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ShareBangalore: India has retained its top position on the advisory firm Global Services-Tholons ranking of the world's top outsourcing nations.
Six cities -- Bangalore, Delhi NCR, Mumbai, Chennai, Hyderabad and Pune -- are the favourite offshore destinations for global outsourcers, according to the fourth Global Services-Tholons Top 50 emerging outsourcing destinations survey.
India topped the list with revenues of $40 billion from export of information technology-business process outsourcing (IT-BPO) services in 2008. Its closest rival Philippines increased outsourcing revenues by 25% to $6 billion in the same year. The two nations were followed by Ireland, China and Brazil.
According to the study, India also grabbed the top slot in terms of foreign direct investment (FDI) inflows into the country. It had the highest FDI in the IT-BPO sector in 2008 at $46 billion, a jump of 46% from the previous year, even as global FDI flows decreased from $1.9 trillion to $1.7 trillion and several developing economies struggled to acquire investments from client nations.
Avinash Vashistha, CEO of Tholons, said it is not just cost arbitrage that is bringing in funds into the country "For a CIO (chief information officer) today, finding a centre of excellence is more than just to lower cost. It must consider location, risk mitigation for business, cultural affinity and scalability of the skilled workforce," he said.
"The service providers need to think through their offerings so as to differentiate as the competitive advantage is rapidly vanishing due to a cut-throat competition and market saturation."
Besides the top six Indian cities, the other cities that have been featured in Global Services-Tholons' survey are Chandigarh, Kolkata, Coimbatore, Jaipur, Bhubaneswar, Thiruvananthapuram. They have made to the list of next 60 outsourcing destinations.
