World's top 20 BPO hotspots

Even as some reports suggest that the Philippines has displaced India as the business process outsourcing capital of the world, it is pertinent to note that India continues to be a BPO powerhouse of the world.

Of the top ten BPO destinations in the world, there are as many as six Indian cities. But many other cities across the world are soon catching up.

Bengaluru

Bengaluru remains the top outsourcing hotspot for fourth successive year, with high talent and established service delivery capabilities, says the Global Services-Tholons list of outsourcing cities.

The study takes into account the skills and scalability, savings, business environment, operational environment, business risk and quality of life in these cities. Cost still plays a significant factor in choosing a location, says the study.

So click NEXT to check out which are the world's top 20 BPO destinations. . .

Mumbai (Rank 2)

Mumbai moved up to second place this year, with its huge labour pool with enhanced service delivery in high-value services.

The financial capital of India has 60,000 employees in the BPO sector.

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New Delhi (Rank 3)

India's capital city, New Delhi (NCR), has slipped to third place from second last year.

The National Capital Region, which comprises the three cities of Delhi, Noida and Gurgaon, offers a good eco-system for business analytics, finance and accounting, software development, product development, engineering services and contact centre services in English.

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Manila (Rank 4)

Several factors like a well-educated workforce, good language competencies and work ethics have made the Philippines an attractive BPO destination.

Manila has an edge over other places with a growing population of English-speaking youngsters with strong cultural affinity to North America.

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Chennai (Rank 5)

Chennai has moved up one the ladder taking the 5th place. Chennai remains India's second-largest exporter of software, IT and related services.

A competitive business environment, operating cost advantages, scalability, telecom connectivity, urban infrastructure, and skilled professionals make Chennai a BPO hotspot.

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Hyderabad (Rank 6)

Hyderabad moved up to sixth place owing to its mature service delivery capability and large pool of engineering and technical graduates.

Hyderabad has established itself a leading destination for IT and IT-enabled services.

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Dublin (Rank 7)

Dublin scores on application development and maintenance outsourcing, research & development, health care and legal processing services.

The city scores on high-end shared services and attracts foreign direct investment from other Western European countries.

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Pune (Rank 8)

The city has established itself as a centre for engineering design services, finance and accounting services, legal services and good network of contact centres.

One of the fastest growing cities in India, it has a large number of schools and colleges.

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Cebu City (Rank 9)

Cebu City and Shanghai have significantly developed their respective outsourcing industries. For the past two years, Cebu ranked first in the emerging cities category from fourth place in 2007.

The BPO employees in the Philippines are more qualified compared to workers in India and China.

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Shanghai (Rank 10)

Tholons described Cebu and Shanghai, the new entrants to the top 10, as cities that have "shown service delivery maturity in their niche outsourcing services."

In a bid to establish Shanghai as a service outsourcing hub, the city has five service outsourcing parks.

Click NEXT to find out which are the top 10 emerging BPO hotspots . . .

Krakow (Rank 1)

Krakow in Poland jumps three places to be ranked as the best emerging BPO destination.

The BPO sector started growing in Poland about 8 years ago, mainly in the field of bookkeeping and finance, IT services and in R&D work.

Poland's main advantages are favourable investment climate and qualified human resources.

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Beijing (Rank 2)

The Chinese government is pro-active in helping companies set up a BPO company in China. A single window processing makes the process much easier.

The Chinese government has invested more than $5.4 billion in English education at Universities. NIIT has set up over 100 centres in China.

Buenos Aires (Rank 3)

Argentina has a large pool of talented and educated people.

Once an expensive place, Argentina became a preferred outsourcing destination after the devaluation of its currency, peso.

The cost of living and salaries dropped, giving outsourcing companies the right environment to thrive. Affordable office space makes it one of the most profitable locations for business.

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Cairo (Rank 4)

Cairo has once again been recognised as one of the world's top offshoring cities, ranked 4th emerging city in the latest 'Top 100 Outsourcing Cities' report conducted by Global Services-Tholons.

Last year, Egypt was ranked 7th and this leap to 4th in the 2010 list highlights the ongoing developments and investments being made in the country, resulting in Cairo emerging as the top city from Middle East and Africa.

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Sao Paulo (Rank 5)

Sao Paulo, in Brazil, is transforming from a strong industrialised base into a service and technology-oriented offshoring location.

The city has a mix of global multinational executives who have their BPOs and contact centers providing IT services and R&D.

Ho Chi Minh City (Rank 6)

Ho Chi Minh, an industrial and commercial hub in Vietnam, has advantages in terms of low wages, English-language skills and technical proficiency.

Dalian (Rank 7)

Dalian in China is being touted as the new face of emerging competition for BPO players in India.

Good infrastructure, educated workforce, and excellent government support.

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Shenzhen (Rank 8)

Shenzhen has rapidly grown as a outsourcing business hub.

A number of domestic and foreign outsourcing service companies have made Shenzhen as an international business base to accelerate the expansion of business and staff.

Shenzhen also has China's most successful Special Economic Zone (SEZ).

Curitiba (Rank 9)

Brazil has a well established global services industry. Curitiba has 55 higher education institutions and five universities.

Curitiba, the seventh largest city in Brazil is a growing IT hub in the region with low wages and good infrastructure support.

Colombo (Rank 10)

The capital of Sri Lanka, Colombo has jumped from the 17th position last year to 10th this year.

The geographical location, infrastructural facilities, direct access to the Indian market, high standards of the work force, open economy make it an ttractive destination for outsourcing. The city accounts for 60 per cent of the country's foreign direct investment.