Dublin (Ireland) and Makati City (The Philippines) are the other two cities in the list, according to a study by CyberMedia’s Global Services and investment advisory firm Tholons.
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 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, Shanghai & Beijing tops list of global outsourcing cities
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 part of 50 global outsourcing list
Six Chinese cities are a part of the top 50 emerging cities for global outsourcing list, compared to India’s 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 tier-1 Asian cities, outsourcing centers are being set up in many tier-2 and tier-3 cities.
Choice of city important for setting up outsourcing centres
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).
Low cost main agenda for setting up outsourcing centres
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 long-term 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.
San Antonio & Glasgow provide high-end functions at low cost
Interestingly, there is a trade-off 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 vice-versa.
For instance, offshore cities such as St Petersburg, Shanghai, Bangalore, Makati City, Ho Chi Minh City and Delhi (National Capital Region) provide high-end, 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.