Destinations Compendium 2011

Hangzhou, China
A City of Financial Delivery Center

Demonstration City of Chinasourcing
Hangzhou
Hangzhou is defined as the “China Service Outsourcing Demonstration City” in February 2009. Hangzhou is also
one of the 21 software industry base cities in mainland China. It has currently formed the several industries including
telecommunication, software, integrated circuit, digital TV, animation games and E-commerce.

The revenue of software business in Hangzhou was achieved at 47 billion RMB in 2009, the software export revenue reached at
460million USD. There were total 112 enterprises passed CMMCMI, ISO27001 certification. There were 20 IT software enterprises
have list on public market, two companies ranked at Top 10 of self-brand software products, total 15 enterprises have list at the
key software enterprises name list of the national strategic planning.

In order to accelerate the development of outsourcing industry, Hangzhou Municipal Government set up the leading team
to draw up the development plan, issue the supporting policy to make the rapid development of outsourcing industry in
Hangzhou. The total delivered amount of offshore outsourcing business reached at 919mllion US Dollars, risen to 352%
compared to the same period of last year (2008).

Hangzhou government has put more focus on the financial service outsourcing that is considered as the medium and high end
outsourcing industry, Hangzhou now is creating to become the financial delivery center.

For more details, please click:
http://www.great-idea.com.cn/hangzhou/hhtz.htm
http://www.great-idea.com.cn/hangzhou/

International Financial Outsourcing Center

Planner & Organizer: Great-Idea Business International Outsourcing Promotion Center

2011 the West Lake, Enlightenment and Discussion
Discovery, Transformation, Reaction, Share

To Combine the Global Resources and Facilitate the
Integration & Improvement of Global Service Capability

For Your Attention International Outsourcing Business Development Summit
Date: October 24-26, 2011
Venue: Zhejiang Narada Grand Hotel, China

Sponsors:
Ministry of Commerce of the People’s Republic of China
Ministry of Industry and Information Technology of the People’s Republic of China
Ministry of Education of the People’s Republic of China

Host City :
Hangzhou People’s Government

Ofﬁcial Promotion:
Hangzhou Municipal Foreign Trade & Economic Cooperation Bureau

International Financial Outsourcing Center

Contact: Tel-8610 85863613 Fax-8610 59081093 Email-salida-liu@great-idea.com.cn

Global ServiceS
A CYBERMEDIA PuBlICAtIon
An integrated media platform which connects the
Pradeep Gupta
various constituents of the global technology and Chairman & Managing Director
business processing services industry ecosystem. Cyber Media (India) Ltd.
E. Abraham Mathew
Directory of ServiceS President
Ed nair
NewSletter Editor
ed@cybermedia.co.in
A regular digest of key industry happenings.
Satish Gupta
DiGital MaGaziNe Head of Sales and Marketing
satishg@cybermedia.co.in
The monthly digital magazine features research
reports, articles and experts’ views. Available on Smriti Sharma
www.globalservicesmedia.com smritis@cybermedia.co.in
Smita Vasudevan
webiNarS smitav@cybermedia.co.in
Global Services’ web-based seminars aim to Sourabh Chandra Pushp
impart useful information related to outsourcing sourabhc@cybermedia.co.in
industry in the form of presentations and discus- niketa Chauhan
sions by industry specialists. niketac@cybermedia.co.in
Gary Bindra
reSearch Manager International Sales
We deliver indepth analysis and research reports gurdeepb@cybermedia.co.in
on sourcing subjects. Rahul Randhawa
Manager International Sales
MicroSiteS rahulr@cybermedia.co.in
Online resource center designed to provide Global Services
focused content on special subjects to the out- Cyber Media (India) Ltd.
sourcing community. CyberHouse, B- 35, Sector 32
Gurgaon-122001, India
eveNtS Tel: +911 24 4822222
Fax: +911 24 2380694
From multi-day, high-level, resort conferences to
Contact:
intimate breakfast discussions we offer a number
globalservices@cybermedia.co.in
of opportunities that connects the outsourcing
community. Disclaimer
All rights reserved. No part of this publication may be reproduced
by any means without prior written permission from the publisher.
cUStoM ProGraM
Customized services rendered through different letterS to the eDitor
media platforms. Send letters to ed@cybermedia.co.in, or to
any of our writers. We reserve the right to edit
oSoUrce booK all letters. Postings submitted to our blogs and
A directory of global outsourcing service providers. letters to the editor may be published in our
www.osourcebook.com digital magazine or Website.

YOUR STRATEGIC
TECHNOLOGY
PARTNER
Building solutions for
Finance, Telecom, IT,
Automotive and Energy
sectors
 5000+ best in class engineers
4500+
 18 offices in 11 countries
 Track record of building highly complex solutions
 Expertise in business and technology domains
 Focus on innovation and R&D
 Best-in-class processes
CONTACT US:
MICHAEL MINKEVICH ROMAN TRAKHTENBERG
VP Technology Services Managing Director, Luxoft USA
E-mail: MMinkevich@luxoft.com E-mail: RTrakhtenberg@luxoft.com
Tel: +7 (495) 967-8030 x4427 Tel: +1 (212) 964 9900x 240
www.luxoft.com Mobile: +7 (495) 364-9137 Mobile: +1 (917) 930-205

EDItoR’S notE

Global City
Competitiveness:
Summarizing the
ED Nair, Editor
ed@cybermedia.co.in Dynamics

T
he services industry has earned the reputation of being a very respectable, environment-
friendly, and economically rewarding industry amongst its many other advantages. It is
no wonder that this has set off a race of sorts between countries and various cities.
For buyers of services, the question ‘which place to go’ has always been crucial. The decision
has direct impact on costs saved, capacity/ scale added, risks managed, and ultimately the over-
all value maximized by the enterprise. What makes this game interesting is that these parameters
are dynamic; sometimes they change within a year, yet in other cases, it takes years for a location
to gain a pixel worth of attention on the map.
Studies on locations are therefore very interesting and useful because they embody the net
result of actions taken to develop a location and results obtained from these actions. This leads
to the constant shifting of the order or a re-ordering of the ranks of cities that attract work in
global services.
Ranking of cities is becoming not only increasingly difficult but also progressively untenable
in presenting a holistic view of how cities develop. Not everything can be shrunk into a number,
as they say. Hence, we decided to do away with the practice of ranking cities to create the Top
100 Outsourcing Cities list and instead created a list of 100 cities that represent a threshold in
service delivery.
Our research partner for this year’s study is NeoGroup, the premier sourcing advisory firm that
has been tracking globalization in services delivery and competitiveness of service locations
for more than a decade. NeoGroup’s annual study on city competitiveness provides the main
research input into this year’s Global Services Destinations Compendium.
As usual, the Global Services Destinations Compendium is an attempt to bring together the
myriad dynamics of outsourcing locations in one place-complete with research, data, and expert
opinions. At the most granular level, we look at cities and how they compare with each other.
More importantly, we look at how upwardly dynamic cities are compared to previous years.
Credit is due to the cities that are featured in this issue for their sustained efforts at developing
the outsourcing industry.
Welcome to the Global Services Destinations Compendium 2011!

True Public Private Partnership
Reliable Infrastructure

Central Location

Committed to Investors’ Success
Investor Friendly
CMMI and SPOT Certi cations
Educated Human Resources

CoNTENTS
11 THE TOP 100 CITIES
2012 Top 100 Global Services Destinations 12
Key Insights 14
Methodology & Coverage 16
Global Cities Coverage 17
Country Snapshot:
APAC 18
EMEA 19
Latin America 20
City Profile:
Dalian 21
Bogota 22
Cairo 23

29

REGIONAL DYNAMICS

Asia 30
Europe 40
Middle East & Africa 45
Latin America 50
North America 59

69

EXPERTS
The Case for Nearshoring: Why and How the New Normal
will shift Sourcing Dynamics 70
by Anupam Govil, Partner with Avasant and President of Avasense

Global Supply Risk Management: Monitoring and Managing Global
Sourcing & Services outsourcing Risks 76
by Atul Vashistha, Chairman & CEo, Neo Group Inc.

Latin America: De-risking is Becoming Ever More Critical
by Benigno (Beni) Lopez, Chief Globalization officer, Softtek
86
Destination Strategy - What Makes/Breaks It? 90
by Deepali Sathe, Project Manager, ValueNotes Sourcing Practice

Compete or Cooperate? Bridging the Near shore- offshore Divide 94
by Lalit Dhingra, President, NIIT Technologies Inc.

Choosing the Right offshoring Destination 96
by LN Balaji, President of ITC Infotech

Does Captive offshoring Still Make Sense? 100
by Nigel Hughes, Compass Management Consulting

Africa Rising – outsourcing Juggernaut set Sails 103
by Dr. P.K. Mukherji, President & Managing Partner, Avasant

Africa : A Ripe Terrain for Impact Sourcing 108
by Pumela Salela, BPo Consultant

Business Transformation and the Expansion into Asia 114
by Sudhir Narang, Managing Director, BT India

Location Strategy For Indian Delivery Centers 117
by Viral Thakker, Executive Director, Head – Shared Services and outsourcing Advisory KPMG
in India and Jehil Thakkar, Executive Director Head – Global Location and Expansion Services
Advisory, KPMG in India

the top 100 cities

n 2012 Top 100 Global Services Destinations ............. 12
n Key Insights ............................................................ 14
n Methodology & Coverage ........................................ 16
n Global Cities Coverage ............................................ 17
Country Snapshot :
n APAC ...................................................................... 18
n EMEA ..................................................................... 19
n Latin America .......................................................... 20
by
City Profile :
n Dalian ..................................................................... 21 Neo Group &
n Bogota .................................................................... 22 Global Services
n Cairo ....................................................................... 23

12
12 E X P E R T S

2012 Top 100
Global Services Destinations
Key Topics covered
• Detailed profiles of 100 cities across Asia Pacific, Europe, Middle East, and
Africa, and Central and Latin America
• Key outsourcing services from each city
• Current and future attractiveness of cities
• Established, emerging, and nascent locations by outsourcing service
functions
• Data on annual graduate pool, IT and BPO workforce, industry size, attrition
etc for each city
• Recommendations on location strategy and evaluation

http://microsites.globalservicesmedia.com/destinations2011 Destinations Compendium 2011

The Top 100 Cities
13

2012 Top 100
Global Services Destinations

O
rganizations continue to adopt outsourcing as a business strategy and
an effective optimization and transformation lever to help them mitigate
the current financial and competitive challenges. As a consequence of
increased adoption of outsourcing, the global sourcing landscape has
been undergoing changes and many global locations are evolving to serve specific
needs of organizations that embark on their globalization journey or evolve as mature
globalizers.

Global sourcing is mainstream. While cost containment will continue to be an
important factor in the global sourcing decisions of organizations, other factors such
as access to a global talent pool, new market entry, and geographic risk diversifica-
tion have become increasingly important. The cities covered in this report are by no
means an exhaustive set of potential destinations. New destinations are constantly
emerging in the global marketplace. This report attempts to provide its readers a
view of the changing landscape across the more established as well as emerging
destinations. We hope this report will provide you with insights as you consider and
evaluate options as part of your organization’s location strategy.

This report analyzes a mix of established as well as emerging and nascent out-
sourcing destinations. The report covers over 100 cities across 50 countries. While
traditional and preferred outsourcing destinations have been the focus of attention
for over a decade, this report provides a perspective of many other locations that
possess a strong potential to emerge as successful global sourcing destinations in
future.

The complete report will be available in November 2011 at www.neogroup.com
and www.globalservicesmedia.com


14

KEy INSIghTS

City, not Country: Location assessment based on country selection is a good starting
point, but cannot be the basis for an organization to set up operations. Certain macro fac-
tors such as currency and risk perception are the same across the country. However, sev-
eral important criteria for location assessment such as quality and availability of labor,
taxes and other incentives can vary significantly across cities within the same country.
Assessing organizational determinants and mapping them against market determinants,
at a city level would be the recommended approach. Country based assessments, often
tend to overlook organization specific requirements.
The Changing Landscape: Global outsourcing destinations can be categorized as
established, emerging, and nascent, based on the maturity of locations. While estab-
lished locations have inherent challenges of higher costs and sustainability, they are
still the most optimal fit for mature and advanced globalization activities. Tier-II and
Tier-III global cities are gaining increased attention where organizations are keen on
leveraging an early mover advantage. With the migration of talent becoming a com-
mon global phenomenon, such low cost cities are well placed to offer their competitive
advantages.
Expansion of global Sourcing: Several factors are resulting in the expansion of the
global sourcing landscape. IT and BPO service providers are expanding their global
delivery capabilities beyond the established hubs such as Bangalore, Manila, Warsaw,
Shanghai, etc in order to access new sources of talent, overcome the fight for talent in
established locations, preserve their margins by going to lower cost locations as well as
have the first mover advantage and be the employer of choice. Margin preservation, a re-
look at core competence, gaining an early mover advantage, revenue preservation, mul-
ti-lingual requirements to address global markets are few drivers adopted by matured
globalizers that continue to expand the global sourcing landscape. This expansion is


The Top 100 Cities
15
taking place not only in cities in newer geographies but also in Tier-II cities in countries
such as India, China, Philippines, and Poland. Governments and local administrations
are also wooing investors via incentives as well as through the development of business
and human resource infrastructure to promote their locations. Finally, as established
destinations evolve in terms of service maturity and complexity of services offered,
newer cities will emerge to fill in the void and become attractive from a cost and capa-
bility perspective for less complex skills.
Scale vs. Niche: An important consideration for companies establishing their delivery
centers is also to consider their headcount requirements. The choice of a city for set-
ting up a large delivery center with headcount in thousands is fundamentally different
from a requirement for resource headcount of a few hundred or less. Few countries and
specifically, few cities offer a viable opportunity to scale operations. Cities in populous
countries such as Brazil, China, India, Poland or the Philippines stand out for such
requirements. Even within these countries, scalability issues vary by city. While estab-
lished cities such as Sao Paulo, Manila or Warsaw may offer limited scalability for a
company in today’s environment, emerging cities in these countries such as Campinas,
Cebu, Łód or Pozna may be more viable alternatives. While ‘nascent’ cities with limited
activity look attractive, companies should consider the potential supply shocks that
may result with rapid, large scale expansion and increased wage and cost pressures.
For many matured globalizers that target global markets, multilingual requirements and
offshoring advanced and core activities of business functions have become key require-
ments to sustain competitive advantage. Such organizations have a unique requirement
of combination of scale and niche skills which mostly can be supported by established
and matured outsourcing destinations. Leading product development firms and profes-
sional services firms are good examples of such matured globalizers.
Role of government Support and Incentives: The success of the IT and BPO sectors
in employment generation in the economy, increased standards of living, contribution
to the region’s exports, GDP growth as well as a diversification to a service oriented
economy is abundantly clear. Success stories of countries such as India, China, and
Philippines have made governments and local administration in other regions realize
the tremendous potential and accompanying benefits. In order to wean potential inves-
tors, incentives in the form of corporate and income tax holidays, subsidized or free land
grants, lower customs and export duties, fast-track, single window regulatory clearances
as well as incentives for training and recruitment are provided. While the nature and
basket of incentives offered varies across cities, it is a common theme that runs across
the cities that we have covered in this report. Companies that are early or first movers
are the biggest beneficiaries of government incentives, as the local administration is
keen to develop an initial set of success stories that can be used to effectively market
the region to attract further investment in future. The role of government in identifying
the ICT sector as a strategic growth area and channelizing planning efforts are critical
success factors for a location’s attractiveness.


16

MeThodology & coverage
Data for this report was collected using a combination of primary and secondary
research. Neo Group contacted outsourcing industry associations from various countries,
software technology parks, investment agencies, as well as service providers across 50
countries covered in this report.
The data gathered was qualitatively analyzed using Neo Advisory’s proprietary
location assessment framework. Leveraging our experience on location assessment
engagements by working with our clients, the research focuses broadly on eight
categories that are critical to be analyzed while choosing a location.

Location Factors Key Parameters
Macro - Economic FDI, inflation rate, GDP growth rate and contribution to
Attractiveness service sectors
Financial Attractiveness Real estate rent, support cost, corporate tax rates, labor
cost, wages inflation, cost to start business, tax incentives,
travel cost
Geopolitical Attractiveness Political stability, natural disaster, terrorism, rapes rate,
City Murder rate etc
Industry Maturity Size of industry, presence of major IT & BPO companies,
multilingual capability, key services, industry specific
services and focus
Human Resource Size of workforce, university graduates output, attrition
Attractiveness rate, scalability, sustainability, language proficiency
Infrastructure Attractiveness Number of ISPs, personnel computers, Internet users,
Fixed Internet subscribers, number of IT parks and SEZs,
airline connectivity, road infrastructure, power supply
Business Environment Procedures Required to Start a Business, Time Required
Attractiveness to Start a Business, Procedures Required to Register a
Property, Time Required to Register a Property, Procedures
Required to Enforce a Contract, Time Required to Enforce
a Contract, Lodging availability, Hotel Room Occupancy
Rates, Cultural compatibility for expats, Cost of Living,
Risk & safety for expats, Environmental Pollution levels,
Ease of travel such as frequency of flight and travel times
to U.S, Europe, Australia, Japan etc
Risk Overview Security, Political, Government, Legal & regulatory,
Macroeconomic, Foreign trade & payments, Financial, Tax
policy, Labor market, Infrastructure


The Top 100 Cities
17
The following is the list of cities covered in this report under respective
regions:
Global Cities Coverage
APAC: EMEA: AMERICA:
1. Bacolod City 1. Alexandria 1. Barranquilla
2. Bangalore 2. Amman 2. Brasília
3. Bangkok 3. Belgrade 3. Buenos Aires
4. Beijing 4. Bratislava 4. Calgary
5. Bhubaneswar 5. Brno 5. Cali
6. Chandigarh 6. Bucharest 6. Campinas
7. Chengdu 7. Budapest 7. Cordoba
8. Chennai 8. Cairo 8. Curitiba
9. Coimbatore 9. Cape Town 9. Guadalajara
10. Colombo 10. Casablanca 10. Guatemala City
11. Dalian 11. Dubai 11. Kingston
12. Davao 12. Dublin 12. Lima
13. Delhi NCR 13. Durban 13. Managua
14. Guangzhou 14. Irbid 14. Medellin
15. Hangzhou 15. Jerusalem 15. Mexico City
16. Hanoi 16. Johannesburg 16. Monterrey
17. Ho Chi Minh City 17. Kharkov 17. Montevideo
18. Hyderabad 18. Kiev 18. Queretaro
19. Jaipur 19. Kosice 19. Rio De Janeiro
20. Jakarta 20. Krakow 20. San Jose
21. Jinan 21. Ljubljana 21. San Pedro de Sula
22. Johor CyberPort 22. Lodz 22. San Salvador
23. Kabul 23. Lusaka 23. Santiago
24. Klang Valley 24. Lviv 24. Sao Paulo
25. Kolkata 25. Minsk 25. Toronto
26. Metro Cebu 26. Moscow 26. Valparaíso
27. Metro Manila 27. Nairobi
28. Mumbai 28. Nizhniy Novgorod
29. Nanjing 29. Novosibirsk
30. Pasig City 30. Port Louis
31. Penang Cybercity 31. Poznan
32. Pune 32. Prague
33. Shanghai 33. Riga
34. Shenzhen 34. Sofia
35. Thiruvananthapuram 35. St. Petersburg
36. Xian 36. Tallinn
37. Valletta
38. Vilnius
39. Warsaw


18

Country Snapshot :
APAc
Cities in this region continue to offer the highest cost saving among all the outsourcing
destinations covered in this report. The average ITO and BPO salaries in APAC cities
are much lower compared to wages in Latin America and EMEA region. The universities
and colleges generate a large, qualified labor force that is highly scalable to meet the
demands of the industry. The skill sets of the labor pool available in the region are
well suited to support BPO and ITO services including knowledge services. One of the
barriers is the cultural and time zone difference with the western countries.
The United States, Western Europe, United Kingdom,
and Japan are the key demand markets. The
United States accounts for approximately 70
percent of the total outsourcing revenue
of the region while Chinese cities such
as Dalian, Beijing, and Shanghai
focus on the Japanese market
due to the lingual capability and
proximity. It is estimated
that around 60 percent of
the Chinese o u t s o u r c i n g
revenue is from the Japanese
market. While the region’s focus
has been on the U.S. market, the
suppliers in the region are gradually
diversifying their risk by focusing on other
demand markets such as continental Europe
and United Kingdom. This has been evident in the
changing revenue mix of the region over the last few years.
The APAC outsourcing business is dominated mainly by banking, financial services,
insurance (BFSI), and telecommunication sectors. It is also forecast that the BPO market
size in Asia Pacific will reach 17.47 billion by end of 2015 with a growth rate of 15% in
the emerging countries such as India, China, and South Korea.


The Top 100 Cities
19

Country Snapshot :

eMeA
The EMEA region has seen a surge in outsourcing activity traction in the last few years.
This traction is attributed to multiple reasons. Cultural and geographic proximity to
European markets, availability of relatively low cost skilled workforce in regions like
Eastern Europe, Russia, and North Africa, and most importantly, a sizeable workforce
that can meet and support the multi-lingual requirements of global organizations are the
key drivers for outsourcing traction in the region.
The region has a highly efficient school system that adds thousands of skilled labor
every year to its workforce. Focus on advanced science and engineering, specifically in
Russia and Eastern Europe has led to the creation of global centers of engineering and
technology excellence in this region. They have a huge technical potential because of
their level of western world comprehension bolstered by their educational system.
Middle East has been a source of attraction for the outsourcing industry in the
recent past. North African locations like Casablanca and Cairo offer excellent multi-
lingual skills at low cost. North and East Coast Africa have good telecommunications
connectivity and thus more traction is seen in these regions within Africa.
MENA region is expected to witness a CAGR of 8% during the forecast period of 2009-
2016; even UAE outsourcing market will record a CAGR of 10% during the same period.


20

Country Snapshot :
Latin
America
Presence of huge Spanish speaking population in the U.S. and Latin America has led
to the growth of Central and Latam region’s outsourcing industry. With sizeable and
moderately scalable bi-lingual population along with skill sets to support few European
languages, the Central and Latam region has captured a prominent space in the global
outsourcing landscape. Positioned in a similar time zone and geographically close to the

U.S. market has made Central and Latam region the most favored nearshore destination
for the U.S. Central and Latam region is unique in terms of its cultural orientation. Being
close to the U.S. and with large historic European settlements, the region is culturally
oriented to both the demand markets.
Similar time zone is another advantage that cities in Central and Latin America
possess in the global outsourcing market. Due to geographic proximity, travel time to
Central and Latin American cities from the U.S. is very less when compared to offshore
locations. One of the main advantages of Central and Latin America is the ability to offer
real-time services.
Outsourcing in Latin America is the fastest growing region in the world. The BPO
market size in Latin America is forecasted to reach US$ 18 billion by 2012, which
contributes to about 4% of the global BPO market.

The Top 100 Cities
21

City Profile
Dalian

D
alian is known as the ‘Model City’ of Chi-
Country China
na, and a showcase of how China is at-
Population 6.2 Million
tempting to transform from being just a
low cost producer to a high technology, knowledge Annual Graduate Pool 94,500
based economy. Located in the North Eastern corner IT Labor Pool Size 95,700
of China, its geographical proximity to Japan and cul- BPO Labor Pool Size 38,500
tural affinity have resulted in the city cornering most
of the Japanese market for outsourcing. 80 percent of Call Center (Japanese,
Dalian’s software exports are destined to Japan. Hav- Korean, Chinese),
Embedded Software,
ing cornered this market, Dalian in the past few years
Key Services Engineering Services, F&A
has been looking to the West, primarily the U.S. and BPO, IT Services, Systems
European markets to make inroads in the outsourcing Integration, Technical
sector. Helpdesk

The city’s combined IT and BPO projected rev- Current Future
enue in 2010 was US 3.9 billion, with exports of US Attractiveness Attractiveness
842 million, accounting for one-third of the country’s
outsourcing revenue. It is anticipated that both the
IT and BPO industry in the city will grow at over 35
percent annually for the next three years.

Dalian is home to approximately 300 scientific
research institutions that produce 94,500 graduates
and 25,000 technical graduates annually with an ad-
ditional 8,600 students with reasonable Japanese-lan-
guage skills. Currently, the city employs approximate-
ly 95, 700 in the IT industry. The Dalian Institute
of Foreign Languages provides training in English,
Japanese, Korean and other foreign languages to ca-
ter to the requirements of the call center industry.
Neusoft Institute of Information Technology is one
of China’s largest IT institutes. Despite the presence
of these and other institutes, Dalian faces challenges
in access to labor supply due to the rapid growth it is
witnessing.


22
City Profile

Bogota

B
aogotá, considered a rising star in Latin Amer- Country Colombia
ica for services offshoring is the commercial
Population 7.8 Million
and cultural capital of Colombia. Once per-
Annual Graduate Pool 67,000
ceived to be unsafe, the country has, in recent years
IT Labor Pool Size 20,000
transformed itself as one of the best locations to do
business in Latin America, ranking higher than coun- BPO Labor Pool Size 35,000
tries such as Brazil, Chile, and Mexico.
Contact Center (Spanish,
Key Services
Bogotá has a good educational system that produc- Limited English), IT Services
es qualified talent to meet the demands of the grow-
ing industry for various business activities related Current Future
to offshore services. The city is home to more than Attractiveness Attractiveness

107 higher educational institutions that produce ap-
proximately 67,000 graduates every year, of which,
17,000 are technical graduates. At present, the BPO
and IT industry in the city has a combined work-
force of 50,000, of which approximately 80 percent
is employed in servicing the domestic market and 20
percent services the export oriented markets, primar-
ily across Latin America and Spain followed by the
United States.

80 percent of Colombia’s contact center indus-
try is located in Bogotá and generates 60 percent of
the overall revenue. Bogotá’s outsourcing revenue in
2010 was about USD 582.162 Million, of which 82
Million is from exports.

Bogotá is well suited for setting up contact center
operations to service the Spanish speaking markets in
the United States, Spain, and Latin America.


The Top 100 Cities
23

City Profile
Cairo

T
he city of Cairo is the educational hub of
Country Egypt
Egypt as well as for MENA (Middle East and
Population 17 Million
North Africa) region. The government is ea-
ger to attract and support foreign investments to de- Annual Graduate Pool 30,000
velop the ICT sector and provides several incentives IT Labor Pool Size 28,400
to investors. Incentives include beneficial purchase BPO Labor Pool Size 11,600
options for municipally owned land and tax exemp-
tions to companies setting up operations. Embedded Software
, IT Services, Medical
The recent event in Egypt doesn’t stop the growth Transcription, Multilingual
Key Services
Call Center, Product
of outsourcing industry in Cairo. Example: - Teleper- Development, Software
formance has no intention to reduce its investment in Testing
the country; instead the company increases its man-
power from 1,100 in January 2011 to 1,700 in May Current Future
2011. Attractiveness Attractiveness

Cairo serves not only the Middle East and Afri-
can markets but is increasingly becoming a hub for
serving the IT and BPO requirements for European
countries such as Spain, United Kingdom, etc. A key
enabler is the availability of a multi-lingual skilled
workforce fluent in Arabic, English, Spanish, Ger-
man, and French. It is estimated that the IT and BPO
sectors employ 40,000 people at present.
The government is also developing a BPO Park at
Cairo international airport is the second busiest Maadi in the south-east of Cairo, which is going to
airport in Africa with air connectivity to various parts be operationally ready 2012.
of the world. The government is investing heavily to
upgrade the existing telecommunication systems and Application development, testing and technical
power supply to keep pace with the growing demand. support, product development, contact center ser-
vices, and medical transcription are the main services
The Smart Village, a public-private investment being outsourced from Cairo.
partnership was set up in 2001 to attract investment
and serve as a cluster for IT and business services. Cairo is well positioned to grow as an important
Several multinationals have already set up their cap- global sourcing destination for serving the MENA as
tives and global delivery centers in the Smart Village. well as European and U.S. markets.


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

Why Jordan?
• Jordan also possesses with high quality residential
a modern and progressive developments, and a vast
society. Jordan is known for array of dining entertainment
its economic and political and leisure opportunities for
stability, and for a multi- residents, workers, visitors and
• True Public-private partner-
cultural society, marking it as tourists
ship: A model that has been
an attractive destination for
• Irbid Development Area:
proven to be a success; The
foreign nationals to work and
Located in Jordan’s fertile north
Government and the private
reside adjacent to the kingdom’s
sector have committed to
developing the required infra- • Two cities; Amman and leading scientific institutions
structure, attractive incen- Irbid have emerged as the and one of the Middle East’s
tives and training initiatives to outsourcing Cities due to
foremost ICT and health care
ensure a constant supply of the strong infrastructure and
universities, and stretched over
skilled manpower talented workforce: a 3.2 km2 area, 20Km east of
• A central location to support • Business Park Development Irbid city and 80km north of
a regional hub and spoken Area in Amman-Dabouq: the Jordanian capital Amman
delivery model; with many
businesses looking to expand
beyond the traditional markets,
Jordan offers a unique market
to tap to the growing MENA
region. At a short flying distance
from the GCC countries, North
Africa, Central Asia, and Europe,
Jordan provides an easily
accessible location from which
to support multiple regions
• Jordanian companies now
have CMMI and SPOT certifi-
cations; Certificates that are
the best internationally and
are considered an asset to any
Located in an outstanding • Time Zone: 2-3 hours
company
city location on Amman’s ahead of Greenwich timing
• A young, growing, and in Winter and Summer times
main corridor with quick
educated talent pool providing respectively. Countries with-
access to all city amenities,
a good source of man power Business Park Development in one time zone include
• Investor-friendly regula- Area is destined to become those in Eastern Europe and
tions that do not require local a sustainable and enduring GCC countries
business partners, Jordan does mixed-use city district that • Population: 6.5 Million
not have any foreign owner- will provide future growth and • For more information
ship/repatriations restrictions development for Amman and on Jordan's country profile
or localization policies thus Jordan. It offers international
please log on to
giving flexibility standard office environments http://tiny.cc/0ptth
Advertorial
Advertorial

www.globalservicesmedia.com Destinations Compendium 2011

• European Free Trade
Association: Entered into force in
January 2002, it aims at setting
up a fully operational free trade
area over a period of 120 years
• AGADIR: Entered into force
on July 6 2006, the agreement
allows for diagonal accumula-
tion of origin amongst its mem- • Roads: Jordan has a well
ber countries developed road network allow-
• Joining the GCC council ing quick access to all its terri-
Stable environment, trade membership is in negotiation tory
linkageS & agreementS • Electric Energy: Reliable and
phase amongst others
• Sound macroeconomic competitively priced, electric-
management, prudent fis- general infraStructure
ity in Jordan is generated by
cal and monetary policies and • Three Airports: Queen Alia
sustained structural reforms the Jordanian Electric Power
International Airport (Amman)
including legislative, regulatory, which was recently expanded Company (JEPCO). Government
and judicial reforms have posi- to serve 9 million passengers. direction is also geared towards
tioned Jordan as an ideal base increasing the use of renewable
for export-led growth to region- energy sources
al and international markets
• The Kingdom consistently education & Workforce
ranks among the safest loca- • Named as the MENA region’s
tions for business in the world top performer in the field of edu-
and among Arab nations, in par- cation reform, Jordan has been
ticular
• Jordan is committed to
freedom of expression and
choice. Measured by the Annual
Freedom House Survey, Jordan
ranks fourth in the region
• An array of international
trade agreements for foreign
direct investment and export:
• USA-JUSFTA: Has been in
force since 2001. It was the first
free trade agreement negoti- pushing towards attaining highest
ated by the US with an Arab King Hussein International international standards of quality
country, and the fourth with any • Jordan has a literacy rate of
Airport (Aqaba) and Amman
country in the world 91%
• GAFTA: Establishment of the Civil Airport at Marka for mostly
domestic and nearby interna- • 70% of the population age
Arab free trade zone by January
tional routes demographic is under the age
2005
• Seaport: The Gulf of Aqaba of 30, denoting a youthful pop-
• Jordan –EU Association Agree-
ment: Came into force in 2002, ulation, ideally suited for ITO
on the Red Sea is deep water
the agreement aims at creating and BPO jobs
harbor which offers facilities for
a free trade agreement by end • Females comprise 51% in
general cargo, containerized
of 2010 under graduate studies
cargo and specialized cargo • 26 state and private accred-
• Singapore: Signed in May
2004; The agreement aims at • Railroad: There is a new rail- ited universities
the gradual elimination of cus- way master plan to improve and • Over 40 institutions produc-
tom duties over a period of 10 increase the existing 620 km ing highly skilled technicians
years long rail network
Advertorial


• Today, more than 29,000 for- tious initiative led by Majesty
eign students are enrolled in King Abdullah was launched,
Jordanian Universities creating development zones
• Areas of study with the high- across the Kingdom that pro-
est enrollment include Business vide investors with a globally
Administration, Engineering, competitive combination of
Computer Sciences, Humanities, location, infrastructure, and
Education and Teacher Training, services and labor. The DFZC’s
and Medical Services vision supported by a highly
• Jordan’s workforce is regard- qualified team that works in • The National ICT strategy
ed as one of the most qualified, partnership with the develop- serves 2 basic goals. First, it
competitive and productive in ment zones master developers; identifies the ICT sub-sectors
the region charged with managing the best-suited for growth given
• Jordan’s labor rates are con- buildings, development and
the environment in Jordan.
siderably cheaper than those operation of the zones. To date,
Thus, the strategy challenge to
in other countries in the Middle six development zones are
which the private sector in the
East currently operational, offering
country must respond. Second,
• Labor force specialties diversified investment opportu-
it defines actions the govern-
include: information technol- nities that build on each zone’s
ment must take to do its part to
ogy, engineering services, travel competitive advantage
and tourism, textile production, facilitate ICT sector growth
• benefits to foreign inves-
natural resource extraction, tors: • As a result of implement-
pharmaceuticals and light man- • Foreign ownership 100% ing these strategies, annual
ufacturing • Foreign employment ICT sector revenues increased
• One Stop Shop: One-Stop by an average of 25% yea-on-
commitment to year over the past few years
inveStorS’ SucceSS Shop services to streamline
and ease the process of estab- and generated income repre-
lishing an operation within the senting approximately 14%
Business Park. Investors will of the country’s GDP, adding
be able to avail of these fast over 15,000 jobs directly to
track facilities for all services the economy and more than
ranging from Registration to 80,000 jobs overall whether
Licensing, Visas and Customs direct, indirect or induced
formalities • Jordanian telecoms have
• Tax and free related incen- invested over USD 400 million
tives and exemptions in recent years in a number of
• Jordan Investment Board:
• Exemption from sales tax technology solutions designed
A government institution
and custom duties to make Jordan more acces-
committed to working with
the private sector to promote • As a result, Foreign Direct sible to the rest of the world
Jordan for its unique and busi- Investment (FDI) surged from • Opportunities in Jordan’s tel-
ness friendly environment and USD 937 million in 2004 to ecom revenue reached USD 3.1
diverse investment opportuni- around USD 2.4 billion in 2009 billion, up from USD 673 million
ties. The JIB presents state of the ict in 2001
art services for facilitating reg- • In response to a challenge
istration and licensing proce- put forward by His Majesty in
dures for projects, and offers all 1999, the efforts were direct-
possible simplified procedures ed at devising a comprehen-
for investment sive framework for Jordan’s ICT
• Development and Free sector, which resulted in many
Zones Commission: An ambi- strategies
Advertorial


Shared ServiceS center:
outSourcing: • Alongside lower costs, western • With its strategic location as a
Jordan specialties in outsourcing
style legal system, strong IPR laws and gateway into the MENA region, its
lies in: a business friendly climate, Jordan has good international connectivity, lower
been positioned as an important IT costs, and world class infrastructure,
buSineSS ProceSS outsourcing destination Jordan can be the ideal destination for
outSourcing (bPo):
• Many multinationals as well as shared services centers
• BPO requires expertise in key local firms have capitalized ion Jordan’s • As a BPO hub for MENA region,
business functions like finance and rich source of talent and aptitude for Jordan can be the decisive choice for
accounting, human resources, claims sophisticated IT skills by establishing establishing regional headquarters and
processing, and customer relationship outsourcing operations shared services infrastructure
manager
• Current capabilities in Jordan range
• With its higher literacy rate, lower from outsourced software development • A supportive government and
cost, and highly trainable ICT savvy best in class incentives offer an ideal
and testing to remote infrastructure launch pad for multinationals that can
workforce, Jordan is ideally suited to management to providing technical
provide such services leverage Jordan’s strong workforce and
assistance on sophisticate products
cost to their advantage to further their
• Jordan’s familarity with the • Leading tech companies such as global diversification strategy
American, British, Asian, as well Cisco, Microsoft, Oracle, HP, Google
as Middle East business practices and others have established centers contact centerS:
positions it well to serve all continents of excellence in Jordan to tap into the • Jordan has a natural affinity
• Global service providers have been country’s ICT advantage to become a strong contact center
active in Jordan and are using it as a outsourcing hub owing to a highly
knoWledge ProceSS
base to serve its regional as well as service oriented economy, a
global clients outSourcing (kPo):
competitive cost structure, a young
• Sectors with good potential for • Knowledge based services require workforce and familiarity with both the
outsourcing business processes to qualified labor force with specific Western and Regional cultures
Jordan include banking, insurance, expertise, advance knowledge,
analytical interpretation, and technical • With a relatively neutral English
healthcare, telecom, hospitality and and Arabic accents, Jordan is fast
technology skills
emerging as the most viable contact
• Jordan with its vast skilled labor center destination in the region
information technology pool will provide quick time to market
outSourcing (ito): solutions for any organization and • Several outsourcing providers
• Jordan enjoys a high level of ICT guarantees a continuous flow of operate out of Jordan, offering services
penetration rate and a large number support that will ensure continuous to the US, UK and the Middle East
of ICT graduates with a strong industry success for all current and future ranging from customer support, pre
focused skills business sales and loyalty management to
• In fact Jordan has been a source of IT • Some of the key KPO services that technical and helpdesk support
talent for major local and multinational can be delivered from Jordan include • Besides Amman a new contact
companies in the Middle East and is financial analytics, technical research, center hub is emerging in Irbid to
widely recognized as possessing the Middle East specific market and business service growing demand for cost
strongest ICT workforce in the region research functions to name the least effective and talented agents

Jordan believeS itS outSourcing StrengthS lie in:
• financial services: Jordan’s banking and financial industry system is among the strongest and most developed among
all Middle East emerging markets. Internationally recognized firms have emerged in Jordan to provide specialized F&A
services for regional and global companies
• engineering services: Jordan produces high caliber engineering talent by virtue of its highly recognized and prestigious
educational system
• healthcare and pharmaceuticals: The Jordanian government is committed to promoting the life-sciences industry as
one of the new growth areas in the country
• information and communications technology: Jordan’s vibrant ICT sector is the result of a fully liberalized market and
a thriving private sector. The ICT industry has increasingly become the engine of growth for Jordan’s economy
• energy and renewable energy: Jordan is ripe to emerge as a Clean Technology hub within the MENA region. Strong
solar irradiance, robust electric infrastructure, abundant engineering talent, and moderate labor costs are particularly
conducive to growth in the solar
contact:
• For more information and statistics : Int@j: Tel: +962 6 5152322, info@intaj.net, www.intaj.net
• For more information and statistics on Jordan's country profile, please log on to http://tiny.cc/0ptth
• For more information and statistics on Jordan's outsourcing profile please log on to http://tiny.cc/tvuus
Advertorial


regional dynamics

n AsiA 30
n EuropE 40
n MiddlE EAst & AfricA 45
n lAtin AMEricA 50
n north AMEricA 59

30

Asia - Balancing the Weight
of the Western World

Sourabh Chandra Pushp

T he dynamics between various
Asian outsourcing locations
could best be characterized as the war
multinational companies now look to
BPO far more as a means to reduce costs
for business operations. The outlook
for BPO destinations. Apart from India, for Asia/Pacific's BPO market remains
which has major scale in both IT and positive, with growth in 2011 expected
BPO, the rest of Asia is more of a BPO to be 17.9 percent in terms of U.S.
story. Dollars. ”
The outlook for Asia/Pacific's BPO The presence of multiple city options
market remains positive, with growth with significantly different character-
in 2011 expected to be 17.9 percent istics drives complexity in location
in terms of U.S. Dollars. According to selection decisions in Asia. There is a
the latest Gartner research, the world- significant diversity in the evaluation
wide BPO market is forecast to grow of the top Asian players. India, with
by 6.3 per cent globally and 17.9 per its early-mover advantage, is able to
cent in the Asia-Pacific during the
year 2011. The study titled, Market
Overview: BPO Service Providers in
Country Marketplaces in Asia-Pacific
and Japan,2010-2011, states that the
BPO industry will grow to $1.69 billion
by 2012 and $2.47 billion by 2014.
H Karthik, research vice-president at
Everest Research, said: "Emerging mar-
kets are faring far better and, generally,


31

“ The potential demand for Chinese
services is very strong due to three
important factors besides simple
“ Even companies in developing
countries are looking to outsource
BPO work. There is also a lot of de-
“ Virtualisation, consolidation, and
managed services that focus on ROI
in the short term will drive opportu-
labor arbitrage: risk diversification mand for re-engineering processes nities in the market. Emerging Asian
across multiple low-cost locations, with efficiency becoming the norm. enterprises across multiple industries
China’s potential labor pool, and the The emergence of newer verticals will continue to accelerate services
attractiveness of China as a huge de- will also be growth drivers. spending in their efforts to challenge
mand source for global products and existing global MNCs.
services.
— Aparup Sengupta — Som Mittal — Roopa Kudva
CEO & MD, Aegis. President, NASSCOM MD and CEO, CRISIL

provide manpower for all type of off- Sakshi Garg, Senior Research Analyst,
shoring activities. The Philippines' long Everest Group, adds, “India has retained
established tradition of providing lead- its’ position as the leading global shor-
ing call-center support continues to be ing destination with a 55 per cent share
strong. China provides competitively of global ITO and BPO market in 2010.
priced high-end analytics and engineer- Early-mover advantage in the outsourc-
ing, while Malaysia attracts IT services ing industry and critical mass has made
offshoring. India the most attractive global location
Companies in Japan and South Korea for companies looking at outsourcing.”
are looking at China to offshore their She further adds, “ There are a number
IT/BPO processes-while operations in of considerations in terms of identifying
Singapore are considering their neigh- a particular country as a favorable out-
boring Malaysia as an attractive alter- sourcing destination, besides, the very
native. Australian companies are mov- obvious cost related advantages, some
ing their IT/BPO processes within the of the other considerations include:
region to Indian and Philippines. availability of skilled manpower,


32

competitiveness of suppliers/service IT Spend IS GrowInG AcroSS The
providers, language proficiency, govern- reGIon
ment support, educational system and The market in Asia for IT purchases
infrastructure.” is growing considerably. Research firm,
In another report on BPO trends Forrester expects growth to accelerate
in the Asia-Pacific region, excluding over the next few years. According to
Japan, research house IDC forecasts Forrester, the Asia Pacific economies
the market to rise to US$15 billion by may not have the fastest growth in
2011, recording a compound annual nominal GDP in 2011, but overall, IT
growth rate (CAGR) of 16 percent. In purchases in Asia will grow by 8% in
support to this, research firm Ovum, 2011 and 9% in 2012 with Japan’s slow-
predicts- Asia-Pacific's BPO market er growth dragging the regional growth
will reach revenues of US$17.47 bil- rate down. In terms of the fastest-grow-
lion in 2015, a CAGR of 9.3 per cent ing countries in the top 15 IT markets
from the US$11.18 billion it hit in (in local currencies), Brazil and China
2010, predicts Ovum. will have the fastest growth at 15% and


33

12%, respectively. India scores next at destination. While the cost advantage
around 9%. Asian economies occupy is unparalleled, India has the world’s
four of the top five fastest-growing econ- largest pool of employable talent, serv-
omies in relation to IT spend. ice delivery infrastructure across multi-
ple geographically dispersed locations
chIneSe drAGon vS. IndIAn Bpo within the country, and a supportive
India has retained its position as the policy regime.
leading global shoring destination with China, India's immediate neighbor
a 55 per cent share of global ITO and and major competitor in the region,
views Indian provider growth as a major
threat diplomatically. Contrary to its
earlier positioning as a competitor to
India, China is now hailed as being sup-
plementary to India. China rules the
manufacturing outsourcing space and
is undoubtedly leagues ahead of any
other nation but, when the conversa-
BPO market in 2010. India with its first- tion turns to service outsourcing India
mover advantage and deep skill base certainly is reckoned the leader. In fact,
remains the unquestioned leader in the the Indian growth rate in the sourcing
Asian-regional dynamics. The fact that space is expected to surpass China by
India has a vast workforce and talent 2015 significantly.
pool that is eager to walk the extra mile, There is significant buzz in the mar-
has made them a powerful outsourcing ket that China has the potential to also

“ On the supply side, China faces many seri-
ous challenges such as Intellectual Property
(IP) and data security concerns and the em-
ployability of the workforce, which threaten
fundamental growth. The Chinese govern-
ment and suppliers are implementing new
measures, however, to address these con-
cerns.
— Liu Jiren, Chairman and
CEO, Neusoft Group


34

become a leading sourcing destination BPO services. According to him, a gen-
for services. Although the BPO industry eration of English-speaking Chinese
in China is yet to attain the maturity will surface in four years from now,
witnessed in India, there is more than as they have really toiled hard during
enough reason to believe the Chinese the last one decade to progress on this.
dragon is inching towards that desired Although Aegis does not have a pres-
level of maturity and it surely poses a ence in China till now, the company is
significant threat to the Indian suprem- currently considering setting up centers
acy. 2009-10 data reflects a growth of in that country.
21% in the Chinese outsourcing indus- India has been a pioneer in provid-
try with a value of $23.6 billion. While ing outsourcing solutions and a range
India still remains the most preferred of outsourcing services to countries
outsourcing destination for companies across the globe. Outsourcing to India
in the West, the scenario is different can help achieve all the above stated
in the Asia-Pacific region. Most com- benefits. The kind of trust and faith
panies in these regions prefer to send that companies enjoy with Indian pro-
their work to China primarily due to viders is a gradual process; to break
low employee costs. Hence, there is this faith is the real challenge for
no doubt that China is fast emerg- China. Following are some of the prom-
ing as a major outsourcing destination inent reasons why companies choose
worldwide. to outsource to India and may be what
Aegis-CEO, Aparup Sengupta is of the China needs to concentrate on in addi-
view that China will overcome India as tion to creating a favorable market
an appealing destination for non-voice environment.

“ Forecasts indicate that most economies will
experience a decline in GDP growth next year,
with countries in Western Europe and North
America growing at the slowest rates and the
Asia-Pacific region continuing to outperform
all others. Despite the global setback, howev-
er, spending on IT software and services next
year is set to increase over levels recorded in
2010.
— Blanca Trevino, CEO, Softtek


35

IndIA AdvAnTAGe conTInueS The phIlIppIneS
• Cost-Effective Services: The number The Philippines has become one of
one reason global organizations out- the most preferred offshore destina-
source to India is their cost-effective tion for call center outsourcing, spe-
services. Outsourcing to India can cializing in customer support services.
help you save more than half of your Like Indians, Filipinos also have a high
operating costs. Having a large techni- level of English proficiency and strong
cally skilled labor pool has enabled customer orientation. The Philippines
India to provide cost-effective serv- have not been fueled only by traditional
ices without compromising on qual-
ity. Outsourcing to India can help you
save on your operating costs while
increasing your productivity, qual-
ity and efficiency. Replacing Indian
dominance in the IT services space
seems to be unthinkable.
• high-Quality Services: Outsourcing
to India is not just a cost saving play,
it's transformed into an all round sat-
isfying experience that saves money low-value-added call centers, but by
and makes the process more robust higher-end outsourcing. Even though
and standardized. Quality and process call centers still dominate the sector,
excellence initiatives like Six Sigma, the Philippines has started capitalizing
Lean, and others have been embed- on its non-voice processes.
ded in the offerings by all promi-
nent Indian providers. India has TAkInG AdvAnTAGe of The
proved it is technically superior when phIlIppIneS
compared to other offshore countries Many cities in the Philippines includ-
providing outsourcing solutions. The ing Manila and Cebu have the infrastruc-
Chinese propose to move in the same ture, the talent, and the government
direction, but it's a path the Indians support needed to maintain successful
have pioneered. call centers. In addition, the caliber of
• Other advantages: Vast talent pool, people and the level of language profi-
scale, language, process maturity, ciency in these parts of the Philippines
government stability, good and qual- are equal if not superior to most of the
ity excellence certification. current offshore locations.


36

The Philippines are a prime loca- According to Marife Zamora, Managing
tion for BPO services because the work Director -Asia Pacific, Convergys, “As
can be spread around smaller cities in the BPO market evolves, expect 90% of
various provinces around the country future Philippines-BPO opportunity to
which are extremely inexpensive in derive from non-voice BPO functions.
terms of both human capital and infra- BPO revenue in the Philippines has
structure. Both Manila and Cebu are top grown to over $8 billion, almost 50%
tier cities for BPO and software devel- over the last four years, with projections
opment, but it is still the early stage of showing them overtaking India as the
the industry. BPO leader sometime within the next
The offshore outsourcing industry in 18 months.”
the Philippines is now estimated to be
growing at about 30% and will reach whAT MAkeS The phIlIppIneS The
$25 billion in 2012. Initially the focus preferred Bpo deSTInATIon?
was on call centers and low value added First, there is great language advan-
BPO, however growth over the last few tage. A huge chunk of the Philippine
years has centered on higher value population is literate in English. The
activities such as web design, software education system, public and private,
development, animation, legal services, uses the English language as a medium
medical transcription etc.. While voice- of instruction. Filipinos, even when
based services constitute a bulk of the untrained, have a good grasp of the lan-
BPO market currently, non-voice and guage. Moreover, more Filipinos can be
back-office processes contribute 90% to easily trained to speak with an American
the future market opportunity. accent or any accent the client prefers.

“ Success in voice-based BPO services has
made the Philippines the second larg-
est low-cost BPO destination after India.
Clients are now saying that there are cer-
tain kinds of processes they want done out
of the Philippines and some that they want
back in India.
— Keshav R. Murugesh, CEO, WNS


37

Most Filipinos can commu-
nicate well, written or oral,
in the English language, and
can be trained to do better.
The Philippines also has a
vast human resource talent
pool that can be tapped for
various services. Aside from
the widely growing number
of qualified call center
agents, a lot of Filipinos are
already skilled and trained
or trainable to provide medi-
cal transcription services,
legal services, SEO and web
development services, soft-
ware development, virtual
assistance, and other such services. range of its closest competitors in the
There is still a widely untapped pool of BPO industry. Aside from the capital
talents in the Philippines which can be Metro Manila, many other cities in the
utilized via outsourcing. country such as Davao City, Baguio,
Another important edge of the and Cebu offer a vast pool of talent, and
Philippines in terms of outsourcing is affordable office space.
the country and its people’s familiar- Finally, the government is very much
ity and affinity for American (US) laws supportive is providing infrastruc-
and culture. The Filipinos, most having ture and money to developing human
relatives or friends based in the US, and resources through education and train-
being exposed to US mass media for a ing. There is also focus on improving
long time, are very much well-versed in telecommunications infrastructure in
US laws, situations, environment, and order to encourage businesses to invest
culture. in the country’s BPO industry.
The Philippines, comparatively speak- Success in voice-based BPO services
ing, offers affordable human resources has made the Philippines the second larg-
and office space. Furthermore, the cost est low-cost BPO destination after India.
of operations in the Philippines is very A number of companies are already
much affordable and well within the leveraging the Philippines for a wide


Destinations Compendium 2011

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a Destinations Compendium 2011

Semelhante a Destinations Compendium 2011 (20)

Mais de Niketa Chauhan

Mais de Niketa Chauhan (17)

Último

Último (20)

Destinations Compendium 2011