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Indias domination in the business process outsourcing BPO sector continues with six of its cities featuring among the top eight emerging global outsourcing cities. Bangalore, Chennai, Delhi National Capital Region, Hyderabad, Mumbai and Pune are the six Indian cities among the eight global outsourcing cities, says a study by CyberMedia Global Services and Tholons, a global investment advisory firm. Dublin Ireland and Makati City The Philippines are the two other cities. Indias representation in the top 50 Emerging Global Outsourcing cities has grown to four, from last years three, with the addition of Jaipur to the list at number 31.
The other Indian cities in the list include Kolkata at number six, Chandigarh at 12 and Coimbatore at 17, says the study.
Cebu City The Philippines, Shanghai and Beijing lead the list of top 50 Emerging Global Outsourcing cities.
Though Indias domination of the BPO sector continues, the Chinese are fast catching up. Six of its cities figured in the list of top 50 Emerging Global Outsourcing cities compared to Indias four, the study points out.
The six Chinese cities are Shanghai, Beijing, Shenzhen, Dalian, Guangzhou and Chengu.
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 tier1 Asian cities, outsourcing centers are being set up in many tier2 and tier3 cities, it added. The study has also short listed tierII 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 Chinas outsourcing industry is set to flourish further with a supportive government and favorable outsourcing conditions. CyberMedias 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 servicedelivery capabilities.
Commenting on the 2nd Global Services study Ed Nair, Editor, Global Services said, The concept of an individual location being a onestopshop 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 one thirteenth of Indias population, its BPO revenues are already half as large as Indias BPO revenues.
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