Six Indian cities top eight global outsourcing destinations list

23 October 2009 No Comment

Outsourcing

Top 50 Emerging Outsourcing destinations survey by Global Services-Tholons 6 Indian cities-Bangalore, Delhi NCR, Mumbai, Chennai, Hyderabad, Pune–among the 8 top global outsourcing destinations India, Philippines, Ireland, China and Brazil among Top 5 outsourcing nations Canada, Russia, Mexico, Vietnam, Poland among Top 5 emerging nations New Delhi / Bangalore October 21, 2009.

Six Indian cities are among the top eight global outsourcing centres, according to the study is jointly done by Global Services from CyberMedia and Tholons, a services globalization advisory firm.

Study says top 8 Global Outsourcing Cities are – Bangalore, Delhi NCR, Mumbai, Chennai, Hyderabad, Pune, besides Philippines’ Manila NCR and Ireland’s Dublin city form the top eight global outsourcing cities. This has been revealed in the 4th Global Services-Tholons Top 50 emerging outsourcing destinations survey.

The Next 10 Outsourcing Destinations considered to be ‘Top 10 Aspirants’ from a total of 68 destinations is dominated by China’s Shanghai, Beijing and Shenzhen, Vietnam’s Ho Chi Minh City and Hanoi, Poland’s Krakow, Argentina’s Buenos Aires, Egypt’s Cairo and Brazil’s Sao Paulo.

Seven Chinese cities–Shanghai, Beijing, Shenzhen, Dalian, Guangzhou, Chengdu and Tianjin are part of the top emerging cities for global outsourcing list, compared to six Indian cities Chandigarh, Kolkata, Coimbatore, Jaipur, Bhubaneswar, Thiruvananthapuram—make it to the list of next 60 outsourcing destinations.

Global Services Editor Ed Nair said, “With global outsourcing activity growing every year, the ‘emerging’ destinations are vying for a piece of the action. Though India and Philippines were the ones to occupy the pole positions first, many other countries are innovating to find a niche for themselves. The dynamics between these destinations is ultimately determined by a host of factors, which forms the basis of this study. Also, in many ways, this study is a study in globalization at its most granular level.”

India continues to top the list with revenues of $40 billion in IT-BPO export services in 2008. Indian IT-BPO export services posted 35% year on year growth rates in the last five years. The Philippines increased outsourcing revenues by 25% from $4.8 billion in 2007 to $6 billion in 2008 while increasing industry employment by 33% to an estimated 400,000 employees.

Interestingly India’s FDI inflows posted the largest increase globally at 46% in 2008 — from $25 billion to $46 billion even as global FDI flows decreased from $1.9 trillion to $1.7 trillion and several developing economies struggled to acquire investments from client nations.

Avinash Vashistha, CEO of Tholons says, “For a CIO today, finding a Center of Excellence is more than just lower cost. It must consider location, risk mitigation for business, cultural affinity and scalability of the skilled workforce.”

“The service providers need to think through their offerings so as to differentiate as the competitive advantage is rapidly vanishing due to cut throat competition and market saturation,” adds Vashishtha.

Compared to the previous year’s rankings, this year’s study reveals minimal shifts in rankings because of the overall slowdown in the pace of outsourcing activity in the face of global recession.

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