The list, built around concerns over terrorism, pollution, and geopolitical tensions, includes cities from a range of countries that could otherwise constitute a round-the-world tourism dream: Thailand, Jamaica, South Africa, Brazil, India, Israel, the Philippines, and Colombia. Read on to see if your company's global outsourcing map matches up with this list of the world's10 riskiest locations for outsourcing.
Here are the top 10 as ranked by Brown & Wilson, authors of the annual "Black Book of Outsourcing":
1. Bogota, Colombia
2. Bangkok, Thailand
3. Johannesburg, South Africa
4. Kuala Lumpur, Malaysia
5. Kingston, Jamaica
6. Delhi/Noida/Gurgaon (NCR), India
7. Manila, Philippines
8. Rio do Janeiro, Brazil
9. Mumbai, India
10. Jerusalem, Israel
Tuesday, June 2, 2009
BPO, Outsourcing
8 Indian cities in world's 25 riskiest offshoring locations
Here comes another overseas study and another bout of India-bashing. India may have been hailed for long as the world's top outsourcing destination, but according to a survey in the annual Black Book of Outsourcing, as many as 8 Indian cities are among the world's 25 riskiest places for offshoring.
And what are the reasons for this, according to this study? Mainly, concerns like terrorism, pollution and geopolitical issues, etc. Meanwhile, global management consulting firm A T Kearney says that although India is the world's favoured back-office, the Middle East and the North African region are slowly emerging as promising offshoring destinations because of large, well educated population and proximity to Europe.
Anyway, for whatever the study is worth, here are the eight riskiest offshoring destinations from India.
1. Delhi, Gurgaon, Noida: 6th riskiest in the world
2. Mumbai: 9th riskiest in the world
3. Chandigarh: 15h riskiest in the world
4. Pune: World's 20th riskiest
5. Chennai: 21st riskiest in the world
6. Bangalore: 23rd riskiest
7. Hyderabad: 24th riskiest
8. Kolkata: India's least risky BPO destination
And what are the reasons for this, according to this study? Mainly, concerns like terrorism, pollution and geopolitical issues, etc. Meanwhile, global management consulting firm A T Kearney says that although India is the world's favoured back-office, the Middle East and the North African region are slowly emerging as promising offshoring destinations because of large, well educated population and proximity to Europe.
Anyway, for whatever the study is worth, here are the eight riskiest offshoring destinations from India.
1. Delhi, Gurgaon, Noida: 6th riskiest in the world
2. Mumbai: 9th riskiest in the world
3. Chandigarh: 15h riskiest in the world
4. Pune: World's 20th riskiest
5. Chennai: 21st riskiest in the world
6. Bangalore: 23rd riskiest
7. Hyderabad: 24th riskiest
8. Kolkata: India's least risky BPO destination
BPO
World's top BPO destinations
Which are the hottest countries for outsourcing? The question might sound a bit ill-timed with the US financial crisis weighing heavily on BPOs. However, while US financial crisis may cause some short-term pains to BPOs worldwide, it is also believed that the crisis may accelerate global sourcing adoption as financial institutions push the envelope on offshoring to cut costs.
Similarly, analysts also feel that outsourcing will get a boost after the US presidential elections. So, again which will be the top destinations to benefit once this work starts flowing globally.
Here's a look at the top global outsourcing destinations as well as the emerging ones according to a recent study by Global Services, a magazine for global outsourcing and BPO industry and Tholons, a global research advisory firm.
India
Yes, India continues to retain its numero uno position as the sought-after destination for companies globally. The country is home to as many as six of the world's top eight outsourcing hubs. The company retains it position amid a determined bid by neighboring China to give tough competition.
The six Indian cities in the list of top eight outsourcing cities of the world are: Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune. The list for top 50 emerging cities for outsourcing includes four Indian cities: Kokata at no. 6th, Chandigrah at no. 12th, Coimbatore at no. 17th and Jaipur at 31st position.
China
Incidentally, China has no representation in the world's top eight outsourcing cities. However, China dominates the list of emerging cities for global outsourcing with Shanghai and Beijing leading the list.
The list of top 50 emerging cities for global outsourcing includes six from China: Shanghai at no. 2, Beijing at no. 3, Shenzen at no. 10, Dalian at no. 16th, Guangzhou at no. 23 and Chengdu at no. 37.
Shenzen and Shanghai are now also offering services like application development and maintenance and business analytics. Consequently, China has become home to numerous IT and BPO service providers such as Accenture, Convergys, Infosys, IBM, TCS, Wipro, Infosys and Unisys having their centres across the country.
While pointing out the Chinese dominance in the outsourcing segment, the study said China's outsourcing industry is set to flourish further with a supportive government and favourable outsourcing conditions.
Ireland
One of the names in the top 8 global outsourcing cities is that of Dublin, Ireland. In recent years Ireland has seen a large no. of outsourcing deals, both in number and size, in relation to the economy.
According to a recent survey by Deloitte, Ireland is being increasingly seen as a location for higher value operations looking for an alternative location, leading to the creation of more skilled jobs.
However, the survey also adds that it is becoming increasingly difficult to sell Ireland as a low-cost offshoring location. Many companies are now choosing to locate higher value operations that can be offshored in Ireland, such as R&D centres.
Philippines
Mataki from Philipines also makes its place in the top 8 global outsourcing cities. Philippines has been trying to position itself as the next major global outsourcing destination, in competition with India and China. The country is aiming to grab a 10 per cent share of the $130 billion global market. Round-the-clock construction work of new office buildings is sweeping across the Philippines.
In fact, the BPO industry in the country is expected to weather the US-led global economic crisis, since much of the services outsourced to the Philippines are operational tasks that companies cannot do without.
Philippines BPO companies have launched a marketing campaign dubbed Experience Excellence, Experience the Philippines to attract more companies to outsource there not just for the quality of service, but also for everything else the Philippines has to offer.
Cities `gone cold'
Six cities from 2007 list failed to make it to the list this year. These include: Perth (Australia), Baguio City (The Philippines), Leeds (UK), Birmingham (UK), Oklahoma City (US) and Juarez (Mexico).
Similarly, analysts also feel that outsourcing will get a boost after the US presidential elections. So, again which will be the top destinations to benefit once this work starts flowing globally.
Here's a look at the top global outsourcing destinations as well as the emerging ones according to a recent study by Global Services, a magazine for global outsourcing and BPO industry and Tholons, a global research advisory firm.
India
Yes, India continues to retain its numero uno position as the sought-after destination for companies globally. The country is home to as many as six of the world's top eight outsourcing hubs. The company retains it position amid a determined bid by neighboring China to give tough competition.
The six Indian cities in the list of top eight outsourcing cities of the world are: Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune. The list for top 50 emerging cities for outsourcing includes four Indian cities: Kokata at no. 6th, Chandigrah at no. 12th, Coimbatore at no. 17th and Jaipur at 31st position.
China
Incidentally, China has no representation in the world's top eight outsourcing cities. However, China dominates the list of emerging cities for global outsourcing with Shanghai and Beijing leading the list.
The list of top 50 emerging cities for global outsourcing includes six from China: Shanghai at no. 2, Beijing at no. 3, Shenzen at no. 10, Dalian at no. 16th, Guangzhou at no. 23 and Chengdu at no. 37.
Shenzen and Shanghai are now also offering services like application development and maintenance and business analytics. Consequently, China has become home to numerous IT and BPO service providers such as Accenture, Convergys, Infosys, IBM, TCS, Wipro, Infosys and Unisys having their centres across the country.
While pointing out the Chinese dominance in the outsourcing segment, the study said China's outsourcing industry is set to flourish further with a supportive government and favourable outsourcing conditions.
Ireland
One of the names in the top 8 global outsourcing cities is that of Dublin, Ireland. In recent years Ireland has seen a large no. of outsourcing deals, both in number and size, in relation to the economy.
According to a recent survey by Deloitte, Ireland is being increasingly seen as a location for higher value operations looking for an alternative location, leading to the creation of more skilled jobs.
However, the survey also adds that it is becoming increasingly difficult to sell Ireland as a low-cost offshoring location. Many companies are now choosing to locate higher value operations that can be offshored in Ireland, such as R&D centres.
Philippines
Mataki from Philipines also makes its place in the top 8 global outsourcing cities. Philippines has been trying to position itself as the next major global outsourcing destination, in competition with India and China. The country is aiming to grab a 10 per cent share of the $130 billion global market. Round-the-clock construction work of new office buildings is sweeping across the Philippines.
In fact, the BPO industry in the country is expected to weather the US-led global economic crisis, since much of the services outsourced to the Philippines are operational tasks that companies cannot do without.
Philippines BPO companies have launched a marketing campaign dubbed Experience Excellence, Experience the Philippines to attract more companies to outsource there not just for the quality of service, but also for everything else the Philippines has to offer.
Cities `gone cold'
Six cities from 2007 list failed to make it to the list this year. These include: Perth (Australia), Baguio City (The Philippines), Leeds (UK), Birmingham (UK), Oklahoma City (US) and Juarez (Mexico).
IT market, TCS
TCS eyes deals in healthcare space
Tata Consultancy Services (TCS), the country’s largest IT services firm, is exploring more avenues in the life sciences and healthcare space as demand from clients gains momentum.
Outsourcing analysts say there are deals worth $300-400 million in the market at various stages of negotiations. Life sciences and healthcare is the sixth-largest vertical for TCS and accounted for 5.2% of the firm’s revenues at the end of fiscal year 2008-09.
TCS provides offerings in the areas of clinical trial data management , pharmacovigilance and medical device design, besides software and solutions to aid drug discovery.
There are multiple small deals ranging between $25-50 million and a couple of $100 million deals by American pharma firms in the market, said an outsourcing analyst.
“The sector has not been impacted so much by the economic slowdown. This presents an opportunity for outsourcing firms,” he said. TCS vice-president and global life sciences and healthcare head Debashis Ghosh said the firm was exploring venturing into claims processing and other knowledge process outsourcing (KPO) work in the healthcare insurance area as well as genome analysis.
Work in the area of genomics, which focuses on determining the entire DNA sequence of an organism, is already on at the firm’s innovation laboratory in Hyderabad. “Genome analysis could help ascertain what diseases a person is prone to and, thus, lead to timely prevention and care,” Ghosh said.
Meanwhile, the software services firm is also seeing strong demand from its traditional clients -- pharma companies and healthcare providers. Ghosh says there is increased pressure on pharma companies to improve R&D productivity as the spectre of patent expiry looms large over them.
One implication of that is pharma companies doing more clinical trials to assess the safety and efficacy of the drug. At the same time, healthcare regulators are becoming more vigilant worldwide. This signifies opportunities in the areas of clinical trial information management and pharmacovigilance for TCS.
While the Indian IT firm largely caters to clients in the US -- the largest healthcare market in the world-- emerging markets in Asia Pacific are also becoming more attractive as pharma companies look to tap these markets. “A lot of work related to electronic medical records and hospital management systems is happening in Asia Pacific,” Ghosh said.
He added that developments such as the Obama government’s re-look at the healthcare insurance system in the US and insurers in the West seeking to linking payments to outcome of treatment at hospitals will also spell growth opportunities for TCS.
Outsourcing analysts say there are deals worth $300-400 million in the market at various stages of negotiations. Life sciences and healthcare is the sixth-largest vertical for TCS and accounted for 5.2% of the firm’s revenues at the end of fiscal year 2008-09.
TCS provides offerings in the areas of clinical trial data management , pharmacovigilance and medical device design, besides software and solutions to aid drug discovery.
There are multiple small deals ranging between $25-50 million and a couple of $100 million deals by American pharma firms in the market, said an outsourcing analyst.
“The sector has not been impacted so much by the economic slowdown. This presents an opportunity for outsourcing firms,” he said. TCS vice-president and global life sciences and healthcare head Debashis Ghosh said the firm was exploring venturing into claims processing and other knowledge process outsourcing (KPO) work in the healthcare insurance area as well as genome analysis.
Work in the area of genomics, which focuses on determining the entire DNA sequence of an organism, is already on at the firm’s innovation laboratory in Hyderabad. “Genome analysis could help ascertain what diseases a person is prone to and, thus, lead to timely prevention and care,” Ghosh said.
Meanwhile, the software services firm is also seeing strong demand from its traditional clients -- pharma companies and healthcare providers. Ghosh says there is increased pressure on pharma companies to improve R&D productivity as the spectre of patent expiry looms large over them.
One implication of that is pharma companies doing more clinical trials to assess the safety and efficacy of the drug. At the same time, healthcare regulators are becoming more vigilant worldwide. This signifies opportunities in the areas of clinical trial information management and pharmacovigilance for TCS.
While the Indian IT firm largely caters to clients in the US -- the largest healthcare market in the world-- emerging markets in Asia Pacific are also becoming more attractive as pharma companies look to tap these markets. “A lot of work related to electronic medical records and hospital management systems is happening in Asia Pacific,” Ghosh said.
He added that developments such as the Obama government’s re-look at the healthcare insurance system in the US and insurers in the West seeking to linking payments to outcome of treatment at hospitals will also spell growth opportunities for TCS.
No layoffs
GM India not to lay off employees
General Motors India (GMI) has said no employee working for its Indian operations will be retrenched even as globally the company gears to file for bankruptcy on Monday.
The company said it will continue to hire in India as scheduled, as last year it recorded a sales growth of over 9 per cent. Over 4,000 people are directly employed at GM’s operations at Halol, Talegaon, Bangalore and Gurgaon, and plans to hire close to 900 workers this year.
GM India, on Monday in a statement, said the GM India operations are not included in the US filing for Chapter 11. “Our dealers will continue to receive all our carlines, while our suppliers will continue to work with us to supply parts and components for our cars. We have no intention to modify our product, brand or other business plans including new product launches,” said Karl Slym, president and managing director, GMI.
“We can’t afford to slow down operations in a country like India where we sold 65,000 cars last year,” said P Balendran, VP, GMI. When the industry registered a negative growth (-2 per cent) in 2008, GM had registered a growth of over 9.4 per cent.
Hence the company is keen to fortify its employee base especially at its production facilities.
The company has decided to also launch two more cars this year — sedan Cruze (Rs 12-14 lakh), and a new small car (Rs 4-5 lakh). “This is in addition to LPG and CNG options in some of the existing models,” said Balendran. But dealers are worried sick whether the bankruptcy filing will affect sales in the short to medium term. “I surely expect sales to dip soon after the filing,” said a dealer in Bangalore.
An automobile analyst who did not wish to be identified said GM will struggle to increase its market share in India in the present scenario. GM has a 4 per cent share of the Indian market at present. “The company had plans to capture more than 10 per cent of the market by year 2015. Now, that looks difficult. I foresee Honda and Toyota stepping up the gas,” the analyst said.
The company said it will continue to hire in India as scheduled, as last year it recorded a sales growth of over 9 per cent. Over 4,000 people are directly employed at GM’s operations at Halol, Talegaon, Bangalore and Gurgaon, and plans to hire close to 900 workers this year.
GM India, on Monday in a statement, said the GM India operations are not included in the US filing for Chapter 11. “Our dealers will continue to receive all our carlines, while our suppliers will continue to work with us to supply parts and components for our cars. We have no intention to modify our product, brand or other business plans including new product launches,” said Karl Slym, president and managing director, GMI.
“We can’t afford to slow down operations in a country like India where we sold 65,000 cars last year,” said P Balendran, VP, GMI. When the industry registered a negative growth (-2 per cent) in 2008, GM had registered a growth of over 9.4 per cent.
Hence the company is keen to fortify its employee base especially at its production facilities.
The company has decided to also launch two more cars this year — sedan Cruze (Rs 12-14 lakh), and a new small car (Rs 4-5 lakh). “This is in addition to LPG and CNG options in some of the existing models,” said Balendran. But dealers are worried sick whether the bankruptcy filing will affect sales in the short to medium term. “I surely expect sales to dip soon after the filing,” said a dealer in Bangalore.
An automobile analyst who did not wish to be identified said GM will struggle to increase its market share in India in the present scenario. GM has a 4 per cent share of the Indian market at present. “The company had plans to capture more than 10 per cent of the market by year 2015. Now, that looks difficult. I foresee Honda and Toyota stepping up the gas,” the analyst said.
Satyam
Satyam appoints Australia, NZ head
Satyam Computers has appointed Venki Prathivadi as country manager for Satyam Australia and New Zealand (ANZ) replacing Deepak Nangia.
The India based IT company has also appointed former chief information officer Vijay Prasad as principal advisor to the ANZ region to enable it to find its feet in the area after the set back in January following the revelation of a massive fraud.
The India based IT company has also appointed former chief information officer Vijay Prasad as principal advisor to the ANZ region to enable it to find its feet in the area after the set back in January following the revelation of a massive fraud.
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