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In its ranking of the top 100 outsourcing destinations, Tholons’ report shows that all the world’s top eight outsourcing cities are located in India and the Philippines.

The first spot was held by Bangalore. But the striking part was Manila edging out Mumbai, to become the second top outsourcing destination in the whole world. The key to the explosive growth of Manila’s outsourcing industry is considered to be huge pool of young and educated English-speaking workers in the Philippines as well as infrastructure and government support. Already the country has identified 10 cities that it aims to develop as hubs for outsourcing. Some of these cities appear on the Tholons ranking.

The report shows that India’s advantage in the BPO sector is because of the market size, which is far greater than that of the Philippines. In 2012, India employed 2.8 million workers in the BPO industry, while the Philippines had just around 750,000 in the same year.

Another reason for India’s dominance is it is claimed because of an “unbeatable mix” of low costs, deep technical and language skills, mature vendors and supportive government policies.

 

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