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Colombo among top Tech outsourcing cities
Monday, 1 October 2007 - 5:57 AM SL Time
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India remains the favoured technology outsourcing destination, amid concerns a rising rupee and soaring wages would blunt the country`s competitive edge.
A study by industry publication Global Services and investment advisory firm Tholons put the Indian cities of Chennai, Hyderabad and Pune at the top of a list of 15 emerging outsourcing destinations for global companies.
Kolkata at number five and Chandigarh at number nine were the other two Indian locations on the list, which contained three Chinese and two Vietnamese cities as well.
The three hot cities for outsourcing from China were Shanghai at number eight, Beijing at 10 and Shenzhen at 13. Ho Chi Minh City and Hanoi were put at number six and number 12.
Cebu in the Philippines came in at number four, Colombo at seven, Cairo at 11, Buenos Aires at 14 and Sao Paulo at 15, the study`s sponsors said in a statement released in Bangalore.
The list is based on criteria such as scale and quality of workforce, financial infrastructure, risk environment and quality of life.
But it does not include established outsourcing locations such as Bangalore, the New Delhi capital region, Manila, Mumbai and Dublin that have had a decade`s headstart.
Costs are surging in the prime cities in India, which has earned a reputation as the world`s back office, as property values and rentals rise and wages increase at an annual pace of more than 15 per cent amid a shortage of skilled employees.
Indian outsourcing firms are also feeling the pinch from an appreciating rupee, which dents dollar-billed earnings, forcing them to cut costs by expanding to less expensive locations.
`With the demand-supply gap widening, newer tier II cities will play a critical role in re-engineered globalisation models,` said Tholons chairman Avinash Vashistha.
`Destinations will need to provide greater level of cost effectiveness and operational efficiency.`
India`s outsourcing companies have thrived by winning work from companies in the US and Europe that sought to tap the country`s low costs and large employee pool by handing over jobs ranging from answering customers` calls to risk management and financial analysis.
Pure-play outsourcing firms account for about 10 per cent of the 50 billion dollars in revenue logged in the year ended March by the entire information technology industry, which also includes software giants such as Tata Consultancy and Infosys.
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AnuD
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 30 Sep 2007 23:05:00 GMT Report for Abuse
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For years, many companies in the west had flattenend profit margin levels. the result was outsourcing of their business.
Now, the computer industry is saturated in the west. So, companies are moving outside. there are many industries like that. Garment industry is no where to be seen in the West. Probably, Garment industry also moved out of Sri Lanka for cheaper destinations.
Some Indian companies are moving their businesses to Mexico. The best thing is UNIONS should not disturb these businesses. Instead by shares from those companies, so that, money will come back to the country.
For tech jobs, many countries in the world are competing. Vietnam is one such place. |
laliths
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30 Sep 2007 23:23:49 GMT Report for Abuse
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| Wonderful news to our skilled and talented youngsters. |
SatanKaBacha
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 30 Sep 2007 23:29:32 GMT Report for Abuse
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Credit goes to the LTTE, who have stopped operations in the South..
:P
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Rapaport
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 30 Sep 2007 23:30:50 GMT Report for Abuse
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| We need to get to the top. India denied us this opportunity by injecting terrorism into our system. Its time to get back cos the Indian ruppee is so strong that companies are unable to earn big dollars. We must take advantage. Its pay back time! We must train more and more youth! |
AnuD
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30 Sep 2007 23:46:02 GMT Report for Abuse
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India has some advantage because even for the Bachelors degree program they taught so many subjects. when IT was developing that became a advantage because, IT knowledge could be applied in relation to every subject area.
So, Sri Lankan universities also must understand the needs of the world and Sri Lanka. |
Berty
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 1 Oct 2007 00:02:12 GMT Report for Abuse
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The list is based on criteria such as scale and quality of workforce, financial infrastructure, risk environment and quality of life.
Quality of life...lolz |
EEELamaya
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 1 Oct 2007 00:13:51 GMT Report for Abuse
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Cebu in the Philippines came in at number four, Colombo at seven,
When Cebu is ahead of Colombo, we know what kind 'Top tech outsourcing city' Colombo is.
In fact Myanmar has much better cost advantage than Colombo for software development. And Vietnam and even Bangladesh have very skillful resources.
Somebody told me even Virtusa is going to India for development because of high quality talent abundant in India.
It will not be easy for SL to compete in software development. Perhaps, some Indian companies may come to SL because of proximity to get their low-end jobs done.
What advantage you have in Colombo that you cannot find in Chennai or Bangalore?
Edited By - EEELamaya - 1 Oct 2007 00:19:32 GMT |
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30 Sep 2007 23:23:04 GMT