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Shake Up for Asia/Pacific Global Delivery Locations Reveals New Perspective on Sourcing Destinations, According to IDC

  • 24 June, 2008 15:29

<p>Singapore &amp; Hong Kong, June 24, 2008 – Changing economics and market drivers are shaking up the market for global delivery locations within Asia/Pacific. As the focus shifts away from costs, the differentiation between cities is being reduced while competition for lucrative offshore spending in increasing. These shifts have conversely impacted different segments of the market, with formerly low-cost destinations becoming less desirable, and higher cost skills-based propositions becoming more popular.</p>
<p>Results from IDC's latest Global Delivery Index- Asia/Pacific (GDI-AP) v2.0 indicate changes in the market for global delivery locations, with notable movements since 2007. Changes in scores are the result of a number of factors which are primarily linked to changes in economic circumstances - either directly, or by way of changing buyer and investor behaviour.</p>
<p>Changes in several key criteria that have impacted the scores of cities profiled in the index include the following:
- Government support has changed for a number of locations over the last six months, driving initiatives on both a federal and local government level. Results indicate the greater the support, the better a location is positioned for global delivery.
- Labour costs are increasing across the board as early adopters and formerly low-cost locations are falling subject to diseconomies of scale, and appreciation of many currencies, in particular the rupee.</p>
<p>There has been a shake up in the locations currently considered to be optimal for global delivery, with some notable movements since version 1.0 was released. Dalian, Beijing, Auckland and Kuala Lumpur most strongly reflect changing dynamics, particularly in regard to changes in government support and the fallout from rising labour costs.</p>
<p>IDC's Global Delivery Index (GDI) compares 35 cities in the Asia/Pacific region as potential global delivery centers, based on a comprehensive set of criteria such as agent skills, political risk, cost of labor, cost of rent, language skills, and turnover rate.</p>
<p>Notes to Editor
Economies covered in the IDC Global Delivery Index are Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, The United Arab Emirates (UAE) and Vietnam.</p>
<p>The GDI enlists the full resources and insights of IDC’s capabilities in depth and breadth of coverage: Analyst presence across 12 countries in Asia/Pacific that are conducting ground research and have local insights and expertise. IDC analysts frequently visit the global delivery centers throughout Asia/Pacific, which gives IDC direct insight into the facilities and the capabilities of the centers.</p>
<p>For more information about purchasing the research, please contact Elaine Chia at +65-6829-7758 or For press enquiries, please contact Eileen Tan at +65-6829-7775 or</p>
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting</p>
<p>For press enquiries, please contact:
Jenna Griffin
Senior Research Analyst, Asia/Pacific Global Delivery Services Research
<p>Eileen Tan
Media Relations &amp; Marketing Executive

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