Destination Compendium 2010

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EDitor’s NotE

The Business
of Places
B usiness is all about ideas, money, and people. And places. This is
specifically true in the global services industry.
As we end this decade that marked the maturing of global sourcing
of services, the role of outsourcing locations has really played out very
well for all of us to see. For one, global sourcing was always about the
Ed Nair ‘place’. In the beginning, it meant India and now it means much more.
The journey from thereon has been fascinating.
Editor Remarkably, the journey also coincided with many other con-
ed@cybermedia.co.in comitant trends like rapid globalization, liberalization of economies,
growth in emerging economies, and technology refresh cycles. These
trends spurred the growth of global locations from where services
IT and BPO are could be delivered.
both global business The other point is that services in the form of IT and BPO are both
global business opportunities and tools for economic development for
opportunities and countries. The breadth of economic impact of pursuing global services
tools for economic is wide: it includes increase in FDI, growth in exports, increase in
development for domestic employment, rise in purchasing power, infrastructure devel-
opment, and overall GDP growth. Every country including India is
countries. This year’s witness to these effects.
research and ranking The Global Services Destinations Compendium is an attempt to
feature 100 cities bring together the myriad dynamics of outsourcing locations in one
place— complete with research, data, profiles, and expert opinions. At
from 49 countries. the most granular level, we look at cities and how they compare with
each other. More importantly, we look at how upwardly dynamic the
cities are compared to previous years. The research and ranking from
Tholons feature 100 cities from 49 countries. It is indicative of the
phenomenal spread of the global services business. GS

6 GS Destinations Compendium 2010 www.globalservicesmedia.com

A T R U E P U B L I C P R I V AT E PA R T N E R S H I P

W o r l d ’s # 9 Fa vo ra b l e
Outsourcing Destination
“A.T. Kearney Report 2009”

Reliable Infrastructure

Educated Technical Human Resources

Your Gateway to the Middle East

Fast Growing Economy

coNteNtS

11 49
ExPERT SPEAk
The Top 100 CiTies
� Choosing the Right
by Avinash Vashistha &Manuel Ravago, Tholons
The list of Top 100 Outsourcing Cities will set the outlook for the Off-Shoring Destination 50
industry in coming years. by Atul Vashistha, Founder & Chairman, Neo Advisory
� Compete or Cooperate? Bridging the Nearshore-
Offshore Divide 53
by Anupam Govil, Founder and CEO, Global Equations
� Rise of IT-BPO Outsourcing Frontiers Regional
Analysis 56
by Viral Thakker and Nishant Mathur, KPMG
Advisory Services, India
� Latin America: The Next Sourcing Frontier or an
Afterthought? 59
by Esteban Herrera, Senior Vice President, HfS Research
� Africa: The emerging frontier for services
21 JORDAN offshoring 63
COUNTRy IN by H.Karthik and Nikhil Rajpal, Everest Group
FOCUS: JORDAN � Location Selection Best Practices 65
by Jehil Thakkar and Shailesh Narwaiye, KPMG
27 Advisory Services, India

REGIONAL DyNAMICS � Global Sourcing for FAO: Strong, Successful and
by Sruthi Ramakrishnan Growing 68
by Stan Lepeak, Managing Director, EquaTerra Global
� Location Assessment: Perception and Research
Reality for Global Businesses 28
� Why Latin America is Still a BUy 71
� Europe: Showcasing the by Mario Tucci, Senior Global Business Consultant
Challenges and Opportunities 32 � Africa- The Next Outsourcing Frontier 72
� Perspectives and by Dr. P.K.Mukherji, President & Managing Partner,
Potential of Asia’s Avasant Asia
Hotspots 36 � Latin America Emerges as a key Outsourcing
� Middle East & Africa: Destination for 2011 74
Leveraging Africa & by Don Jones, Partner, Technology & Life Sciences
Middle East 41 Practice, BDO USA
� Latin America: The � Africa as an Outsourcing Destination 76
Enduring Promise of by Pumela Salela, BPO/ITeS expert Consultant, World
Bank
Latin America 44
� Offshoring in the Latin American Region 82
by Pradeep Udhas, Executive Director, IT/ITeS Sector,
KPMG


� India’s Global Expansion: Eyeing Latin
America 83
by Sumeet Chugani, Associate Attorney, Diaz Reus & Targ
� Legatum Prosperity Index 84

87 � Dalian 104
� Guangzhou 106
� Santiago 128
� Shenzhen 130
CITy PROFILES
� Hanoi 107 � Singapore 132
� Beijing 88 � Ho Chi Minh 109 � St. Petersburg 133
� Belfast 90 � Johannesburg 111 � Toronto 134
� Brno 91 � kolkata 113 � Warsaw 136
� Budapest 92 � krakow 115 � Ahmedabad,
� Buenos Aires 96 � kuala Lumpur 117 Bangkok, Bhubaneswar, Brasília 137
� Cairo 98 � Mexico City 119 � Bucharest, Cape Town, Dubai, Glasgow City 138
� Chandigarh 98 � Prague 120 � Guadalajara, Istanbul, Jakarta, kyiv 139
� Coimbatore 100 � Rio de Janeiro 122 � Montevideo, Moscow, Mysore, Nizhniy
� Colombo 101 Novgorod 140
� San José 124
� Curitiba 103 � Penang, Perth, Seoul, Taipei 141
� Sao Paolo 126

Destinations
Compendium 2011
One Stop Resource On Global
Outsourcing Destinations

RELEASING NOVEMBER 2011
Inviting countries, cities, associations
to take part in this initiative

For more details, write to
satishg@cybermedia.co.in


� Ranking fluctuation 12
� Methodology and Scope of Study 15
by
� Point of Scale Resistance 15
Avinash Vashistha
� The top 100 Cities 16 Chairman and CEo, Tholons
� top 10 Emerged Cities 18
Manuel Ravago
� top 10 Emerging Cities 19 Research Director, Tholons

the top 100 cities

Ranking Fluctuations
the 2010 List of top 100 outsourcing Cities is a deliberate attempt to
encapsulate trends in the new era of services globalization.

Boon or Bane? likewise provides insight to the future potential of locations
Change has been the best descriptive word for the out- in addressing emerging trends and demands in services
sourcing industry in 2009, and this year, Tholons has globalization.
encompassed the world’s Top 100 Outsourcing cities -
twice the number of previous Lists. The expansion of the Location Assessment Framework
list has created an avenue for a more concise understand- These recent events in the global economy certainly high-
ing of industry movements – across 49 countries from 10 lighted the importance of more accurately assessing a loca-
defined regions. tion and the corresponding outsourced services that can be
Industry experts noted that the outsourcing activities potentially delivered. Given this, the Location Assessment
from 2009 to this year have become sluggish. Countries Framework has been applied in generating this report. The
tried their best to prove resiliency in the crisis and opted Framework covers six broad categories with fifteen subcat-
for strategies that could mitigate the effects. Indeed, some egories, with each category and subcategory having their
of the countries that had been resilient experienced smaller own respective weight. These weights are then utilized to
GDP growth, below expected growth targets; on the other generate a corresponding ‘City Score.’ These categories are
hand, countries which were greatly affected by the global “Scale and Quality of Workforce”, “Business Catalyst”,
recession posted negative growth, which often deterred “Cost”, “Infrastructure”, “Risk Profile” and “Quality of
their development as service delivery locations. Life”.
Likewise, the repercussions of the global economic The parameters above are the essential components in
crisis postponed many large outsourcing deals across geog- differentiating cities from each other. Consequently, the
raphies, while forcing service buyers and providers alike to parameters serve as guide in determining the capabilities
stretch operational budgets. The mantra of ‘doing more for of each city to deliver services in the wider spectrum of the
less’ has never been more relevant to the service providers outsourcing industry. Aside from presenting the inherent
as it was this past year. The effects of the downturn also strengths, the parameters are also an effective base for iden-
spurred apprehension among clients in renewing outsourc- tifying the inhibitors or areas for improvement which may
ing contracts. This cautionary stance was felt by most if undermine the development of the industry in the loca-
not all horizontal and vertical segments of the industry. tion. The framework also reveals additional factors which
On a positive note, many have viewed these challenges may spur a location’s service delivery maturity.
as opportunities, treating the economic downturn simply The combination of these parameters results in a specif-
as a transitionary (or even evolutionary) phase for the ic correlation of the cities to their respective service niche.
industry. There is now a greater call for delivering complex For example, considerations in the workforce extend from
services than maintaining cost advantages, which leads to scalability to employability of workforce. Cities with an
a more widespread transformation of outsourcing models abundance of Spanish-proficient speakers will have a
to fit the requirements of an ever-changing buyer market. greater value proposition for catering voice-based BPO
Further, there is a stronger focus on business transforma- services to the US Hispanic market. Likewise, cities with
tions among service providers, which will foster enhanced high percentage of engineering graduates may be better
customer satisfaction. In the end, stronger buyer-provider equipped to venture into the ESO space.
relationship will be seen. Cost still plays a significant factor in locating. Coupled
The 2010 List of Top 100 Outsourcing Cities is a with the capacity to deliver specialized services, low cost
deliberate attempt to encapsulate such trends in this new cities can have a definitive advantage in attracting inves-
era of services globalization. Thus, this year’s List is not tors or service providers. Along with this, developed and
only a reflection of the current competitiveness (and stat- supportive ITeS infrastructure is needed in order to fulfill
ure) of cities in the global outsourcing landscape, the List the requirements of the industry. In order to support the


the top 100 cities

Scale & Quality Cost Businee Catalyst Infrastructure Risk Profile Quality of Life

• Labor Pool • Cost of Operations • Government • Connectivity • Social infrastructure • Commerical Risk
• Skills Availability • Cost of Training Benfits/Incentives • Bandwidth Availability (Hospitals, Educations • Political Risk
• Graduate Output • Cost of Real Estate • Competitive • Transportation Institutions, etc.) • Natural Risk
• Complexity • cost of Bandwidth Landscape • Non-work Culture • Social Risk
• Cost of Living • Untapped Labor Pool • Availability of
• Cost of other • Employement Profile Recreation/Leisure
Infrastucture facilities

Skills and Savings Business operational Business non-Business
Scalability Environment Environment Risk Environment

growing ITeS industry, kuala Lumpur for example, has improvement in perceived risk in the country by the cli-
shown concerted effort in improving infrastructure, which ent nations. The city of kuala Lumpur moves up 4 places
contributes to its overall attractiveness as an outsourcing highlighting the city’s robust and continuously developing
destination. infrastructure and maturity of service delivery capabilities
Factors such as Risk Profile and the Quality of Life in for high-value ITO and FAO.
the cities are also included to assess the viability of the On the other hand, the major drops were seen in Tier
location. Political violence and social unrest may greatly II locations: Nizhny Novgorod, Thiruvananthapuram,
affect the conduciveness of business operations in the city. Cordoba, Chandigarh, Belfast, Accra, and Jaipur. One
One recent example is the increasing crime rate in Mexico, possible reason is the inability of Tier II locations to
which has definitively affected the decisions of service pro- improve on service delivery maturity, in relation to its Tier
viders in locating and expanding in the country. I competitors in their respective countries. The two-old
The Framework also considers various regional dynam- factors can be attributed to this: quality of scalable labor
ics which also have a direct influence on the positioning of pool and infrastructure concerns.
the cities in the global outsourcing space. Latin America Many Tier II locations likewise have struggled to
is reputed for its nearshore advantages to the US; on the develop labor pools, or to at least reach the same labor pool
other hand Eastern Europe is known for its cultural affinity quality of Tier I locations. Many Tier II locations have
and geographic proximity to the Western European client also experienced labor migrations of their highly-skilled
market. resources, and as induced by rising unemployment rates.
The Tholons Location Assessment Framework thus Challenges pertaining to employability have also been an
becomes more relevant in critically identifying, monitor- occurring problem in many Tier II cities – especially when
ing, and evaluating the competencies of emerging global considering English proficiency and technical skills. For
outsourcing destinations. example, the city of Jaipur in India has lost some of its
appeal as a destination of choice due to the perception of
City Movements: Losers and Gainers low employability of its technical and managerial talent
The top gainers this year were mostly Tier I destinations pool. In contrast, and in St. Petersburg in Russia, the high
– Colombo, kuala Lumpur, Singapore, Brasilia, and technical graduate output is one of the major contributing
Montevideo. A clear factor for the movement is attributed factors which moved its ranking up, albeit having high
to the global effects of the economic crisis. With most labor costs.
economies recovering and rebuilding their competencies, Weak infrastructure support also remains a deterrent
service providers have been more keen on strategically for service providers from locating in Tier II cities. For
placing their investments in (safer) Tier I cities and in instance, India’s ITeS-related infrastructure is nearing peak
locations with established service delivery capabilities. capacities, which makes it less efficient in fulfilling the
For instance, the city of Colombo moves up 5 places this requirements of the industry. This is noticeable among
year, in recognition of its capabilities in FAO, producing Tier-I locations in India and is further observed among
accountants that meet Uk standards and the significant Tier II locations.


the top 100 cities

Movement Major Gainers Movement Major Losers Education, or Application Development Management
+6 St. Petersburg -4 Nizhniy Novgorod services from its cities. Thus, the country value proposition
+5 Colombo -4 Thiruvananthapuram is merely a rough summation of the service capabilities of
+5 Singapore -4 Belfast its key outsourcing cities.
+5 Brasilia -5 Cordoba
City-centric assessments also receive greater traction
from large service providers, and as city’s can better
+5 Montevideo -5 Chandigarh
decouple themselves from the broad or oftentimes ‘generic
+4 Kuala Lumpur -5 Jaipur
proposition’ of the country. Value propositions of the cities
+4 Brno -5 Accra
are oftentimes overshadowed by the generic country value
+4 Tianjin
proposition. Cebu City for example has high potential
to become a global kPO player but the city’s image is
The downturn has proven the importance of location often overshadowed by the Philippines’ voice-based BPO
assessment for investigating the service delivery maturities reputation.
of outsourcing destinations. Factors for locating may not For Tier II cities, decoupling will become an increas-
entirely rest on the cost advantages but on the quality and ingly necessary process, especially among emerging cities
complexity of services being delivered. Service providers with very specific skill set propositions. Decoupling from
have been keen in evaluating the best-fit city which will the country image will entail an efficient highlighting of
deliver their processes. the local value propositions and a more focused marketing
Thus, the challenge now lies for the emerging countries and promotions strategy.
to increase its overall competitiveness to gain traction in The underlying premise for decoupling still lies on the
the outsourcing landscape. This will require more effective coordination among key stakeholders in the particular
and creative initiatives that will position better position location. More responsive decision and implementation
their countries in the market and highlight their inherent will be required as the city-centric approach is significantly
service delivery advantages. smaller compared to country-level approach. Successful
concerted effort will also be a crucial factor in identifying
City-centric Approach – The Continuation of and building the outsourcing industry in the city.
the Paradigm Shift The revamp of the global economy marks the emer-
City-level analysis has always been the best approach in gence of key trends in outsourcing – a paradigm shift
identifying corresponding service delivery strengths. As encompassing the types of services and the geographies of
compared to country-wide analysis, a city-centric approach ideal locations. In the near-term, we should experience a
allows a more granular investigation of the inherent capa- more granular approach to location assessment - focusing
bilities of and the opportunities for each potential city. on cities rather than countries and as a city-centric
For example, a country having specialization in IT services approach fosters better identification of specific niche
may encompass Software Development, IT Training and services. GS

27 January, New York

“Other outsourcing conferences do not have a good mix of Buyers and Sellers.
Most of the time it is lot of sellers. So I think, it’s a good mix, you get to hear from
the buyers prospective which is very important” .
-Global Services Conference 2010 Attendee Know More


the top 100 cities

Methodology and Scope of Study
t
he Top 100 Emerging Outsourcing Destinations governments, trade bodies, and global institutions, while
2010 report was fulfilled through a combina- government publicly released data were used to present
tion of proven methodologies. First, surveys and country macroeconomic data, while market assumptions
interviews were conducted with Tier I & II and analyses were grounded by data such as annual reports,
service providers and buyers aimed at determining trends industry bulletins, and trade publications. In generating
in delivery and consumption of outsourced services in the rankings in the report, a combination of qualitative
specific destinations as well as determining market and and quantitative analyses, developed and refined by senior
labor sizes, identifying the expansion strategies of Tier I & consultants, considering numerous variables in providing
II service providers. Second, secondary research was con- the rankings and evaluating the impact of non-numerical
ducted in support of primary means. Country economic data on the assessment of outsourcing locations were
information were gathered from historical data from employed. GS

Point of Scale ResistanceSM
t
he current global outsourcing landscape is amount of investments flowing into the sector. It can
marked with by heightened competition with also be seen in aspirations (or intent) of students to
service delivery locations aiming at securing take education related to specific outsourcing service
their respective shares of the global outsourc- lines.
ing market. One major challenge for these locations is ❑ low Employability: Employability is a factor of qual-
how to better integrate their respective labor pools in the ity of education, quality of institutions and availability
outsourcing sector as service providers most often choose of industry-relevant skill sets of a given labor pool.
locations on the basis of accessibility of qualified talent ❑ High Competition: Competition is a significant fac-
in the long-term. With this shift of paradigm from basic tor for scalability as it can come from not only the
availability to sustainable and employable talent supply, services outsourcing industry but also from other
the concept of Point of Scale Resistance (POSR) has been industries hiring from the same pool.
introduced in analyzing service delivery locations. This ❑ High Risk: The perception of risk can vary across the
concept refers to the point beyond which organizations stakeholders in the industry, and hence high risk loca-
will encounter challenges in ramping up operations in a tions (at times with excellent talent pool availability)
specific location – highlighting sustainable employability fail to provide scalable solutions.
of talent. For instance, if Country A has a POSR of 850, ❑ financial feasibility: While focus has remained on
this means that service providers would theoretically cost and operational benefits, high salary inflation
encounter difficulties in ramping-up headcount beyond inhibits scalability.
850 employees. This clearly suggests that scalability is a
function of multiple parameters and not just population, The POSR concept will become an increasingly important
and the inhibitors have been classified into the following consideration for emerging delivery locations to promote
segments: their capabilities as it assists in identifying what a location
❑ low Demand: Demand can be seen not just in the can/cannot or should not do when assessing its service deliv-
number of MNCs present in the country to the ery capabilities. GS


the top 100 cities

The Top
100 CiTies
2007 2008 2009 2010 City 2007 2008 2009 2010 City
Top5 Top8 Top8 1 Bangalore 25 20 19 28 Johannesburg
Top5 Top8 Top8 2 Mumbai - 22 23 29 Toronto
Top5 Top8 Top8 3 Delhi (NCR) - 26 21 30 Rio de Janeiro
Top5 Top8 Top8 4 Manila (NCR) 32 33 27 31 Kuala Lumpur
1 Top8 Top8 5 Chennai 21 17 18 32 Coimbatore
2 Top8 Top8 6 Hyderabad 33 32 31 33 St. Petersburg
Top5 Top8 Top8 7 Dublin 27 29 30 34 Brno
3 Top8 Top8 8 Pune 22 23 24 35 Guangzhou (Canton)
4 1 1 9 Cebu City - 30 26 36 Mexico City
8 2 2 10 Shanghai 24 24 25 37 Belfast
16 5 4 11 Kraków 26 28 28 38 Warsaw

10 3 3 12 Beijing - 36 36 39 Singapore

14 9 6 13 Buenos Aires - 37 33 40 Chengdu

11 7 7 14 Cairo - 31 29 41 Jaipur

15 8 8 15 São Paulo 46 41 37 42 Monterrey

6 4 5 16 Ho Chi Minh City 43 38 34 43 Bucharest

18 16 12 17 Dalian (Dairen) 44 43 41 44 Brasília

13 10 9 18 Shenzhen 34 34 32 45 Accra

17 13 11 19 Curitiba 42 39 38 46 Moscow

7 19 17 20 Colombo - - 43 47 Tianjin

12 11 10 21 Hanoi - 44 39 48 Guadalajara

20 14 14 22 Prague 40 35 35 49 Bratislava

5 6 15 23 Kolkata - - 47 50 Montevideo

19 18 16 24 Santiago 41 40 40 51 Sofia

29 27 20 25 San José 47 46 46 52 Tallinn

9 12 13 26 Chandigarh 35 48 45 53 Halifax

28 25 22 27 Budapest 49 50 49 54 Ljubljana


the top 100 cities

2007 2008 2009 2010 City 2007 2008 2009 2010 City
Casablanca - - - 79 Penang
- - 44 55
(Dar-el-Beida)
- - - 80 Seoul
48 49 50 56 Kyiv
31 - - 81 Perth
- - 48 57 Alexandria
- - - 82 Bucaramanga
- - - 58 Bhubaneswar
- - - 83 Asunción
30 42 42 59 Glasgow City
- - - 84 Wroclaw
- - - 60 Istanbul
- - - 85 Amman
- - - 61 Cork
Birmingham,
38 - - 86
- - - 62 Jakarta Alabama
- - - 63 Nizhniy Novgorod - - - 87 St. Louis, Missouri
- - - 64 Bogotá Santa Rosa,
- - - 88 Laguna (or Metro
- - - 65 San Juan Laguna)
- - - 66 Lima - - - 89 Valparaíso
- - - 67 Thiruvananthapuram - - - 90 Port Louis
- - - 68 Medellin
- - - 91 Mysore
- - - 69 Davao City
Indianapolis,
- - - 92
- - - 70 Xi’an Indiana

- - - 71 Córdoba - - - 93 Dubai
- - - 72 Ahmedabad Oklahoma City,
45 - - 94
Oklahoma
- - - 73 Cape Town
- - - 95 Belgrade
- - - 74 Taipei
- - - 96 Campinas
- - - 75 Recife
- - - 97 Novosibirsk
39 47 - 76 San Antonio, Texas
- - - 98 Iloilo City
- - - 77 Bangkok
- - - 99 Tunis
Leeds (Yorkshire &
37 - - 78
Humber) - - - 100 Bacolod City

StatuS 2010
ESTABLISHED EMERGING ASPIRING


the top 100 cities

Top 10
emerged
CiTies

t
his year’s list of Top Emerged Outsourcing Pune, considered as the educational hub producing
Cities has expanded, identifying ten global quality labor pool in ESO and ADM remains at 8th place
delivery locations. Two new cities join the this year as it faces stiff competition from other emerged
eight previously acclaimed outsourcing cities. Indian cities.
Cebu City and Shanghai have significantly developed their Cebu City has been successful in further developing
respective outsourcing industries which have allowed these its outsourcing capabilities. An established English voice-
cities to join the Top 10 Emerged List. based processes sector supports its 9th place rank.
Bangalore retains first place for the 4th year running, Shanghai has developed complex IT and R&D services,
setting an example through its high talent output, and optimizing its labor pool, cost advantages, and transport
established and expanding service delivery capabilities. linkages, rounding of the Top 10 list this year. GS
Mumbai moves up to 2nd place this year, with its huge
labor pool consistently displaying enhanced service deliv- Rank 2010 Rank 2009 City Country
ery in complex and high-value FAO services.
Delhi NCR moves down to 3rd place this year, owing 1 1 Bangalore India
to rising real estate costs and infrastructure stress on Delhi 2 3 Mumbai India
City, and despite its established FAO sector.
Manila NCR stays at 4th place as it encounters chal- 3 2 Delhi (NCR) India
lenges in moving up the value chain towards kPO services, 4 4 Manila (NCR) Philippines
given its mature service delivery in voice Contact Support
& FAO. 5 6 Chennai India
Chennai moves up to 5th place due to its access to the 6 7 Hyderabad India
large technical talent pool from Southern India and its
maturing service delivery capabilities. 7 5 Dublin Ireland
known as the IT hub of India, Hyderabad moves up to 8 8 Pune India
6th place owing to its mature service delivery capability and
large pool of engineering and technical graduates. 9 - Cebu City Philippines
Despite its mature delivery capability in R&D and IT 10 - Shanghai China
services, Dublin constantly faces high costs and limited
scalable labor – the city slips to 7th place this year.


the top 100 cities

Top 10
emerging
CiTies

t
he list of Top 10 Emerging Cities will set the Vietnam’s Ho Chi Minh, an ITO-centric city, has
outlook for the industry in the coming years. significantly dropped three places due to scalability and
With cities coming from South America and employability of its labor pool and as service providers in
MENA regions, it is compelling to see stiffer the city have begun to experience scale-up issues.
competition arising from these locations in order to cap- Leaping 3 places, Dalian is one of the impressive
ture a significant share of the global outsourcing market. emerging outsourcing cities this year. The city experienced
Each city in the list has been positioning itself and their an estimated 30 percent increase in software and services
respective niche services and specific target markets - lead- outsourcing exports last year. Dalian has remained success-
ing to more defined value propositions per city. ful in targeting the Japanese and South korean markets for
The only Eastern European city, krakow leads the Top ITO and kPO services.
10 Emerging Outsourcing Cities List. The city has been Shenzhen moved one rank lower this year due to lower
constantly moving up the ranks since 2008. The city has annual graduate output coupled with challenges in creat-
built expertise in delivering FAO services with improving ing conducive business environment for investors.
service delivery maturity for ITO and HRO services. Large Curitiba takes ninth place this year. The city gov-
multinational companies have established their presence in ernment has embarked various initiatives like Curitiba
the city, like Capgemini, Google, IBM and Microsoft. Offshore Center to promote the city as a prime ITO hub
Beijing is second in the list of Emerging Cities. The in Brazil.
city’s primary strength is its enormous scale and talented Sri Lanka’s chief outsourcing city, Colombo, closes the
labor for ITO services. In fact, the ITO sector has already Top 10 Emerging Cities List. A significant factor for its
captured 80 percent of the total outsourcing revenues of inclusion is th e recognition of its capabilities for delivering
the city. However, Beijing continually faces challenges FAO services, together with the improvement of the per-
improving its business climate as it remains affected by ceived business and political risk. GS
strict government regulations.
Buenos Aires, the primary outsourcing city of Argentina, Rank 2010 Rank 2009 City Country
also moved one place higher in this year’s rankings. The
city has been harnessing its capabilities in delivering mul- 1 4 Krakow Poland
tilingual Contact Support Services to key markets. This 2 3 Beijing China
specialization contributes to the improving service delivery
maturity of the city. 3 6 Buenos Aires Argentina
A notable outsourcing city of the MENA region, Cairo 4 7 Cairo Egypt
moved to fourth place this year. The fusion of nearshore
advantage to Europe and multilingual skills of the people, 5 8 Sao Paolo Brazil
positions the city in delivering quality voice-based services 6 5 Ho Chi Minh City Vietnam
to European and Arabic markets.
Sao Paulo continues to move up the rankings, being the 7 12 Dalian China
banner high-value ITO city of Brazil. With still an under- 8 9 Shenzhen China
utilized pool capable of fulfilling R&D and Engineering
services, Sao Paulo is poised for better positioning in high- 9 11 Curitiba Brazil
value services in the coming years. 10 17 Colombo Sri Lanka


COUNTRY-IN-FOCUS
Ensuring Global Visibility
A special feature for countries to showcase their uniqueness
There are numerous outsourcing destinations that exist as
great alternatives to India and China.

Inviting Countries to showcase
capabilities that accentuate
their uniqueness.

Examples of Country-in-focus feature
Egypt Philippines Jordan

JORDAN

For more information write to satishg@cybermedia.co.in

Advertorial Interview of Country Representative

Stable Costs and High Quality of Talent
Pool is Jordan’s Primary Value
Proposition
How is the Jordan economy growing
presently, and what are the projections for
the immediate future?

Jordan has focused on creating a globally
integrated economy that is knowledge-
centric. Over the past two decades, prudent
fiscal and monetary policies have helped in
maintaining low inflation rates in the range of
3-5 percent and a stable currency. Exports in
the country increased from USD 4.3 billion in
2005 to nearly USD 6.3 billion in 2009. His Excellency Marwan Juma Mr. Aiman Mazahreh
Minister of Information & Chairman-Int@j
Communications Technology
External debt during the period decreased

Jordan is fast emerging as a destination of
from 56 to 21.7 percent. Gross official reserves
at the end of 2009 stood at USD 10.8 billion.

Jordan has adopted aggressive and choice for outsourcing.
comprehensive development processes with
active participation from the private sector to the economy, and produce14,928 direct Together with attractive incentives,
which are targeted at creating an investment- jobs. Exports have increased with an average investor-friendly policies and excellent
friendly climate in the country. Many of 343 percent in comparison to 2007, while infrastructure, Jordan has everything
businesses are finding Jordan to be one of the investments increased by 164 percent. The required for a smart outsourcing
most liberal and business-friendly economies industry is expected to grow to USD 250 destination. Jordan’s progressive
in the region. million over the next three years, creating government has also recently launched a
over 10,000 jobs. The outsourcing sector is new Development Zone strategy,
further supported by Jordan being one of encompassing multiple specialized zones
How did the outsourcing industry evolve in
the initial countries in the region to establish at specific industries such as outsourcing.
Jordan and what is the expected growth in
a chapter of the International Association of These development zones offer aggressive
the industry?
Outsourcing Professionals (IAOP). This financial incentives to complement existing
Jordan, as an outsourcing destination, started reflects on the growth of the country as an economic advantages of operating in
gaining prominence a decade ago. Key outsourcing destination and provides an Jordan.
potentials for the growth of the industry such extremely conducive environment for
as a qualified workforce, competitive cost service providers and shared services
What are the infrastructure
structures, a near-shore location and a organizations.
requirements of the industry and how
convenient time zone were identified early well does the country meet these
on. Strong government backing was provided What are the key factors that contribute requirements?
with world-class infrastructure, dedicated
into making the country an outsourcing
business parks and a liberal economic Jordan has one of the most open
destination of choice?
environment. Today Information and telecommunication markets in the Middle
Communication Technology (ICT) and Jordan’s primary value proposition lies in its East which is overseen by an independent
Information Technology Enabled Services stable costs, and the high quality of its talent regulator. Jordan is connected to the
(ITES) industry both contribute 14.3 percent pool that is sustainable in the long-term. international network through various fiber
...continued
http://www.intaj.net/outsourcing

Advertorial Interview of Country Representative

...continued from previous page
optic links, in addition to satellite connectivity government taking to ensure quality of by integrating technology in the
and terrestrial links with neighboring talent and how are you ensuring classrooms. Intel Teach Initiative has been
countries using modern fiber optic cable scalability of the available talent? introduced as a worldwide program that
networks. Jordan has three main submarine focuses on using computer technology as a
cables that provide reliable international Jordan has a young population with nearly powerful teaching tool and enhances the
connectivity. In addition, Damamax is part of 70 percent under the age of 30. Jordan has creativity levels of both teachers and
the Hong Kong Telecom Group PCCW’s Global one of the most successful education students. An MoU was signed between
Network, providing MPLS connectivity to systems in the region with a literacy rate of Microsoft and the Ministry of Education in
more than 1,000 cities worldwide at very 92 percent. The country is ranked first in the 2003 that focuses on creating an
competitive prices. Middle East by the World Bank in terms of Innovative Teachers Network (ITN), a
educational reforms. The government School Technology Innovation Center
The country has developed dedicated spends 20.6 percent of its public (STIC) and an Education Support Center.
business parks within the Development expenditure on the educational system.
Zones to nurture the growth of its priority English is being taught at an early age in all The government is providing computer
sectors, such as ICT and BPO. These business schools, and modern technologies and labs in all public schools and universities as
parks offer plug-and-play office space, methods have been introduced in the part of its comprehensive e-learning
connectivity and services to local and educational system to ensure technology program. A country-wide broadband
international firms and a streamlined process proficiency. network connecting all public schools,
of setting up operations. universities, community access centers and
There are a number of public-private community colleges is also being
initiatives that are focused on creating a deployed.
People are a key asset in this industry. knowledge-based economy in the country
What measures are the industry and the


Outsourcing Oasis of the Middle East Advertorial The Jordan Factfile

Jordan, located where Africa, Asia and Europe converge, is ideally positioned as
an investment gateway to the Middle East.

The country’s robust economy, huge talent pool of human capital, temperate climate, convenient
time-zone, state-of-the-art infrastructure and the ongoing economic liberalization procedures
make it one of the most preferred destinations for outsourcing firms. Jordan’s immense human
capital is one of the main drivers of growth in the region. A workforce, widely regarded as one of
the most competitive and qualified in the region, has contributed to Jordan being ranked ninth in
the 2009 Global Service Location Index (GSLI) by analyst firm AT Kearney. Strong work ethics and
low attrition rates work in Jordan’s favor. Jordan invests more than 20.4 percent of its GDP on
education and has more than 200,000 upcoming graduates to meet the demands of the fast
growing outsourcing industry.

Jordan possesses world-class infrastructure in terms of Internet connectivity, telecommunications
network as well as transport accessibility within the country and to international destinations.
Dedicated business parks which boast of international standards of connectivity and services have
been set up in Amman and Irbid to nurture the growth of the BPO industry in the country. These
parks offer a streamlined regulatory environment and various tax benefits, coupled with high-end
housing and associated facilities to attract and retain further investment in the outsourcing sector.

Jordan enjoys strong government support and reliable telecom connectivity through various
international submarine cables for its ICT sector. This has made it the fastest growing sector in the
Jordanian economy with an annual average growth rate of 25 percent. The ideal location of the
country, investment-friendly economic climate and competitive rates contribute to the steady rise
of Jordan as a preferred outsourcing location.

at a glance
Currency: Jordanian Dinar Countries that outsource business to Jordan:
Gulf Cooperation Council (GCC) countries, US, UK, Middle East
Main industries: Tourism, Banking & Financial Services, and North Africa (MENA) region
Engineering Services, Healthcare & Pharmaceuticals, Energy &
Renewable Energy, Information & Communications Technology Key verticals: Healthcare, Banking, Insurance, Telecom,
Hospitality, Technology
Literacy rate: 92%
Key services: Business Process Outsourcing,
Languages spoken: Arabic (official), English, French, German, Information Technology Outsourcing, Knowledge Process
Armenian, Spanish Outsourcing, Shared Service Centers and contact centers

International airport: Amman (2), Aqaba Some big players: Hewlett-Packard (HP), Dell Perot Systems,
CISCO TAC, CrysTelCall, Extensya, Aspire Services, Microsoft, Oracle
GDP growth (World Bank): 2.8% (2009)
Key competitive advantages: Robust Economy, Strategic Location
th
Global ranking: 9 in the 2009 Global Service Location and Convenient Time Zone, Immense Human Capital Resources,
Index by analyst firm AT Kearney Investor-friendly Economic Environment

Quick look at the IT-BPO sector growth Main cities: Amman, Irbid

Total number of employees: 14,928 Emerging locations: Aqaba
Annual growth rate of IT/BPO sector: 25 percent

Advertorial Opportunities and Future Potentials

The Face of Jordan
Now and Beyond

Jordan’s commitment to economic liberalization and its privatization program have been recognized by the
World Bank. The World Bank lauded the privatization program as one of the most successful programs in
the Middle East and North Africa (MENA) region.
Jordan has created a competitive, free market Jordan’s strength lies in the ICT, health and Jordan is also taking necessary steps to
though a multi-pronged privatization financial sectors. The growth of the enhance the existing infrastructure base in
approach. Today, the private sector plays a outsourcing industry is expected to the country. In 2010, VTEL Jordan and
major role in spearheading growth and concentrate on these sectors by building Reliance Globalcom are establishing a link
development in the country. Jordan is now vertical specialization in financial services, to the FALCON undersea cable through
seen as one of the most business-friendly medical services, IT outsourcing, Aqaba which would triple the current
economies in the region. The government has telecommunications and tourism services. bandwidth. It will be the first 'Terabit' cable
also taken significant steps to streamline landing in Jordan.
The future of the ICT sector looks rosy with
regulations and decrease red tape.
the sector continuing its exponential The future of outsourcing in Jordan
Establishing business ventures in Jordan now growth. Jordan's National ICT Strategy for promises to be bright with an industry
takes less time than the average number of the next three years identifies the sub- poised for growth in all sectors. KPO and
days in the MENA region. sectors that are conducive for growth in the BPO operations are expected to head the
current economic situation in the country. growth ably supported by concerted
The Development Zones established across
Government initiatives to facilitate this efforts put in by the government and the
the country in key business areas offer
growth are also laid out. The plans include private sector. An attractive business
reliable infrastructure, specialized services,
developing a USD 3 billion ICT sector, environment, combined with supportive
labor and resources to access major regional
provision of 35,000 jobs and increasing government policies and world-class
and global markets. At present, there are six
Internet penetration to 50 percent. Other ICT infrastructure, will continue to make Jordan
zones that are operational throughout the
initiatives include provision of laptops to one of the most sought after outsourcing
country offering various investment
university students, encouraging women in locations in the MENA region.
opportunities. Jordan’s ICT sector today is the
technology programs and graduate Contact info:
fastest growing sector offering more than Int@j
internship programs.
80,000 jobs with an annual average growth Tel: +962 6 5152322
rate of 25 percent. e-mail: info@intaj.net


Quotes from Reports Advertorial Testimonials

Jordan at the ninth place is another top multi-lingual agents with university designed to make Jordan more accessible
performer as it has solid capabilities in IT and education, coupled with excellent language to the rest of the world.
is home to numerous successful outsourcing skills has been a compelling reason for this
companies that compete internationally. It growth. Jordanian telecom has invested over USD
has also one of the region’s most favorable 400 million in recent years in a number of
business environments. It is clear that from the standpoint of technology solutions designed to make
telecommunications, Jordan has made Jordan more accessible to the rest of the
~ A.T Kearney Report 2009 significant strides over the past decade. In world.
addition to the efficiencies still being
realized by the deregulation of the telco ~ Datamonitor
Currently, there are several contact center
sector in 2005, Jordanian telecom has
operations in Jordan serving clients
invested over USD 400 million in recent
domestically and offshore, across a variety of
years in a number of technology solutions
vertical markets. In addition, the availability of

Publications
It looks like another little oasis of IT delivery is As to the cultural milieu, Jordan has an open have rendered it definitive advantages,
building up as the vast sands of the Middle and welcoming arm. On the infrastructure including a favorable time zone, proximity
East blow winds of new market opportunity; side, areas like powers, roads and buildings to continental Europe and the country's
now Jordan joins the club, as it gets all set to are positive. It has already been recognized perception as a stable oasis in a stormy, but
woo the outsourcing industry. on the eco-friendly distinction, where the vital, region.
example of Amman, a building zone, is cited
At the Nasscom Summit 2009, foreign as an example, and an award-winning case Enthusiasts also point out that Jordanians
delegations of many hues and shades were in masterful city planning. can offer relatively low compensation costs,
seen exploring and selling business as well as exposure to English languages by
opportunities in the new world order that is ~ Global Services Magazine virtue of its strong focus on education,
shaping up for a post-recession scenario. We especially at the tertiary level.
could see delegates from Jordan too. They
were not only prepared for a strong ~ Jordan Business: Jordanian Magazine
competitive pitch, but also had large To highlight the benefits, Jordan’s
spoonfuls of the pudding’s proof up their geographic and geopolitical positioning
sleeve.

Testimonials
Jordan is open for business with a very dedication has paid off, and businesses Development Zones.
capable and sought after workforce, continue to succeed. Thanks to all the
competitive cost structure, political stability, partners involved, the country continues to His Excellency Dr. Bilal Bashir
Chief Commissioner, Development Zones
ease of access, robust ICT infrastructure, as gain visibility as an outsourcing destination.
Commission
well as a government that is fully committed
to creating the right investment environment. Som Mittal
President, National Association of Software
These are only some of the factors that
and Services Companies (Nasscom)
position Jordan as a great global destination Jordan has enabled the ITO/BPO services
of choice as well as the ideal access point and industry and we run our operation supported
gateway to the Arab world. by a strong legislative base, a sound telecom
infrastructure and skilful human capital which
His Excellency Mr. Marwan Juma BPO investors will find in Jordan a highly really makes our business succeed. The
Minister of Information and Communications advanced legislative and infrastructure government is involved in updating the skills
Technology platform that supports their work and of IT trainees to qualify them for our line of
business endeavors. The Development Zones business.
Commission (DZC) facilitates all necessary
Coming to Jordan opened our eyes to the
procedures and arrangements for the Kaushal Shah
country’s potential. The country’s will and
industry to operate and prosper in the Managing Director, Aspire

by Sruthi Ramakrishnan

� location Assessment: Perception and Reality for Global
Businesses 28
� Europe: Showcasing the Challenges and opportunities 32
� Perspectives and Potential of Asia’s Hotspots 36
� Middle East & Africa: leveraging Africa & Middle East 41
� latin America: The Enduring Promise of latin America 44

regional Dynamics

Location Assessment: Perception and
Reality for Global Businesses
Global Outsourcing Locations

Evolution of Services Driven Economy
15 years ago, there were very limited options in terms of outsourcing. India was the
predominant answer for IT outsourcing. 10 years ago, BPO started coming up as
well. At that point, 2 primary locations emerged: India and Philippines. Predominant
clients for them were the US and Uk, basically the English speaking countries.
When Europe started showing interest, people were very finicky about the data
Acts and data privacy as they started having Eastern Europe come into prominence.
Some of the South American countries began coming into prominence through
nearshoring from the US and their Spanish language capability.
What is it that makes a location emerge as a preferred location? Perceptions about
a country and the reality can be very far (illustrated in table 1).

Why are clients seeking new geographies?
Clients are beginning to look outside India, Canada, Philippines and Eastern Europe
and Latin American countries, because of:
• Localization- More so if you have a product and have to localize that for a given
country. Every product cannot be built to meet the local conditions of every
country, but a regional center can help facilitate localization of products. Also, a
client in the US outsourcing his call center functions would rather have his service
provider provide services out of a center in the US rather than offshore.
• Evolving and Developing Processes- Some locations are reaching talent saturation,
leading clients to look for other locations where they can get talent at better qual-
ity and at a better price.

Figure 1 the Global
Offshoring Landscape

Source: Tholons- Global Services January 2010 webinar ‘Location Assessment: Perception and Reality for Global
Businesses’


regional Dynamics

City Perception Reality table 1 Global Delivery
Locations - Perception vs.
Colombo, Sri A war-torn nation One of the fastest emerging FAO destinations with
Lanka more than 50,000 people employed in the IT/BPO
Reality
industry in Colombo and growing at over 20 percent
year-on-year. Sri Lankan IT BPO industry grew at 23
percent even during the war time.
accra, Ghana Cocoa Producer Nation Destination for Back Office processes with presence
of companies such as ACS and 3G (Contact Support)
and the development of initiatives such as the Kofi
Annan ICT Center of Excellence for Human Capital and
Infrastructure Development. Companies like 3G are
looking to expand workforce in the next few years in
this commercial gateway to Western Africa.
Bhubaneswar, Crowded Tier-II City One of the fastest growing IT regions in India with
India ample labor force in IT and Engineering (with 60
Engineering colleges producing 25,000 graduates
per year). Bhubaneswar is a location of choice for
big industry players in India with the presence of
companies such as Wipro, Infosys, Mahindra Satyam,
and Tata Consultancy Services.
Santiago, Chile considered as a Foreign investor-friendly business environment and
Chile small LatAm country with technical industry capabilities strongly support high-
a limited population and value services in KPO-ESO. Chile’s IT-ITES workforce
not known traditionally produces $38,095 per FTE in the industry which is
for outsourced services 41 percent more than India. This is due to higher
value services being performed out of Chile compared
to India (on an average).
Businesses’

Figure 2 Key Question:
Where should we locate?

Businesses’


regional Dynamics

Figure 3 Parameters
influencing selection:
Process Requirements and
Geographical & Operational
Delivery Models.

Businesses’

Outsourcing
• Integration of new countries into the Global Economy (Example: Brazil, South
to the Right
Africa, China)
Location vs. • New Customer Segments are emerging- For example, customers are looking at
Brazil because it is a significant economy growing at a fast pace. So while certain
Offshoring?
things can be outsourced to Brazil, at the same time clients are looking at address-
The change in terminology ing the available market there. The same can be applied to China.
is a sign of maturing of the • Customer Demand is becoming more sophisticated
industry and its players. The
right solution at this point to Why will existing solutions not be enough in the new decade?
the outsourcing/ offshoring/ • Closer to Customer
nearshoring debate is global • New Generation of Services
sourcing. It is more offshor- • Specialized Skill Requirement
ing than outsourcing. • Established Locations inhibited by Talent Saturation
Why global sourcing?
Firstly, if something is not Moving from Emerged to Emerging
outsourced to a third- party There is a move, where clients are feeling that emerged destinations are saturated in
vendor, it is insourcing. terms of the labor pool, and have salary inflations year over year. There is a churn in
Outsourcing does not neces- the people which leads to lower quality. So clients are looking for emerging destina-
sarily cover that. Secondly, a tions which probably have a higher talent pool available, lower costs and governments
significant number of clients more eager to attract investments. Clients who have been in outsourcing for around
are willing to have everything 10 years are moving from established locations.
sourced and not keep any- Main factors in play in this shift:
thing within the physical  Emerging destinations being viewed as opportunities:
confines of their office. This • merging Locations will hold the key in the near future for Global corporations
E
does not mean it is going as they will provide as host of new opportunities. They are looking at such loca-
off the shore or out of the tions to bring high quality and scale together with low costs.
country. • merging Economies, opportunities to tap the domestic talent and market, and
E
So the only term today evolving customer demands are driving client and service provider migration to
which covers all of this is new international geographies
global sourcing.  Perception marketing:
• erception Marketing: Effectiveness of conveying concrete information, strategic
P


regional Dynamics

Figure 4 Emerging
Destinations – What to
Look For

Businesses’

marketing, and promotions to combat negative external perceptions will be crucial
in attracting potential clients and competing in the global services industry
• Employability” and “Scalability” are now more critical to “Productivity” and
“
“Sustainability” with exceedingly lower emphasis on “Cost Advantage” alone
 Importance of distinct Value Propositions:
• ompetitive and shareholder pressures are driving demand, creating more nim-
C
ble, efficient market players
• ue to the rapid maturity of the services outsourcing industry, locations are
D
struggling to create and sustain their competitive advantage – making it even
more important for “value propositions” to be brought out using the “Centers
of Excellence” model


regional Dynamics

Europe: Showcasing the Challenges
and Opportunities
The Emerging Nearshore

Western Europe has done a significant amount of nearshoring to Eastern Europe.
Over the years, the gap in GDP between Western Europe and Eastern Europe has
widened instead of declining, which has helped in attracting clients from the former
to the latter. This has helped in making nearshoring to Eastern Europe an attractive
Prominent nearshore options: opportunity.
Eastern Europe It has been a destination of choice for Western Europe for more than a decade and
6 poland: kraków, Warsaw, this attractiveness has become stronger over the years.
Gdansk, Wroclaw
6 Czech Republic: Prague, Brno CHALLENGES
6 hungary: Budapest  Clients face dilemma- No single country can take care of all languages. But
6 Russia: St. Petersburg, Estonia can take care of the 5 major languages.
Moscow, Nizhniy Novgorod,  Most smaller countries do not offer scale
Rostov-on-Don, Novosibirsk
6 Romania: Bucharest, ADVANTAGES
Cluj-Napoca  Europeans are conservative businessmen compared to their American counterparts
6 Ukraine: kyiv, Lviv
and are more comfortable keeping work closer to home. Thus nearshoring is a
favored option.
6 Belarus: Minsk
 Considering a cut off population of 10 million, only Russia, Ukraine, Poland,
6 slovakia: Bratislava Romania, Belarus, Czech Republic, and Hungary have the advantage of a sizable
Bulgaria: Sofia talent pool
6 slovenia: Ljubljana  Multiple factors enable to be perfect nearshore options for Western Europe like:
1. Financial Attractiveness 3. Trade laws (European Union)
6 serbia: Belgrade
2. Cultural compatibility 4. Excellent Education
6 estonia: Tallinn
6 Croatia: Zagreb Major clients nations in the region are:
6 Latvia: Riga  United kingdom  Denmark
6 Lithuania: Vilnius  Spain  Finland
6 Malta: Valletta  France  Germany
 Italy  Norway
Source: Global Shore 2010 webinar  Sweden
‘Europe: Showcasing the Challenges and
Opportunities’
REGIONAL DYNAMICS
 European Union member countries in Eastern Europe have significant advantages,
providing them the edge to become “nearshore locations of choice”
 A recent trend is of clients preferring to send work onshore or to nearshore loca-
tions. This is true for US itself. This is not necessarily because of a language pref-
erence. This is being preferred even at a higher cost than offshore locations. This
trend is favoring Eastern Europe.
 Being a part of the EU makes the smaller countries offering cost arbitrage very
attractive nearshore destinations, some other benefits for Eastern European


regional Dynamics

countries becoming members are:
• Political stability and greater integration
• Increased trade
• Increased inward investment
• Social policies and subsidies
 Eastern Europe has attracted a lot of investments from service providers and cli-
ents (captive operations) in the last 3-5 years making it a strong “offshore cluster”
and a “skills cluster”

Global Clientèle
 With 63 percentage of all developed countries in Western Europe, it is the largest
cluster of buyers across the world. This attracts large business firms from across
the world to have centers in the region to cater to the domestic markets in these
developed economies.
 Eastern Europe hence caters to the global clientele indirectly, this has successfully
built a strong brand for “Nearshore to Eastern Europe”, offering cost differential
of 15-20 percentage compared to Western Europe.
 Clients say productivity per employee higher in Eastern Europe than offshore loca-
tions like India, Philippines and China.
 High skill sets available for processes like Product Development (Turkey, Ukraine,
Russia), Regional Multilingual Skills (top 5–6 locations of previous list), and
R&D (Russia and across the region).
Europe: Centers of Excellence

Region/ Country/ City Core Specialization Companies Established
Figure 1 Europe: Centers
of Excellence.
• Specializes in R&D, Infrastructure SAP, Quest Software, IBM, Microsoft,
Western Europe

Ireland Dublin Accenture, Marino Software, PMI
Services and Custom Development
Application Software, Infosys, Deloitte, Amazon

• High value processes in Financial Barclays, Accenture, InfoTech, HCL,
U.K. Belfast Analytics, R&D and Applications Capgemini, HP-EDS, KPMG, Xerox,
Development Management ECOM, First Data

• Business Analytics, Finance and Google, IBM, Motorola, Fujitsu, HCL,
Poland Kraków Accounting Outsourcing, multilingual Capgemini, ACS, Hewitt, Quantum,
Contact Support, HR Outsourcing Sabre

• Focused on HR Outsourcing, R&D Sun Microsystems, Accenture, GE,
Czech
Eastern Europe

Prague processes and emerging destination for SAP, Google, Intel, Capgemini,
Republic
Engineering design services Mahindra Satyam, IBM

• Focused on HR Outsourcing, R&D in SAP, Microsoft, Sun Microsystems,
Hungary Budapest Software Development and Testing TCS, Genpact, Cognizant, Canon,
Mahindra Satyam, SCA

• Specializes in Engineering Design and Intel, Motorola, Sun Microsystems,
Russia St. Petersburg R&D services. Boeing, HP, Auriga, Google, Luxoft,
EPAM, Arcadia

Page 10
Source: Global Shore 2010 webinar ‘Europe: Showcasing the Challenges and Opportunities’

PRIMARY VALUE PROPOSITION
It is a viable nearshore destination for Western European clients for several reasons:
 Western Europeans prefer outsourcing to Eastern Europe than to traditional
offshore destinations like India or Philippines due to the unique service delivery
profile of Eastern Europe.
 Factors such as cultural affinity, skills expertise, labor pool availability which
includes engineers and scientists who are not abundantly found in offshore loca-
tions, contribute to this appeal.


Destination Compendium 2010

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