Leaving no doubt that India is still the global leader as far IT and outsourcing are concerned, a study jointly carried out Cyber Media’s Global Services magazine and investment advisory firm, Tholons has drawn up a list of ‘Top 50 emerging outsourcing cities’.
As per the list five out of top 10 destinations are situated in India. It puts Chennai at the helm of the list.
Among the top 10 cities, Hyderabad is ranked at the second position followed by Pune (third), Kolkata (fifth) and Chandigarh (ninth).
India is represented with six cities including Coimbatore (21st) while China has five cities. Other cities which were able to grab a position in the top ten list include Cebu (Phillipine with fourth position), Ho Chi Minh (Vietnam with sixth position), Colombo ( Sri Lanka with seventh position), Shanghai (eigth position) and Beijing (on tenth position).
“With the demand-supply gap widening, newer tier II cities will play a critical role in re-engineered globalisation models,†Tholons Chairman and CEO Avinash Vashistha said.
Chennai bagging the top spot can be attributed to low cost, developed infrastructure, skilled workers and low attritions.
“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.
Not only IT, Chennai is also an established location for automotive engineering services, product development and healthcare BPO. It also houses big names like Accenture, Cognizant, TCS, Infosys, IBM, Satyam and Sun Microsystems.
The report has particularly stated that infrastructure development has played a key role in attracting foreign investors in Hyderabad. The study also stated that commercial property rents are quite low in the city. Pune on the other hand, is home to several educational institutions, making it attractive for IT and BPO services companies like Aviva, Zensar and Cognizant. Also, the city has lower operating costs and low attrition rates, the report adds.
Meanwhile, in Kolkata, the BPO sector has witnessed an attrition rate of 15-20 percent, whereas the Indian industry average touches 30 percent.
Also, the cost of living is lower compared to Bangalore, Mumbai and Delhi. “Chandigarh is one of the best-planned cities of India. It has wide, well-maintained roads, and is well connected to the capital region of the country,†the report stated.
The cities were selected on different criteria including scale and quality of workforce, financial, infrastructure, risk environment and even the inclination towards identifying skill-sets and workforce-related metrics. Source: newindpress
