India has undergone tremendous change brought on by the outsourcing phenomenon and as a result clients are faced with numerous decision criteria in evaluating, and ultimately selecting, the right location for services globalization. In its latest white paper, titled India: City Competitiveness, neoIT evaluated twenty-seven cities in India based on four primary criteria: People -- including population numbers, quality and education system; Infrastructure -- electrical power, telecommunications, roads, airports; Financial -- cost of living, real estate prices; and Catalysts – government support, supporting industries, social and political stability, competing companies and weather. From this data, neoIT developed the 'Offshore Competitiveness Index' in order to rank the relative competitiveness of each city as a destination for BPO or ITO.
"As the offshoring industry matures, location selection takes precedence over supplier selection," stated Atul Vashistha, CEO of neoIT. "In the early days, the competition was between countries. Today, a more likely scenario is to see Bangalore competing with Manila, instead of India competing with the Philippines. To respond to this change in location selection criteria, neoIT is providing clients with more market data about the specific strengths and shortcomings of individual cities within the top BPO and ITO markets."
As the competition between Indian cities heats up, a few strong contenders have emerged as the best destinations for outsourcing. Of the twenty-seven cities evaluated by neoIT throughout 2004, Gurgaon topped the rankings with Bangalore, Pune, Hyderabad and Chennai following closely behind. Delhi, a top IT destination in the early 1990's, fared poorly in the study, coming in at number twenty. Other cities that received high rankings include Mumbai and Noida.
Challenger cities that are rapidly emerging as viable BPO and ITO offshore destinations include Kolkata, Thiruvananthapuram, Chandigarh and Indore."Competition among cities, as well as between countries, is good for the industry as it raises the bar on standards for services globalization," added Vashistha. "The emergence of 'Centers of Excellence' across India creates a benchmark for other cities across the globe to aim for in order to become leading BPO or ITO destinations.A free copy of the complete report is available at neoIT's Offshore Knowledge Center at:
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