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Wednesday, October 03, 2007

5 Indian cities among top global outsourcing / BPO hubs

Reflecting the immense potential of India's information technology and outsourcing prowess, five Indian cities are among the top 10 global emerging outsourcing destinations with Chennai topping the list.

Among the top 10 cities, Hyderabad is ranked at the second position followed by Pune (3rd), Kolkata (5th) and Chandigarh (9th).

The study jointly carried out by Cyber Media's Global Services magazine and investment advisory firm Tholons has drawn up a list of 'Top 50 Emerging Outsourcing Cities' and India is represented with six cities including Coimbatore (21st) while China has five cities.

The Philippines city of Cebu (4th), Vietnamese city of Ho Chi Minh (6th), Colombo (7th), Shanghai (8th) and Beijing (10th) have also found a place in the top-10 chart.

"With the demand-supply gap widening, newer Tier II cities will play a critical role in re-engineered globalisation models," said Tholons Chairman and CEO Avinash Vashistha.

Low cost, developed infrastructure, skilled workers and low attritions are the main reasons for Chennai bagging the top spot.

"Chennai is expected to house more than 73,000 workers of the top three Indian IT companies (TCS, Infosys and Wipro) by 2010," the report said.

In addition, it point out that Chennai is an established location for automotive engineering services, product development and health care BPO. It also houses big names like Accenture, Cognizant, TCS, Infosys, IBM, Satyam and Sun Microsystems.

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India remains the most favoured outsourcing / BPO destination

India remains the most favoured outsourcing destination, according to CyberMedia's Global Services survey on Emerging Outsourcing Destinations in 2007.

Even as fears that the rupee appreciation and rising wage costs would blunt its edge, India still boasts of the largest number of cities (6) which figure among the top 50 emerging cities, followed by China (5), Brazil (3), the Philippines (3) and USA (3), among others.

The study identified Asia and East Europe as the favoured destinations for information technology (IT) and business process outsourcing (BPO), as 19 Asian and 12 East and Central European nations featured in the list of the top 50 emerging outsourcing cities globally. Bangalore, New Delhi, National Capital Region (NCR), Manila, Mumbai and Dublin dominated as the top five cities that have established themselves as prime outsourcing cities by servicing the global corporate world for over a decade, the study said.

The top three emerging outsourcing cities world-wide from India are Chennai, Hyderabad and Pune. While Kolkata ranked fifth, followed by Kolkata in the ninth spot.