Global competitiveness of Indian cities as outsourcing destination

GLOBAL COMPETITIVENESS OF INDIAN CITIES AS OUTSOURCING DESTNATIONS

Indian cities led by Delhi’s national capital region (NCR) have grabbed the top seven slots in a global ranking of competitiveness of cities as outsourcing destinations. Close on the heels of Delhi are Bangalore, Hyderabad and Mumbai, according to a study released by US-based consulting firm neoIT.

The other three Indian cities at the top of the list are Pune, Chennai and Kolkata. Ho Chi Minh City (Vietnam), Manila (Philippines) and Shanghai (China) are the three non Indian cities which figure among the top 10 off shoring destinations.

Beyond that piece of good news, there is a word of caution. According to the study, in the next three to four years, several cities in Eastern Europe and China could become major rivals to India as outsourcing destination. In fact, the study project that Warsaw (Poland) would be right at the top of the list by then, along with two Indian cities, Kolkata and Hyderabad.

Delhi, Mumbai and Bangalore could have fallen well behind by that time, with Mumbai and Bangalore likely to be not even in the top 15, while Delhi too could drop out of the top 10. India would still have three of the top five slots, with Chennai joining kolkata and Hyderabad in that category.

The choice of outsourcing cities is based on both generic and enterprise-specific factors. Generic factors are independent of the country from which work is off shored, with the entrepreneur off shoring his work mainly to benefit from cheap labor. The other generic determinants are availability of proper infrastructure and lower country risk.

It is these generic factors that have made Indian cities hot destinations for off shoring, it says availability of a fairly large and qualified pool of workers is imperative to the success of these Indian cities over the rest of the world. Infrastructure is available and India has proved to be politically stable, hence the risk factors have been lowered.

It can also be plausibly argued that these cities have gained from coming into business quite early and having matured by the time when off shoring emerged as a major business demand. Small companies usually do not want to be adventurous in venturing to new destinations; definitely these cities have an edge over rest of the world.

Another important reason for these cities being hot spots is the availability of middle and senior level management. Then, of course there is India’s huge advantage over many other destinations when it comes to English language skills – part of enterprise – specific factors.

Times are changing and the ‘one size fits all’ approach has lost its relevance. With off shoring emerging as a major business process and companies off shoring both core and value added process, enterprise specific factors are going to determine the choice of location. These include language compatibility, physical proximity, socio-economic affinity as well as availability of sector specific expertise. The traditional locations, it predicts will be already heated up and there is possible chance of a supply crunch in them.

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  • Smithadam220

    India’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the
    traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.

    India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.

    The availability of technically trained and skilled manpower in India is making companies across the world look at the country as a profitable base to shift their high-end support services.

    Advantages of Outsourcing to India include :

    • High-quality and cost-effective services
    • High-end technology and best-of-breed infrastructure
    • Skilled, talented and experienced professionals
    • Wide range of experience in providing outsourcing solutions
    • Wide range of services
    • Save on time, effort and infrastructure by outsourcing
    • Maximize revenue and minimize expenses
    • Quick turnaround time
    • Latest software and technologies

  • Smithadam220

    India has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.
    India is undoubtedly the most favored IT destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to IT companies in India. The answer is very simple- India is home to large and skilled human resources. India has inherent strengths, which have made it a major success as an outsourcing destination. India produces the largest number of graduates in the world. The name of India has become synonymous with that of IT industry hence the name IT India.

  • Smithadam220

    Trivandrum’s BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.

    Trivandrum has won its spurs as the world’s outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.
    Trivandrum is undoubtedly the most favored IT/BPO destination of the world. This raises the question why most of the big MNCs are interested in outsourcing their operations to BPOs in Trivandrum. The answer is very simple- Trivandrum is home to large and skilled human resources. Trivandrum has inherent strengths, which have made it a major success as an outsourcing destination. Trivandrum produces the largest number of graduates in the world. The name of Trivandrum has become synonymous with that of BPOs and IT industry hence the name BPO Trivandrum.

    Besides being technically sound, the work force is proficient in English and work at lower wages in comparison to other developed countries of the world. Trivandrum also has a distinct advantage of being in a different time zone that gives it flexibility in working hours. All these factors make the Trivandrum BPOs more efficient and cost effective. In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are looking to BPO Trivandrum.

    A subset of outsourcing, Business Process Outsourcing (BPO) involves contracting the operations and responsibilities through a third party service provider. From the last couple of years, the BPO industry has evolved as the most substantial sector in the Trivandrum market. Trivandrum has emerged as the most favored location for all Bpo services across the globe. This has accelerated the Trivandrum economy to the heights, progressively boosting the statistics depicting the growth in the years to come and it has been however forecasted that by 2020, more than 80% of the world of business process outsourcing services will be served by the Trivandrum companies. Marked as the best place to attain superior quality services globally, the BPO industry is strengthening its foundation in Trivandrum.