China will be top destination for off-shoring, says IDC

July 5, 2007 —

Chinese cities are expected to unseat Bangalore, Mumbai, and Delhi in India, and Manila in the Philippines, as the most popular offshore delivery centers by 2011, according to IDC.

The market researcher has introduced a new Global Delivery Index (GDI), which compares 35 cities in the Asia-Pacific as potential offshore delivery centers, based on criteria such as cost of labor, cost of rent, language skills, government policies, infrastructure, and staff turnover rates.

Bangalore currently tops the list, followed by Manila, Delhi, and Mumbai. The Chinese cities that figure in the 2007 list include Dalian, Shanghai, and Beijing, at number five, six, and seven.

Indian cities have inherent challenges such as cost of staff and pressure on infrastructure, said Conrad Chang, a research manager at IDC

IDG News Service