Introduction
For the third year running, Tholons presents the Global 50 Centers of Excellence - an exhaustive study
which aims to provide an accurate means of assessment of Global Outsourcing destinations in relation to
their capacities as service delivery centers.
In recent years, we have noticed an increasing trend
during our interactions with Tier I and Institutional
clients. That is - there is an increasing need for a
higher level of granularity when identifying potential
Global Outsourcing locations. We are more often
referring to specific locations such ‘Cebu City’ and
‘Monterey’ rather than broad designations of Philip-
pines and Mexico. Further, clients have increas-
ingly demanded a greater focus when we are asked
to provide location assessment. The days of simply
stating English literacy rate, or number of college
graduates, have greatly evolved. Today, we are
delivering location analysis to clients that are more
detailed and more relevant in guiding their business
decisions. When we refer to voice and English profi-
ciency for example, we asses by specific segments
such as comprehension, attention to detail and
verbal aptitude. Likewise, this more granular
method of segmentation is applied to other catego-
ries such as scale and quality of the labor force.
Where indicating the total number of graduates may
have been a sufficient point of reference five years
ago, today we are enumerating the number of Engi-
neering and Computer Science graduates on both a
per country and per city level.
As a reference point, Tholons identifies six general
categories in providing location assessment. Within
these six segments are fifteen sub-categories, each
possessing a corresponding weight. Providing this
level of detail allows for a more thorough analysis of
locations and their long-term potential as Business
Process Outsourcing delivery centers, where a
business process can be IT, technology or any of
the other business services lines such as finance
and accounting, human resource, business analyt-
ics or R&D.
For this report, Tholons utilizes the following catego-
ries in providing location assessment:
• Scale & Quality of Workforce (including
Education)
• Business Catalyst
• Cost
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• Infrastructure
• Risk Profile
• Quality of Life
The parameters above are the very same compo-
nents which differentiate cities, and to a large
extent – determine their individual capacities to
fulfill particular services. Cities with large, English-
proficient labor pools for example, may be better
equipped to provide voice-based customer support
while a smaller city with robust infrastructure and
adequate supply of network engineers may be
better candidates to provide IMS (Infrastructure
Managed Services). Consequently, there is no
definitive set or order of parameters which will
provide a definitive advantage for each city across
all service lines. Each parameter must take into
consideration a number of determining factors: type
of service, desired scale, and nature of delivery, to
name a few aspects.
Needless to say, the past eighteen months have
been an incredibly dynamic period for the global
Outsourcing industry. The ongoing downtrend of
the US economy, the continuing maturation of the
Outsourcing model, the rise of Tier II & III cities as
delivery centers, the heightened level of competi-
tion and emergence of ‘global BPO providers’ are
some of the key ecosystem movements we
continue to closely monitor. We have noticed that
with each fundamental shift in the market, stake-
holders in turn are requiring a deeper understand-
ing of delivery locations. This level of knowledge
has become essential not only to maintain financial
objectives, but more so to ensure competitive
advantages and longevity in an increasingly com-
petitive market environment.
With each passing year, location assessment
continues to be a moving and morphing target, with
a new set of market variables that need to be
considered. This is the challenge that Tholons
readily accepts in delivering the Global 50 Centers
of Excellence.
City v/s Country
Location assessment based on a city perspective
as opposed to a country level is reflective of the
ongoing trend we are witnessing in the global
Outsourcing arena. That is, service providers are
looking to identify and tap the inherent capabilities
and capacities of specific locations. This transition
on how service providers view locations illustrate
both the maturation of the Outsourcing model and
heightened focus on service delivery optimization.
Today, a single provider can have centers in
multiple countries and cities, with each city having
the optimal conditions to fulfill specific service lines.
Software development can be done in Bangalore,
customer service can be done out of Makati City,
while Engineering Services are processed out of
Krakow. The one-stop-shop country model has in
fact given way to the more efficient, multi-city, best-
of-breed city model.
Further, the city perspective which location assess-
ment now entails reflects the increased responsi-
bilities which local government units now have in
developing their respective areas. City officials,
infrastructure providers, and local stakeholders are
often better able to promote, stimulate and market
their city’s specific capabilities as outsourcing
service providers. Moreover, local stakeholders are
able to address ecosystem concerns in a timelier
manner. Many City Mayors and local government
units for example, can provide city-specific tax
incentives for locators, and Telco providers can
deploy connectivity in a much more targeted scale.
This pace of efficiency ultimately allows cities to
move in a more efficient manner in attracting service
provides into their fold. Consequently, nationwide
agendas and developmental roll-outs as otherwise
mandated by national Governments are often
prolonged and drawn out – a pace unfavorable to
most service providers.
Though we highlight the increasingly vital role which
individual cities play in a country’s Outsourcing
arena, we do not discount the significance which
national governments and institutional bodies play in
shaping the industry. National governments and
industry bodies are commonly tasked to provide
guidance, policies and set direction. Likewise, these
organizations provide essential monitoring and regu-
latory roles – ensuring that labor and business
related concerns are managed and implemented.
As such, the role of the city with regards to Outsourc-
ing should not be viewed as one which has become
entirely independent or separated from that of the
country. Rather, one should view the evolution of the
city as a direct result of a country’s inherent capabili-
ties as an outsourcing provider. Referring to Prague
as a Center for Excellence for Software Develop-
ment or Ho Chi Minh for IT Outsourcing (ITO)
processes for example, highlights the respective
country strengths which have allowed them to
deliver such services in those specific cities.
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Methodology
The Tholons Global 50 Centers of Excellence Report provides a weighted ranking of city-specific locations
in relation to their respective capacities as Global ITO/BPO destinations.

The following methodologies were implemented in fulfilling the report:

Primary Research provide economic related data. Publicly released

Tholons utilized surveys and interviews with Tier I &
II Service Providers and Service Consumers alike.
These surveys were used to determine delivery and
consumption trends for Global Outsourcing
Services in specific destinations. Primary data
gathering methodologies were also implemented to
determine market and labor sizes as well as expan-
sion strategies of Tier I & II Service Providers.
Interviews with Governments, Industry bodies and
related stakeholders were likewise performed
during the data gathering process of the report – to
provide both primary data and validation of Tholons
analysis.
Secondary Research
Tholons utilized Secondary Research methods
where primary means were not available. Historical
data from Governments, global institutions and
agencies, and monetary bodies were used to
data from Government sources were also considered
when using country-specific market data. Publicly
available financial records such as quarterly and
annual reports, industry bulletins and trade publica-
tions were used to verify market assumptions and
analysis.
Quantitative & Qualitative Analysis
Tholons employs a combination of quantitative and
qualitative analysis in developing the weighted
rankings in this report. Our proprietary weighing and
ranking system were developed and refined by
senior Tholons consultants. Further, qualitative
analysis was implemented to provide perspective to
the quantitative results of the report. Tholons care-
fully considered numerous variables when providing
final rankings, and considered the impact which
non-numerical data plays in the assessment of
Global Outsourcing locations.

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Top 50 Global Emerging Outsourcing Cities
Ranking for
Rank 2007 Region Country City
Global 50: 2008
Top5 Top8 South Asia India Bangalore
Top5 Top8 South Asia India Delhi
Top5 Top8 South Asia India Mumbai
Top5 Top8 Southeast Asia Philippines Makati City
Top5 Top8 Western Europe Ireland Dublin
1 Top8 South Asia India Chennai
2 Top8 South Asia India Hyderabad
3 Top8 South Asia India Pune
4 1 Southeast Asia Philippines Cebu City
8 2 East Asia China Shanghai
10 3 East Asia China Beijing
6 4 Southeast Asia Vietnam Ho Chi Minh City
16 5 Eastern Europe Poland Kraków
5 6 South Asia India Kolkata
11 7 Middle East and Africa Egypt Cairo
15 8 South America Brazil São Paulo
14 9 South America Argentina Buenos Aires
13 10 East Asia China Shenzhen
12 11 Southeast Asia Vietnam Hanoi
9 12 South Asia India Chandigarh
17 13 South America Brazil Curitiba
20 14 Eastern Europe Czech Republic Prague
23 15 Southeast Asia Philippines Pasig City
18 16 East Asia China Dalian (Dairen)
21 17 South Asia India Coimbatore
19 18 South America Chile Santiago
7 19 South Asia Sri Lanka Colombo
25 20 Middle East and Africa South Africa Johannesburg
New 21 Southeast Asia Philippines Quezon City
New 22 North America Canada Toronto
22 23 East Asia China Guangzhou (Canton)
24 24 Western Europe Ireland Belfast
28 25 Eastern Europe Hungary Budapest
New 26 South America Brazil Rio de Janeiro
29 27 Central America Costa Rica San José
26 28 Eastern Europe Poland Warsaw
27 29 Eastern Europe Czech Republic Brno
New 30 Central America Mexico Mexico City
New 31 South Asia India Jaipur
33 32 Eastern Europe Russia St. Petersburg
32 33 Southeast Asia Malaysia Kuala Lumpur
34 34 Middle East and Africa Ghana Accra
40 35 Eastern Europe Slovakia Bratislava
New 36 Southeast Asia Singapore Singapore
New 37 East Asia China Chengdu
43 38 Eastern Europe Romania Bucharest
42 39 Eastern Europe Russia Moscow
41 40 Eastern Europe Bulgaria Sofia
46 41 Central America Mexico Monterrey
30 42 Western Europe U.K. Glasgow City
44 43 South America Brazil Brasília
New 44 Central America Mexico Guadalajara
New 45 Southeast Asia Philippines Mandaluyong
47 46 Eastern Europe Estonia Tallinn
39 47 North America U.S.A. San Antonio
35 48 North America Canada Halifax
48 49 Eastern Europe Ukraine Kiev
49 50 Eastern Europe Slovenia Ljubljana

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Table of Contents

Introduction
Methodology
Global Offshore BPO Overview
The Global Top 50 Centers of Excellence
Region 1: Southeast Asia
Offshore BPO in Southeast Asia
Philippines
Philippine City Centers
Vietnam
Vietnam City Centers
Singapore
Singapore City Centers
Malaysia
Malaysia City Centers
Region 2: South Asia
Offshore BPO in South Asia
India
India City Centers
Sri Lanka
Sri Lanka City Centers
Region 3: East Asia
Offshore BPO in East Asia
People’s Republic of China
People’s Republic of China City Centers
Region 4: Central America
Offshore BPO in Central America
Costa Rica
Costa Rica City Centers
Mexico
Mexico City Centers
Region 5: Western Europe
Offshore BPO in Western Europe
United Kingdom
United Kingdom City Centers
Republic of Ireland
Republic of Ireland City Centers
Region 6: North America
Offshore BPO in North America
Canada
Canada City Centers
Untied States of America
United States of America City Centers
Region 7: Middle East and Africa
Offshore BPO in Middle East and Africa
Egypt
Egypt City Centers
South Africa
South Africa City Centers
Ghana
Ghana City Centers
Region 8: South America
Offshore BPO in South America
Brazil
Brazil City Centers
Argentina
Argentina City Centers
Chile
Chile City Centers
Region 9: Eastern Europe
Offshore BPO in Eastern Europe
Poland
Poland City Centers
Czech Republic
Czech Republic City Centers
Hungary
Hungary City Centers
Russia
Russia City Centers
Slovakia
Slovakia City Centers
Romania
Romania City Centers
Bulgaria
Bulgaria City Centers
Estonia
Estonia City Centers
Ukraine
Ukraine City Centers
Slovenia
Slovenia City Centers