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Jenna Griffin
Senior Market Analyst, Asia/Pacific Services Research
"The long-term nature of global sourcing, and the development of global delivery locations lends itself towards broad, sweeping trends influencing the market. While in many cases, there will be wholesale change caused across the region by changes in external dynamics, there will inevitably be some locations better poised to cope with a given situation. "
Philip Carter
Associate Research Director, Asia/Pacific IT Services Research



GDI-AP

IDC's Global Delivery Index: Asia/Pacific (GDI-AP) is a comprehensive tool that compares more than 30 Asia/Pacific cities across more than 30 different criteria. This provides an independent outlook on the global sourcing market, and how it relates to traditional IT markets. Service providers will be able to use the GDI-AP and the global sourcing program to validate their global sourcing strategies in the marketplace, and to affirm decisions around global delivery locations. End users will use the index to help build business cases for utilizing offshore resources - either through external suppliers, or validate choices for shared services locations.

The GDI-AP is revisited and refreshed every six months to account for changes in the market place.  The index will continue to evolve, and enterprises are able to use it as a key industry barometer.

Program Options
  • The Asia/Pacific Global Delivery Index: Outsourcing Services program is a subscription program which provides a continuous flow of information of global sourcing, and the GDI-AP over a 12 month period. This includes a semiannual update of the index as well as insights into changes occurring within the global sourcing landscape, and new opportunities on the horizon.

  • Subscription research is not always the answer, and IDC is able to provide customized options to address a particular request around the GDI-AP and Global Sourcing program. Potential customised options include:

    • Taking a deep dive into selected locations for further gap analysis and benchmarking.
    • Focus on a selected set of criteria for comparators that are crucial to a client’s strategic needs.
    • Make an assessment of additional locations based on the existing criteria in the GDI-AP.
Who Benefits from the GDI-AP?

Outsourcing/BPO/Global Delivery Service Providers

Increasingly, many service providers are realizing that they need to be present in multiple locations. Key concerns faced by decision makers are:

  • Where to locate their global delivery centers in Asia/Pacific including Japan (APJ)?
  • What is the basis for comparing one location to another and how will the requirements change over time?
  • How to map differing cost requirements to different cities to provide clients with an optimal mix of locations?
  • What tangible and objective information to put in sales proposals on blending different locations to meet clients’ outsourcing needs?

End User Corporations

IDC’s interactions with end users reveal many concerns that enterprises have with regards to global delivery.  The GDI-AP will help enterprises to address the following issues:

  • Where to locate their shared services center and the reasons for choosing a particular location.
  • Using the GDI-AP to evaluate and choose the right service provider that is able to meet the enterprise’s outsourcing needs from the locations that the enterprise wants.
  • Understand the current and future potential of different locations so as to fit these criteria into business decisions when it comes to outsourcing.

Methodology

The GDI-AP enlists the full resources and insights of IDC’s capabilities relating to depth and breadth of coverage across the region:

  • Local analyst presence in 12 countries across Asia/Pacific and Japan that are doing on the ground research and supplying continual insights and expertise on local markets.
  • IDC frequently visits many global delivery centers that are set up by different service providers and is privileged to get first hand experience in seeing and evaluating the facilities available in these centers.
  • Relevant secondary research is also used to verify and validate criteria shown in the GDI-AP.
  • The cumulative insights gathered from interviews, surveys and onsite visits are then used by IDC to score the cities on a 7 point scale, with a weighting system applied to deal clinching criteria.

Table 1
Cities Included in IDC's Global Delivery Index Asia/Pacific, 2007

Adelaide AUSTRALIA

Guangzhou CHINA

Penang, MALAYSIA

Auckland NEW ZEALAND

Hanoi VIETNAM

Pune INDIA

Bangalore INDIA

Ho Chi Minh City VIETNAM

Seoul KOREA

Bangkok THAILAND

Hong Kong HONG KONG

Shanghai CHINA

Beijing CHINA

Hyderabad INDIA

Shenzhen CHINA

Brisbane AUSTRALIA

Jakarta INDONESIA

Singapore SINGAPORE

Cebu PHILIPPINES

Karachi PAKISTAN

Sydney AUSTRALIA

Chengdu CHINA

Kuala Lumpur MALAYSIA

Taipei TAIWAN

Chennai INDIA

Manila PHILIPPINES

Tianjin CHINA

Colombo SRI LANKA

Melbourne AUSTRALIA

Tokyo JAPAN

Dalian CHINA

Mumbai INDIA

Xian CHINA

Dubai UNITED ARAB EMIRATES

New Delhi INDIA

 

Source: IDC Global Delivery Index Asia Pacific, v1 October 2007

Table 2
 

Macro Category     

Comparison Criteria

Deal Clinching Criteria

Agent skills and capabilities

Domestic Outsourcing Market Demand

Outsourcing Export Market Facilitation

Cost of a fresh graduate

Cost of doing business

Data Support Skills

English Language Skills

HR Matters

Other Language Skills

Political Risk

User Based Outsourcing Center Facilities

Government & Risk Factors

Currency Risk

Federal Government Support

Legislative Risk

State Government Support

Infrastructure Factors

General Infrastructure

IT Infrastructure

Network Infrastructure/cost

Resource & Skills Criteria

Compliance and Judiciary System

Corporate transparency

Cost of a 5 year, experienced worker

Cost of living

Cost of office rental

Education Facilities

Expatriate Attractiveness

Finance & Accounting Outsourcing Services

Global connectedness & time zones

HR Outsourcing Services

Location Diversity

Other Outsourcing Services

Procurement Outsourcing Services

Customer Care Outsourcing Services

Source: IDC, 2007
 
 
 
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