Three Indian cities have made it to the list of top 31 emerging IT and ITeS locations across the world, consultancy firm KPMG said in a report.
The KPMG report added Ahmedabad, Jaipur and Nagpur as valid alternatives to the existing favourite destinations in a list of 31 locations, most of which are in the developing countries.
With existing major locations for shared services and outsourcing reaching saturation point, newer cities are emerging, offering new and improved incentives and talent for the IT and ITeS industry, KPMG said in its report, 'Exploring Global Frontiers - the new Emerging Destinations.'
Besides Bangalore, Mumbai, the National Capital Region (NCR), Chennai, Pune and Hyderabad, which are now established ''destinations'', several smaller Tier II and III cities in India have the potential to attract IT-BPO investments, the report said.
Commenting on the findings KPMG Sourcing Advisory services in India Partner-in-Charge Viral Thakker said: ''Realising the growth potential of the IT-BPO industry, Tier II cities in India have now jumped on the sourcing bandwagon and can be projected as viable destinations.''
While the established centers would continue to be major centres of outsourcing, firms have started looking at alternative locations due to favourable business environment, access to talent and cast and living conditions, the report said.
The other cities in the Asia Pacific region that have been listed in the report include Brisbane in Australia, Changsha and Hangzhou in China, Penang in Malaysia, Davao City and LLoilo City in the Philippines and Ho Chi Minn City in Vietnam.
The list of emerging alternatives for IT and ITeS services includes 11 cities including Sofia, Belfast, Cluj-Napoca, Belgrade, Lviv, Zagreb, Port Louis, Gdansk, Rostov-on-Don and Tunis, in Europe and Cairo in the Middle East and Africa region.
In the Americas, Buenos Aires, Campinas, Curitiba, Calgery, Winnipeg, Santiago, Guadalajara, Queretaro, Boise and Indianapolis are now emerging as key alternatives for IT and ITeS industry, the report said.