Top 50 Emerging Global Outsourcing Cities - Tholons

Special ReportThe gateway to the global sourcing of IT and BPO servicesTop Established and EmergingGlobal Outsourcing Cities by FunctionsCompanies are always looking at opportunities to offshorenew areas. This leads to growth in overall scopeof services that get offshored. This is why, last year we hadintroduced two new sub categories including emerging andestablished cities for Contact Centers (English and Multilingual).Similarly, in the 2009 study we have introduced threenew sub categories. These new functions include:• Animation / Game Development: The global game developmentmarket, which estimated at $10 billion in 2007,is always under pressure to improve time-to-market fornew games, increase cost savings and remove concernssuch as piracy of popular games. Outsourcing of gamedevelopment activities helps mitigating all of these concernsof the customers segment.Countries such as China, Russia and Brazil are alwaysconsidered as leaders in this space. There are manyother countries such as Ukraine, Vietnam, India, ThePhilippines, Korea and Romania that are strengtheningtheir skills in this area. This is why, cities such asShanghai, Beijing, Moscow and São Paulo have formedthe list of emerged outsourcing locations for the gamedevelopmentservices. And the list of emerging outsourcinglist of this sub category has cities such as Manila(NCR), Buenos Aires, Ho Chi Minh, Bangalore andThiruvananthapuram. The growing number of mobileusers across the globe has also encouraged outsourcingof animation and game-development services inthe recent past.• Health-care Services: Cities including Hyderabad, Bangalore,Warsaw, Prague, St. Petersburg, Mumbai arenamed as the top cities for the health-care services space.Top established global outsourcing cities by functionssThe list of emerging outsourcing locations in this area hasBucharest, Bucharest and Shanghai.• Infrastructure-management Services: As IT infrastructureoutsourcing is almost a five year-old industry, itmade sense to us to have this sub category this year. Infact the demand of remote infrastructure managementoutsourcing is expected to touch $5.9 billion in 2009 and$8.6 billion in 2010, according to the Everest ResearchInstitute. Believing that there is clearly an opportunity inthe current economy to reduce costs in IT-infrastructureoutsourcing space, providers offer multiple solutions tohelp customers reduce IT budgets, such as virtualizingcustomers’ server environments or consolidating theirdata centers into pooled environments, network services,storage, desk operations, midrange, security, mainframeand desktop support.In 2009, the list of established global outsourcing citiesfor infrastructure-management services has three topglobal cities Bangalore, Delhi NCR and Dublin and twocities, including Toronto and Kuala Lumpur from the Top50 Emerging Global Outsourcing Cities category.We have not ranked the cities mentioned in these subcategories. But we have identified three to six establishedand emerged cities by outsourcing functions, including ApplicationDevelopment and Management (ADM), Animation/ Game Development, Business Analytics, Contact Center(English), Contact Center (Multilingual), Engineering Services,Finance and Accounting (F&A), Health-care Services,HR, Infrastructure Management Services, Legal Services,Product Development, Research and Development (R&D)and Testing.FunctionsADMAnimation / Game DevelopmentBusiness AnalyticsContact Center (English)Contact Center (Multilingual)Engineering ServicesF&AHealth-care ServicesHRInfrastructure Management ServicesLegal ServicesProduct DevelopmentR&DTestingSource: Global Services and TholonsEstablished CitiesBangalore, Mumbai, Hyderabad, Chennai, DublinShanghai, Beijing, Moscow, São PauloDelhi NCR, Mumbai, Bangalore, Chennai, Kraków, TorontoDelhi NCR, Manila NCR, Dublin, Mumbai, Bangalore, TorontoMexico City, Cairo, Kraków, Buenos Aires, Dalian, BucharestBangalore, Chennai, Pune, St. Petersburg, GuangzhouMumbai, Bangalore, Manila NCR, Kraków, Shanghai, DublinHyderabad, Bangalore, Warsaw, Prague, St. Petersburg, MumbaiPrague, Bucharest, Bangalore, Makati City, BudapestBangalore, Dublin, Kuala Lumpur, Delhi NCR, TorontoManila NCR, Mumbai, ChennaiBangalore, Moscow, Chennai, Shanghai, Ho Chi MinhSt. Petersburg, Bangalore, Moscow, Shanghai, DublinBangalore, Chennai, Hyderabad, Ho Chi Minh, Toronto, ShanghaiNew Entrant(s) / Category32 GlobalServices www. globalservicesmedia.com October 2009