a 'one-stop-shop' has given way to 'smart, multi, selective sourcing' models, wherein selected processes are outsourced only to the most appropriate destination."

Avinash Vashistha, CEO, Tholons, said "Clients' focus on identifying outsourcing locations has driven the emergence of 'Centers of Excellence.' Rise of Manila National Capital Region (NCR) – an agglomeration of 16 adjacent cities - is an example. Though less than 1/13th of India's population, its BPO revenues are already half as large as India's BPO revenues."

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