India Continues To Be Top Overall Outsourcing Destination: Tholons

Tholons has announced the release of TheTholons Top 100 Outsourcing Destinations 2010 Report.

In recognition of the increasing demand and competitiveness of emerging cities for services, this year’s report has a larger geographical scope from 50 cities to 100 cities and 10 identified regions. Using the proprietary and industry-leading Tholons Location Assessment Framework, Tholons has identified Top 10 Established, Top 50 Emerging, and 40 Aspiring Global Outsourcing cities.

Bangalore, India still rates as the top destination overall and Manila as the ‘BPO Capital of the World’. Krakow, Poland leads the Emerging Cities list followed by Beijing. Two cities have been promoted to Established Cities list. The winners are Cebu (Philippines) ranked number 9 and Shanghai (China) ranked number 10 - both have shown significant increase in service delivery maturity.

This year, Tholons has introduced the Point of Scale Resistance (POSR)SMIndex. POSR rates the respective Country or City’s ability to Scale and Sustain a services business. Employability is a critical factor in growth of high value and specialized services.

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“Outsourcing destination’s attractiveness has evolved over the years. Presently, being able to scale and sustain operation at attractive costs is the primary driver and the theme for Top 100 for 2010,” said Avinash Vashistha, Chairman & CEO, Tholons.

While the established locations are moving up the outsourcing ladder, the emerging cities are facing increasing competition. They need to differentiate and at times decouple themselves from the better known Tier 1 cities in a given country. The more relevant growth strategy today is ‘City’ specific rather than ‘Country’ centered.

“Tier-II cities in established offshore nations like India and Philippines now face stiff competition from Tier-I cities from relatively newer outsourcing regions like Latin America, Eastern Europe and MENA. Marketing and promotion of unique selling points is key today,” said Manuel Ravago, Research Director, Tholons.