IntroductionFor 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

• Infrastructure• Risk Profile• Quality of LifeThe 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.

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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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MethodologyThe 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 ResearchTholons 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 ResearchTholons utilized Secondary Research methods where primary means were not available. Historical data from Governments, global institutions and agencies, and monetary bodies were used to

provide economic related data. Publicly released 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

Rank 2007 Ranking for Global 50: 2008 Region Country City

Top5 Top8 South Asia India BangaloreTop5 Top8 South Asia India DelhiTop5 Top8 South Asia India MumbaiTop5 Top8 Southeast Asia Philippines Makati CityTop5 Top8 Western Europe Ireland Dublin

1 Top8 South Asia India Chennai2 Top8 South Asia India Hyderabad3 Top8 South Asia India Pune4 1 Southeast Asia Philippines Cebu City8 2 East Asia China Shanghai

10 3 East Asia China Beijing6 4 Southeast Asia Vietnam Ho Chi Minh City

16 5 Eastern Europe Poland Kraków5 6 South Asia India Kolkata

11 7 Middle East and Africa Egypt Cairo15 8 South America Brazil São Paulo14 9 South America Argentina Buenos Aires13 10 East Asia China Shenzhen12 11 Southeast Asia Vietnam Hanoi9 12 South Asia India Chandigarh

17 13 South America Brazil Curitiba20 14 Eastern Europe Czech Republic Prague23 15 Southeast Asia Philippines Pasig City18 16 East Asia China Dalian (Dairen)21 17 South Asia India Coimbatore19 18 South America Chile Santiago7 19 South Asia Sri Lanka Colombo

25 20 Middle East and Africa South Africa JohannesburgNew 21 Southeast Asia Philippines Quezon CityNew 22 North America Canada Toronto22 23 East Asia China Guangzhou (Canton)24 24 Western Europe Ireland Belfast28 25 Eastern Europe Hungary Budapest

New 26 South America Brazil Rio de Janeiro29 27 Central America Costa Rica San José26 28 Eastern Europe Poland Warsaw27 29 Eastern Europe Czech Republic Brno

New 30 Central America Mexico Mexico CityNew 31 South Asia India Jaipur33 32 Eastern Europe Russia St. Petersburg 32 33 Southeast Asia Malaysia Kuala Lumpur34 34 Middle East and Africa Ghana Accra40 35 Eastern Europe Slovakia Bratislava

New 36 Southeast Asia Singapore SingaporeNew 37 East Asia China Chengdu43 38 Eastern Europe Romania Bucharest42 39 Eastern Europe Russia Moscow41 40 Eastern Europe Bulgaria Sofia46 41 Central America Mexico Monterrey30 42 Western Europe U.K. Glasgow City44 43 South America Brazil Brasília

New 44 Central America Mexico GuadalajaraNew 45 Southeast Asia Philippines Mandaluyong47 46 Eastern Europe Estonia Tallinn39 47 North America U.S.A. San Antonio35 48 North America Canada Halifax48 49 Eastern Europe Ukraine Kiev49 50 Eastern Europe Slovenia Ljubljana

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IntroductionMethodologyGlobal 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

Table of Contents

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