Cebu City and Shanghai have significantly developed their respective outsourcing industries which have allowed these cities to join the Top 10 Emerged List, while the list of Top 10 Emerging Cities will set the industry outlook for the coming years
Top 10 Emerged Cities
This year’s list of Top Emerged Outsourcing Cities has expanded, identifying ten global delivery locations. Two new cities join the eight previously acclaimed outsourcing cities. Cebu City and Shanghai have significantly developed their respective outsourcing industries which have allowed these cities to join the Top 10 Emerged List.
While Bangalore retained first place for the fourth year running, setting an example through its high talent output, and established and expanding service delivery capabilities, Mumbai moved up to second place this year, with its huge labor pool consistently displaying enhanced service delivery in complex and high-value FAO services.
Delhi NCR moved down to third place this year, owing to rising real estate costs and infrastructure stress on Delhi City, and despite its established FAO sector.
Manila NCR stayed at fourth place as it encountered challenges in moving up the value chain towards KPO services, given its mature service delivery in voice Contact Support & FAO.
Chennai moved up to fifth place due to its access to the large technical talent pool from Southern India and its maturing service delivery capabilities.
Known as the IT hub of India, Hyderabad moved up to sixth place owing to its mature service delivery capability and large pool of engineering and technical graduates.
Despite its mature delivery capability in R&D and IT services, Dublin constantly faces high costs and limited scalable labor – the city slipped to seventh place this year.
Pune, considered as the educational hub producing quality labor pool in ESO and ADM remained at eighth place this year as it faces stiff competition from other emerged Indian cities.
Cebu City has been successful in further developing its outsourcing capabilities. An established English voice-based processes sector supported its ninth place rank. Shanghai has developed complex IT and R&D services, optimizing its labor pool, cost advantages, and transport linkages, rounding of the Top 10 list this year.
This year’s list of Top Emerged Outsourcing Cities has expanded, identifying ten global delivery locations. Two new cities join the eight previously acclaimed outsourcing cities. Cebu City and Shanghai have significantly developed their respective outsourcing industries which have allowed these cities to join the Top 10 Emerged List.
While Bangalore retained first place for the fourth year running, setting an example through its high talent output, and established and expanding service delivery capabilities, Mumbai moved up to second place this year, with its huge labor pool consistently displaying enhanced service delivery in complex and high-value FAO services.
Delhi NCR moved down to third place this year, owing to rising real estate costs and infrastructure stress on Delhi City, and despite its established FAO sector.
Manila NCR stayed at fourth place as it encountered challenges in moving up the value chain towards KPO services, given its mature service delivery in voice Contact Support & FAO.
Chennai moved up to fifth place due to its access to the large technical talent pool from Southern India and its maturing service delivery capabilities.
Known as the IT hub of India, Hyderabad moved up to sixth place owing to its mature service delivery capability and large pool of engineering and technical graduates.
Despite its mature delivery capability in R&D and IT services, Dublin constantly faces high costs and limited scalable labor – the city slipped to seventh place this year.
Pune, considered as the educational hub producing quality labor pool in ESO and ADM remained at eighth place this year as it faces stiff competition from other emerged Indian cities.
Cebu City has been successful in further developing its outsourcing capabilities. An established English voice-based processes sector supported its ninth place rank. Shanghai has developed complex IT and R&D services, optimizing its labor pool, cost advantages, and transport linkages, rounding of the Top 10 list this year.
Rank 2010 | Rank 2009 | City | Country |
1 | 1 | Bangalore | India |
2 | 3 | Mumbai | India |
3 | 2 | Delhi (NCR) | India |
4 | 4 | Manila (NCR) | Philippines |
5 | 6 | Chennai | India |
6 | 7 | Hyderabad | India |
7 | 5 | Dublin | Ireland |
8 | 8 | Pune | India |
9 | - | Cebu City | Philippines |
10 | - | Shanghai | China |
Top 10 Emerging Outsourcing Cities
Stiffer competition is arising from South America and MENA regions to capture a significant share of the global outsourcing market. Each city in the Emerging list has been positioning itself and their respective niche services and specific target markets - leading to more defined value propositions per city.
- The only Eastern European city, Krakow leads the Top 10 Emerging Outsourcing Cities List. The city, constantly moving up the ranks since 2008, has built expertise in delivering FAO services with improving service delivery maturity for ITO and HRO services. Large multinational companies have established their presence in the city, like Capgemini, Google, IBM and Microsoft.
- Beijing, second in the list, has its enormous scale and talented labor for ITO services as its primary strength. In fact, the ITO sector has already captured 80% of the total outsourcing revenues of the city. However, Beijing continually faces challenges improving its business climate as it remains affected by strict government regulations.
- Buenos Aires, the primary outsourcing city of Argentina, also moved one place higher in this year’s rankings. The city has been harnessing its capabilities in delivering multilingual Contact Support Services to key markets. This specialization contributes to the improving service delivery maturity of the city.
- A notable outsourcing city of the MENA region, Cairo moved to fourth place this year. The fusion of nearshore advantage to Europe and multilingual skills of the people, positions the city in delivering quality voice-based services to European and Arabic markets.
- Sao Paolo continues to move up the rankings, being the banner high-value ITO city of Brazil. With still an underutilized pool capable of fulfilling R&D and Engineering services, Sao Paolo is poised for better positioning in high-value services in the coming years.
- Vietnam’s Ho Chi Minh, an ITO-centric city, has significantly dropped three places due to scalability and employability of its labor pool and as service providers in the city have begun to experience scale-up issues.
- Leaping 3 places, Dalian is one of the impressive emerging outsourcing cities this year. The city experienced an estimated 30% increase in software and services outsourcing exports last year. Dalian has remained successful in targeting the Japanese and South Korean markets for ITO and KPO services.
- Shenzhen moved one rank lower this year due to lower annual graduate output coupled with challenges in creating conducive business environment for investors.
- Curitiba takes ninth place this year. The city government has embarked various initiatives like Curitiba Offshore Center to promote the city as a prime ITO hub in Brazil.
- Sri Lanka’s chief outsourcing city, Colombo, closes the Top 10 Emerging Cities List. A significant factor for its inclusion is the recognition of its capabilities for delivering FAO services, together with the improvement of the perceived business and political risk.
Rank 2010 | Rank 2009 | City | Country |
1 | 4 | Krakow | Poland |
2 | 3 | Beijing | China |
3 | 6 | Buenos Aires | Argentina |
4 | 7 | Cairo | Egypt |
5 | 8 | Sao Paolo | Brazil |
6 | 5 | Ho Chi Minh City | Vietnam |
7 | 12 | Dalian | China |
8 | 9 | Shenzhen | China |
9 | 11 | Curitiba | Brazil |
10 | 17 | Colombo | Sri Lanka |
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