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IDC’s Global Delivery Index (GDI) Predicts Chinese Cities to Overtake Bangalore, Manila and Mumbai as Highest Ranked Global Offshore Delivery Centers by 2011

  • 04 July, 2007 14:42

<p>Singapore and Hong Kong, July 04, 2007 - IDC has developed a new Global Delivery Index (GDI), which compares 35 cities in the Asia/Pacific as potential offshore delivery centers, based on a comprehensive set of criteria such as cost of labor, cost of rent, language skills and turnover rate. In its inaugural findings, Indian cities are highly ranked, while Chinese cities are on the rise and closely nipping at India's heels. Examples of cities covered include Adelaide, Bangalore, Dalian, Hanoi, and Kuala Lumpur among many others.</p>
<p>"There are different risk factors to consider when evaluating outsourcing, offshoring, onshoring, and nearshoring. Some factors are obviously more critical than others and the GDI takes that into consideration" comments Conrad Chang, Research Manager for IDC’s Asia/ Pacific BPO Research. "Often times, what differentiates leading cities from the rest is their focus on deal-clinching factors, and the GDI weighs that more heavily than other factors."</p>
<p>IDC research shows that the top 10 cities in 2007 for global delivery focused more on deal clinching factors that include criteria such as agent skills, political risk, cost of labor, and language skills. Other factors that are also important in global delivery, such as resources &amp; skills, infrastructure, and government factors, are well balanced among the leading cities.</p>
<p>IDC observes the following issues among key decision makers regarding business decisions for global delivery:</p>
<p>• Confusion about offshoring, onshoring, nearshoring and how to leverage different delivery methods for optimal results.
• Is India the only viable option and what are the other alternative global delivery centers?
• How to objectively compare and quantify risks between different locations, for example, is Bangalore better than Dalian, and what is the basis for comparison?
• What is the potential of different locations for the future, particularly second tier locations such as Vietnam and Malaysia?</p>
<p>Note: Overall weighted scores take into account all 30 criteria used in the evaluation. Deal clinching factors focus only on selected criteria that are deemed the most important when evaluating a city and also has a correspondingly higher weighting attached to them.</p>
<p>The IDC study also forecasts how these top 10 cities rankings might change in 2011. The GDI reports take into consideration future plans of cities such as future infrastructure plans and efforts taken to lay a firm foundation for attracting investments. IDC forecasts that Chinese cities will overtake Indian cities by 2011 due to massive investments made ( e.g. infrastructure, English language, Internet connections, technical skills, etc) which are favorable towards offshoring. More insights can be obtained from the soon to be launched Global Delivery Index Program in July 2007.</p>
<p>The GDI will be discussed more in depth at IDC's up and coming Managed Services Conference to be held from 22 June to 22 August 2007 across six cities in the Asia/Pacific region. For more information about the conference, please visit</p>
<p>If you would like further information or to purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email or phone 02 9925 2226.</p>
<p>For press enquiries please contact:
Conrad Chang
Research Manager, Asia/Pacific BPO Services Research
Phone: 61 2 9925 2245
<p>Click here to view the press release online:</p>
<p>Click here to subscribe to IDC press releases and newsletters online:</p>
Mark Wood
Web Marketing Executive
IDC Australia
61 2 9925 2229</p>

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