6 Indian cities among top outsourcing destinations

India remains a hot destination for outsourcing. According to an industry study, of the top eight ‘global outsourcing cities’, six are from the country.

The list, compiled by CyberMedia’s Global Services magazine and US-based Tholons Advisory, is topped by Bangalore, followed by Chennai and Delhi-NCR.

Hyderabad, Mumbai and Pune are the other three Indian cities in the top-eight. Out of this, Chennai, Hyderabad, and Pune are new to the list.
 

TALK OF THE TOWN
Position	Cities	Country
1	Bangalore	India
2	Chennai	India
3	Delhi NCR	India
4	Dublin	Ireland
5	Hyderabad	India
6	Makati City	The Philippines
7	Mumbai	India
8	Pune	India
Source: Global Services October 2008

Ireland’s Dublin (at number four) and Makati City in the Philippines (sixth position) are the other two cities among ‘Top 8 Global Outsourcing Cities’.

Moreover, India’s representation in the 'Top 50 Emerging Global Outsourcing’ cities has grown to four from last year’s three with the addition of Jaipur. The other three cities in the list are Kolkata, Chandigarh and Coimbatore. Of the top 50 cities, 19 are from Asia and 13 from Central and Eastern Europe.

Incidentally, there is a trade-off between cost benefit and complexity of services offered by a city. For instance, offshore cities such as St Petersburg, Shanghai, Bangalore, Makati City, Ho Chi Minh City and Delhi-NCR provide high-end, complex functions but not necessarily at a lower cost.

Avinash Vashistha, CEO, Tholons, says: “Clients’ focus on identifying outsourcing locations has driven the emergence of ‘centres of excellence’. Rise of Manila National Capital Region — 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.”