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The Top 8 Global Outsourcing Cities includes as many as six Indian cities led by Bangalore, Chennai, Delhi National Capital Region, Hyderabad, Mumbai and Pune. Dublin Ireland and Makati City The Philippines are the other two cities in the list, according to a study by Cyber Medias Global Services and investment advisory firm Tholons. 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 No 31.
The other three cities in the list include Kolkata at No 6, Chandigarh at No 12 and Coimbatore at No 17.
Cebu City The Philippines, Shanghai China and Beijing China lead the list of emerging global outsourcing cities.
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 Chinese cities are a part of the top 50 emerging cities for global outsourcing list, compared to Indias four.
These are Shanghai, Beijing, Shenzhen, Dalian, Guangzhou and Chengdu.
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.
As per CyberMedia publication Global Services, the top entries from Asia are Cebu City, Shanghai, Beijing, Ho Chi Minh City, Kolkata and Shenzhen.
The top ranking entries from Central and Eastern Europe include Krakow Poland, Prague Czech Republic, and Budapest Hungary.
To set up an outsourcing center the choice of the right city has become more important than the choice of the country, the study says.
Attributes of a city like available resources quality and type of work force, cost, available infrastructure, and its longterm potential in fulfilling demand for specific services determine its attractiveness as an outsourcing centre.
While Bangalore, Krakow, Makati City and Shanghai are the established centers for finance and accounting, Cebu City, Colombo and Pune are the emerging centers of excellence for this function.
Similarly Shanghai, Dublin and Bangalore are currently the leading centers for research and development and Beijng, Chennai and Prague have been identified as the new emerging centers for R&D services in 2008.
Interestingly, there is a tradeoff between cost benefit and complexity of services offered by a city. In many cases, an offshore location with lower costs, also processes less complex services and viceversa.
For instance, offshore cities such as St Petersburg, Shanghai, Bangalore, Makati City, Ho Chi Minh City and Delhi National Capital Region provide highend, complex functions but not necessarily at a lower cost.
Similarly, it is possible to get less complex work done at onshore locations such as San Antonio and Glasgow at lower price.
While the focus of the study was to identify the top 50 emerging cities, it also listed the top global outsourcing cities.
The Top 8 Global Outsourcing Cities includes a few new members , Chennai India, Hyderabad India, Makati City The Philippines and Pune India.
As expected, Indian cities dominate the list once again.
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