World's top 8 outsourcing destinations

[R.A.W.]

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Bangalore, India

For the fourth consecutive year, India's Silicon Valley Bangalore bags the crown spot. Despite infrastructure still being a problem, Bangalore manages to bag the top position among the global outsourcing destinations.

According to the study, the presence of India's big three service providers -- Infosys, TCS and Wipro -- in the city continues to attract a chunk of global buyers.

The report says that the city has grown from low-end ITO and BPO work, such as coding and data-entry, to high-end ITO and BPO work such as embedded systems and voice-based technical support.

The city continues to attract numerous global players like HP’s subsidiary Global E-business Operations which provides finance and accounting solutions with a focus on HR, supply chain and business analytics.

The presence of a number of semiconductor companies and design and engineering firms and research facilities has helped the city emerge as a major technical hub for semiconductors.

The city also boasts of highest number of captives across the globe including Intel, Microsoft, Oracle, SAP, Cisco, Google, Yahoo, HP, Motorola, Siemens, Samsung among the ITO sector. BPO/KPO includes Citi, Reuters, HSBC, Goldman Sachs, Dell and JP Morgan. Rising attrition rate continues to be a major concern for the outsourcing industry in the city.


Delhi NCR, India
At no. 2 position is the national capital Delhi (NCR). Delhi scores high for its BPO capabilities, especially contact centers. The city also earns high marks for its fast growing educational setups.

Delhi (NCR), formed of three cities Delhi, Noida and Gurgaon, offer an ideal environment for business analytics, finance and accounting, software development, product development, engineering services and contact center services.

According to Nasscom (National Association of Software and Services Companies), software and services exports contributed $40 billion to Indian revenues in 2008. Of this the Delhi NCR contribution stood between 17 to 18%.

The city has presence of several big global IT giants such as IBM, Microsoft, Intel, Oracle, Accenture, HP, Amdocs, Capgemini, SAP, Siemens, Motorola and Dell as well as Indian players such as Infosys, TCS and Wipro.

However, security issues and political disturbances continue to be a major concern. Law and order and security for women are other problem areas. Other issues include rising real estate prices. The city also reels under huge traffic jams.

Delhi boasts of large contact-center industry, which is in competition with the Philippines. The city also attracts massive amount of investment into the development of infrastructure.


Mumbai, India

Ranking at no. 3 is the financial capital of India, Mumbai. The city is a center of excellence for its outsourcing capabilities in financial services, application development and management (ADM) and healthcare.

The emerging outsourcing services areas in Mumbai include engineering services, media and entertainment outsourcing, animation and game development. City's infrastructure, vast talent pool and friendly govt policies have helped it retain its position in the top 5. The city is a preferred choice of companies looking to outsource financial services, contract research and legal services. ADM is the core strength of the city and marketing and financial analytics are gaining ground.

Top service providers in the city include TCS, IBM, Infosys, Wipro, HCL, Mahindra Satyam, Accenture, CSC, ACS, Caliber Point, Firstsource, Convergys, Genpact, WNS Global Services, Minacs, Cognizant and EDS.

Estimated exports from Mumbai in software services (including IT and IT-enabled services) in 2008 were $3.0 billion to 3.6 billion. However, if Mumbai continues to grow at 63 percent (as last year), it is expected to touch $4.1 billion.

Being home to large number of financial institutions, the city faced severe impact of recession. According to the report, the captive centers in Mumbai suffered badly due to economic slowdown. The job market became sluggish. And many companies announced salary cuts and layoffs.

Manila NCR, Philippines

The central business district of Philippines Manila ranks at No 4 on the list. The city contributes 65 percent to the country’s economic growth. According to Business Processing Association of the Philippines (BPA/P), the country’s export revenue is $6 billion, which is growing at an annual rate of 36%.

The factors like easy availability of English-speaking manpower and strong cultural affinity to North America and its educational institutions makes Manila an attractive outsourcing destination. The city's sound infrastructure and robust telecommunication services further strengthens its position.

The city is strong in contact-center outsourcing services, distantly followed by smaller niche back-office processes, FAO, software development and engineering design, transcription services and animation and graphics design.

Manila houses outsourcing centers of HSBC, Citi, Convergys, JP Morgan, Accenture, PeopleSupport, IBM, Fujitsu, Sykes, Dell, Teletech, Teleperformance, Unisys and Trend Micro.

However, the city is turning congested due to rising presence of BPOs in the region. Almost 70 percent of the total number of BPO employees in the country work in Manila. The city is also witnessing rising attrition rates due to the presence of a large number of MNCs. It is also tackling with the problem of high-quality labour pool. Also, the inability to move toward more mature services from contact-centers and back office is a real concern.


Dublin, Ireland
Next on the list is the capital city of Ireland, Dublin at No 5. The city is considered as one of the best nearshore outsourcing destination for Western Europe as it offers them an advantage of same time zone.

What makes Dublin an attractive destination is its capabilities in high-end shared services. The city attracts major FDI from Western European countries. The city’s outsourcing capabilities include English contact support, IT-infrastructure management services, business analytics, multilingual contact support, F&A, product development, research & development, healthcare and legal processing services.

Companies like Accenture, IBM, Microsoft, Fujitsu, HP, Dell, Intel, Capgemini, Oracle and Citi have their centers in Dublin. Being the center of Ireland’s economic growth, the city has a high cost of living. In 2008, Dublin was listed as the fifth-richest city in the world and is now the world’s 16th most expensive city.

Among the deterrents is the city's high labour cost. The entry level salary cost in the city is $1,200 in ITO and $900 in BPO sectors. Dublin is facing increasing competition from other eastern European cities like Krakow, Warsaw, Prague and Budapest. Also, due to limited talent availability in the city, the fears of the industry hitting a saturation level too are high.

During the slowdown, the city saw many deals terminations and delay in projects. The entire economy in Ireland saw a downward trend in the year 2009 to 2010 although it has started picking up.


Chennai, India
At no 6 on the list is another Indian city, Chennai. The country's second-largest exporter of software, IT and related services, it gets scores high on competitive business environment, operating cost advantages, scalability, quality real estate, telecom connectivity, urban infrastructure, city governance and skilled professionals.

The city's cheap labour, infrastructure, geographical advantage, low-cost of living and vast pool of English-speaking manpower are its key strengths. The city also boasts of several reputed educational institutions such as IIT, Regional Engineering College, Anna University, Bharathiyar University and account for 51 percent of the total computer and engineering graduates in the country. With 45,000 professional, the state also has the largest number of IT professionals.

The city has center of excellence for product development, ADM, testing, engineering services, business analytics, and legal services. The major ITO providers in the city include TCS, Infosys, Wipro, Cognizant, HCL, Mahindra Satyam, IBM, Accenture, Polaris, L&T InfoTech, PerotSystem and Vertusa. Top BPO providers include Office Tiger (now part of RR Donnelley), TCS, 24X7 Customer, HCL BPO, KPMG and Wipro BPO.

Among the drawbacks, the city's hot and humid climate rates high.

Hyderabad, India

The capital of Andhra Pradesh, Hyderabad, ranks at no 7 on the list of top global outsourcing cities.

Popularly known as "Cyberabad," the city creates one of the largest number of engineers in the country. However, the labour cost in the city is higher than cities like Pune and Chennai. On educational front, the city is home to three central universities, two deemed universities, and six state universities. Moreover, Hyderabad also has the lowest cost of living and education among Indian cities.

The city regarded as an established outsourcing location for ADM, testing and healthcare outsourcing services, and is rapidly developing newer outsourcing capabilities such as product development, financial services and contact center.

Hyderabad offers IT and IT-enabled services, pharmaceuticals call centers, and other outsourcing processes. The top ITO service providers in the city are IBM, TCS, Wipro, Infosys, Mahindra Satyam, iGate and Accenture.

Companies such as Deloitte, 24X7 Customer, EDS, Mahindra Satyam BPO and Sitel have their BPO setups in the city. Many global players, including HSBC, Bank of America, Microsoft, AT&T, Deloitte and Novartis have their captive centers in Hyderabad. According to the report, the city needs to work hard on infrastructure.

Pune, India
India's educational hub Pune figures at 8th spot on the global list of outsourcing cities. With more than hundred educational institutions and nine universities, the city is called “The Oxford of the East.” The city claims to have the largest number of schools, colleges and universities in the world.

What makes Pune one of the most attractive outsourcing destinations is its favorable climate, quality of life, vast manpower pool and availability of tech skills. Since 2000, government's friendly policies have seen several big and small IT companies set up their base in Pune. Several IT parks too have come up, like Rajiv Gandhi IT Park, Magarpatta Cybercity, MIDC Software Technology Park at Talawade, Marisoft IT Park and Kumar Cerebrum IT Park at Kalyani Nagar, International Convention Centre (ICC) and Weikfield IT Park.

The city is known for its outsourcing capabilities in the fields of financial services, legal services, contact center (English), product development, application development and infrastructure management.

Accenture, Cognizant, CSC, Geometric, HCL, IBM, Infosys, TCS, Tech Mahindra and Wipro Zensar have there presence in the city. BPO service providers include Convergys, EDS, EXL and WNS.

Pune has a significant number of captive setups of global firms such as Amdocs, Citi, Microsoft, Oracle, Kanbay, Mimosa Systems, HSBC Software and Symantec. Despite the development, the city still lacks international air connectivity.

[CheykenJen]

Manila at No. 4 is not a bad place. There is still a lot of room for improvement and I believe that in the coming years Manila or the Philippines as a whole would climb to the top in the outsourcing industry.

[R.A.W.]

India is facing a tough competition from these countries we need to work hard to retain our position

[grey boy 2]

India is facing a tough competition from these countries we need to work hard to retain our position

Buddy; congrate. for your 1000 post, senior member.

[R.A.W.]

Buddy; congrate. for your 1000 post, senior member.

Thanks mate

[jwh]

Outsourcing is one way to increase the employment. But to solve the problem basically, the manufacturing industry is more essential.

[Rajkumar]

Outsourcing is one way to increase the employment. But to solve the problem basically, the manufacturing industry is more essential.

that is absolutely right. thats the second reason i am gonna be an entrepreneur.

[R.A.W.]

that is absolutely right. thats the second reason i am gonna be an entrepreneur.

Lets join hands and let the India grow


By the way what is the first

[Rajkumar]

Lets join hands and let the India grow


By the way what is the first

money off course. but i wanna do it in my field electromagnetics.

[davaoprojects]

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[henryfrd07]

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I have been working in BPO organization from last few months and really I'm enjoying my work. But I prefer non voice process than voice process.