top 100 global engineering locations
TRANSCRIPT
Confluence 2013
Accelerating Global
Innovation 6th March 2013 Hyatt Regency Santa Clara, CA
Top 100 Global Engineering Locations
1 Zinnov
1 1 Note:
The following report is the summary of the final study on “Top 100 Global Engineering Locations” Zinnov team is still working on an exhaustive report which will be released on our web portal for public view shortly. Copyright Members are welcome to an unlimited number of copies of the materials contained within this report. Furthermore, members may copy any graphic herein for their own internal purpose. Zinnov requests only that members retain the source name/logo mark on all pages produced. Please contact our HR council account manager at +1-408-716-8432 for any help we may provide. The report herein is the property of Zinnov LLC. Beyond the membership, no copyrighted materials of Zinnov may be reproduced without prior approval. Disclaimer All the information contained in this report is obtained through discussions with industry experts, public and confidential information sources believed to be reliable. Zinnov makes no representations or warranties regarding the errors, omissions or completeness of any information contained herein and shall have no liability for the same. The report is provided solely for informational purposes and opinions must not be construed as advice, recommendations or endorsements. The reader of the report is advised to conduct an independent evaluation and form conclusions with respect to the information provided.
Zinnov Talent Practice
2 Zinnov
2 2
TABLE OF CONTENTS
Note:
Top 100 Cities 1
Key Findings - Summary 2
City Profiles 3
Appendix - Definitions & Methodology 4
100 Cities worldwide
400+ cities worldwide evaluated Deep dive
SUMMARY – APPROACH
Zinnov reviewed over 400 global cities and identified the top 100 most promising technology hubs for deep dive analysis
AMERICAS EMEA APJ
Austin New York Buenos Aires Santiago Brussels Tel Aviv Kiev Bangalore Sydney Chengdu
Atlanta San Diego Pittsburgh, PA Sao Paulo Cambridge Bucharest Kharkov Beijing Taipei Coimbatore
Bay Area Seattle Fairfax Davenport Copenhagen Bratislava Moscow Chennai Tokyo Colombo
Boston Toronto Florence Guayaquil Frankfurt Budapest Prague Guangzhou Dalian Hochiminh City
Chicago Vancouver Fremont Lima Geneva Cairo Ra'Anana Hong Kong Hyderabad Kolkata
Dallas Washington D.C.
Ft. Lauderdale Lincoln Haifa Dubai St. Petersburg Kawasaki Pune Metro Manila
Detroit Bogota Guadalajara Managua Helsinki Dublin Warsaw NCR Selangor Penang
Los Angeles Boise Honolulu Rio de Janeiro London Durban Sofia Seoul Shenzhen Xiamen
Raleigh-Cary Boulder Mexico City Santiago de Querétaro
Munich Johannesburg Shanghai Chandigarh
Minneapolis Brasilia Oklahoma City Santo Domingo Nice Amman Singapore
Montreal Broomfield San Juan Wichita
San José – Costa Rica
Cost Infrastructure Competitive Landscape
University Ecosystem
Installed/Fresh Talent Pool
Source: Focus group discussion with Zinnov clients, Zinnov R&D council, Zinnov Location and Talent Framework
Technology Depth
Type of Work
Zinnov 4
SUMMARY - TOP ENGINEERING LOCATIONS
About 45% of the top 100 cities are in the “AMERICAS REGION”
Source: Zinnov Location and Talent Framework
108,520
Established Locations
Austin Atlanta Bay Area
Boston Chicago
Dallas Detroit Los Angeles
Raleigh-Cary Minneapolis
Montreal New York San Diego
Seattle Toronto
Vancouver Washington D.C.
Locations to Emerge in Future
Davenport Lincoln Santiago de Querétaro
Guayaquil Managua Santo Domingo
Lima Rio de Janeiro Wichita
Emerging Locations
Bogota Boise
Boulder Brasilia
Broomfield Buenos Aires Pittsburgh, PA
Fairfax Florence
Fremont Ft. Lauderdale Guadalajara
Honolulu
Mexico City
Oklahoma City San Juan Santiago São Paulo San Jose, Costa Rica
Zinnov 5
SUMMARY - TOP ENGINEERING LOCATIONS
About 28% of the top 100 cities are in “EMEA REGION”
Source: Zinnov Location and talent framework
Established Locations
Brussels Cambridge
Copenhagen Frankfurt
Geneva Haifa Helsinki London Munich
Nice Tel Aviv
Emerging Locations
Bucharest Bratislava Budapest
Cairo Dubai
Dublin Durban Johannesburg
Amman Kiev
Kharkov Moscow Prague
Ra'Anana St. Petersburg
Warsaw
Locations to Emerge in Future
Sofia
Zinnov 6
SUMMARY - TOP ENGINEERING LOCATIONS
About 27% of the top 100 cities are in the “APJ REGION”
Source: Zinnov Location and talent framework
Established Locations
Bangalore Beijing Chennai Guangzhou Hong Kong
Kawasaki NCR Seoul Shanghai Singapore
Sydney Taipei
Tokyo
Emerging Locations
Dalian Hyderabad
Pune Selangor
Shenzhen Locations to Emerge in Future
Chandigarh
Chengdu Coimbatore
Colombo
Hochiminh City Kolkata
Metro Manila Penang Xiamen
Zinnov 7
DRIVERS
Conducive business climate and developed infrastructure along with access to highly qualified talent were the key reasons for the emergence of these 100 locations
Source: Zinnov Location and talent framework
Drivers which led to the emergence of these Locations
Access to good quality talent
Market Expansion leading to greater demand
University-Corporate partnership in research and development
Developed Infrastructure
Location Attractiveness- High Standards of Living
Drivers
High priority for innovation and IP creation
Business climate conducive for Start-ups
Focus on creating an outstanding corporate culture and work environment
Matured core business processes and high end work
Mature service provider ecosystem
8 Zinnov
8 8
TABLE OF CONTENTS
Note:
Top 100 Cities 1
Key Findings - Summary 2
City Profiles 3
Appendix - Definitions & Methodology 4
Zinnov 9
SUMMARY – LABOR COST COMPARISONS
Average labor cost percentage differential between the established and emerging cost locations is highest in EMEA, approximately 86 percent
Source: Zinnov Labor cost tracker, Zinnov cost analysis modeler 2011
Average Labor Cost Differential, 2011
Established Emerging FutureEmergents
$101,100
$76,100
$53,000
33% 91%
Average Labor Cost Differential
AMERICAS
Established Emerging FutureEmergents
$58,200
$35,800 $29,400
63%
98%
Average Labor Cost Differential
APJ
Established Emerging FutureEmergents
$87,100
$46,900 $36,000
86% 142%
Average Labor Cost Differential
EMEA
Note: 1. The percentage differential is based on industry median data. Actual savings for companies will vary hugely depending on numerous factors such as percentile
positioning in the market, brand, type of work, talent pyramid structure, etc. 2. Zinnov Labor cost analysis modeler has been used to arrive at the data. All data has been gathered from historical compensation surveys, expert interviews,
discussion with HR leaders, HR council event, round table, thought leadership surveys, public and confidential information sources believed to be reliable 3. Data does not include benefits, bonuses, variable pay components, allowances, reimbursements, travel incentives, stock options, Restricted Stock Units (RSU)
and other country specific regulatory costs which are considered to be a part of the total compensation 4. The model does not take into consideration any skill specific base salary inflation, growth rate & other outlier situations which will skew the base salary data
$101,100 $87,100 $58,200
$76,100 $46,900 $35,800
$53,000 $36,000
$29,400
Americas EMEA APJ
Future Emergents
Emerging
Established
Zinnov 10
SUMMARY – LABOR COST COMPARISONS
Average Engineering Labor Cost, 2011 - Americas
Source: Zinnov Labor cost tracker, Zinnov cost analysis modeler 2011
ESTBLISHED
Salary Austin Atlanta Bay Area Boston Chicago Dallas Detroit Los Angeles Raleigh-Cary
Engineering $97,050 $102,410 $114,250 $113,580 $110,500 $87,560 $80,000 $106,130 $88,600
Salary Minneapolis Montreal New York San Diego Seattle Toronto Vancouver Washington
D.C.
Engineering $97,850 $87,400 $121,960 $115,000 $108,000 $91,650 $88,500 $109,460
Salary Bogota Boise Boulder Brasilia Broomfield Buenos Aires Pittsburgh,
PA Fairfax Florence
Engineering $46,840 $85,500 $85,000 $65,300 85600 $37,700 $95,400 $102,100 $84,750
Salary Fremont Ft.
Lauderdale Guadalajar
a Honolulu Mexico City
Oklahoma City
San Juan Santiago São Paulo San Jose,
Costa Rica
Engineering $114,650 $97,750 $38,870 $87,300 $44,400 $83,870 $57,600 $82,860 $75,330 $29,300
EMERGING
Salary Davenport Guayaquil Lima Lincoln Managua Rio de Janeiro
Santiago de Querétaro
Santo Domingo
Wichita
Engineering $83,700 $36,400 $25,600 $76,150 $33,500 $64,200 $35,000 $45,000 $77,750
FUTURE EMERGENT
Zinnov 11
SUMMARY – LABOR COST COMPARISONS
Average Engineering Labor Cost, 2011 - EMEA
Source: Zinnov Labor cost tracker, Zinnov cost analysis modeler 2011
ESTBLISHED
Salary Brussels Cambridge Copenhagen Dubai Frankfurt Geneva
Engineering $85,990 $85,500 $94,760 $84,200 $87,100 $85,200
Salary Haifa Helsinki London Munich Nice Tel Aviv
Engineering $84,600 $86,100 $86,000 $92,100 $87,500 $86,000
Salary Bucharest Bratislava Budapest Cairo Dublin Durban Johannesburg Amman
Engineering $37,200 $36,200 $33,680 $23,600 $70,000 $62,500 $64,500 $26,700
Salary Kiev Kharkov Moscow Prague Ra'Anana St. Petersburg Warsaw
Engineering $35,750 $46,200 $53,300 $43,300 $75,000 $46,350 $48,750
Salary Sofia
Engineering $38,000
EMERGING
FUTURE EMERGENT
Zinnov 12
SUMMARY – LABOR COST COMPARISONS
Average Engineering Labor Cost, 2011 - APJ
Source: Zinnov Labor cost tracker, Zinnov cost analysis modeler 2011
ESTBLISHED
Salary Bangalore Beijing Chennai Guangzhou Hong Kong Kawasaki NCR
Engineering $35,000 $40,600 $32,000 $42,000 $91,500 $83,400 $34,000
Salary Seoul Shanghai Singapore Sydney Taipei Tokyo
Engineering $56,500 $40,600 $74,500 $84,600 $54,200 $87,600
Salary Dalian Hyderabad Pune Selangor Shenzhen
Engineering $38,000 $32,400 $33,100 $42,500 $39,800
Salary Chandigarh Chengdu Coimbatore Colombo
Engineering $28,500 $36,800 $29,000 $28,500
FUTURE EMERGENT
Salary Hochiminh City Kolkata Metro Manila Penang Xiamen
Engineering $31,400 $30,000 $24,700 $35,600 $36,100
EMERGING
Zinnov 13
SUMMARY - COST OF LIVING Vs. QUALITY OF LIFE
Locations in EMEA have the highest cost of living index, while the American cities lead in quality of life index
Source: Zinnov Location and talent framework
85.6 69.9 61.6
105.3 90.5
79.4
Established Emerging FutureEmergents
AMERICAS EMEA APJ Average Cost of Living Index Vs. Quality of Life Index, 2011
82.2 68.6 59.4
84.7 71.8 64.2
Established Emerging FutureEmergents
88.4 75.6 66.0
102.1
78.8 75.1
Established Emerging FutureEmergents
Quality of Life Index Cost of Living Index
85.6 88.4 82.2
69.9 75.6 68.6
61.6 66 59.4
Americas EMEA APJ
Established Emerging Future Emergents
105.3 102.1 84.7
90.5 78.8 71.8
79.4 75.1
64.2
Americas EMEA APJ
Cost of Living Index, 2011 Quality of Life Index, 2011
Zinnov 14
SUMMARY - COST ESCALATION - AMERICAS
From a labor cost perspective, locations in North America form a cluster around USD 80,000 – USD 100,000
Source: Zinnov Labor Cost Model
• Labor Cost represented above is Average Median Labor Cost per FTE for Engineering professionals across all experience levels for year 2011
• Projected Labor Cost Growth Rates have been calculated using Zinnov’s proprietary forecasting model. The growth rates represented here are Cumulative Annual Growth Rates for 2012-2016
• The bubble size corresponds to the relative size of the talent pool in Product Development Software + Product Development Hardware in each city
Labor Cost per FTE (USD)
AMERICAS
70,000 320,000
Size of Talent Pool
5,000
Lima
Atlanta Boulder
Boston Davenport
Dallas
Seattle Vancouver
Wichita
Toronto
Austin
Lincoln
Pittsburgh
Oklahoma City
Guadalajara Santiago
Buenos Aires
Bay Area
0%
2%
4%
6%
8%
10%
12%
14%
$20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000
Lab
or
Sala
ry G
row
th R
ate
(C
AG
R -
%)
Zinnov 15
Bucharest
Bratislava
Budapest
Sofia
Cairo
St. Petersburg
Tel Aviv
Moscow Dublin
Prague
Kiev
0%
4%
8%
12%
16%
$15,000 $25,000 $35,000 $45,000 $55,000 $65,000 $75,000 $85,000
Lab
or
Sala
ry G
row
th R
ate
(CA
GR
- %
) SUMMARY - COST ESCALATION - EMEA
Emerging locations in EMEA form a cluster around USD 32,000 – USD 52,000
Source: Zinnov Labor Cost Model
Labor Cost per FTE (USD)
EMEA
37,000 80,000 6,000
• Labor Cost represented above is Average Median Labor Cost per FTE for Engineering professionals across all experience levels for year 2011
• Projected Labor Cost Growth Rates have been calculated using Zinnov’s proprietary forecasting model. The growth rates represented here are Cumulative Annual Growth Rates for 2012-2016
• The bubble size corresponds to the relative size of the talent pool in Product Development Software + Product Development Hardware in each city
Size of Talent Pool
Zinnov 16
Taipei
Bangalore
Pune
Beijing
Hyderabad
Metro Manila
Selangor
Xiamen
Chengdu
Dalian
Coimbatore
Penang
Chandigarh
Chennai
0%
4%
8%
12%
$22,000 $32,000 $42,000 $52,000
Lab
or
Sala
ry G
row
th R
ate
(C
AG
R -
%)
SUMMARY - COST ESCALATION - APJ
Both established and emerging locations in APJ form a cluster around USD 32,000 - USD 42,000
Source: Zinnov Labor Cost Model
Labor Cost per FTE (USD)
APJ
• Labor Cost represented above is Average Median Labor Cost per FTE for Engineering professionals across all experience levels for year 2011
• Projected Labor Cost Growth Rates have been calculated using Zinnov’s proprietary forecasting model. The growth rates represented here are Cumulative Annual Growth Rates for 2012-2016
• The bubble size corresponds to the relative size of the talent pool in Product Development Software + Product Development Hardware in each city
37,000 80,000 6,000
Size of Talent Pool
Zinnov 17
SUMMARY - ENGINEERING ACTIVITY - AMERICAS
The established locations in US have end-to-end product ownership with main focus on upstream activities such as conceptualization and design
Source: Zinnov Location and talent framework
PDLC Heat Map
Conceptualization Design Development Testing Support
Prototype Design/ Architecture
Technology Evaluation
Prototype Development
Prototype Validation
Concept Definition
Concept Evaluation
Requirement Gathering & Analysis
Software Architecture
High-Level Design of Product Concept
Feature Definition
Project Planning
Re-Engineering & Migration
Requirement Management
Program Management
Product Development
Product Maintenance
Project Management
Regression Testing
Testing Automation
Product Validation/ Acceptance
Unit/Interface Testing
Component/Feature Testing
Technical Support (Level 3 & 4)
Professional Services
Documentation
Technical Support (Level 1 & 2)
Performance Benchmarking
1 Bay Area
2 Atlanta
3 Seattle
4 San Diego
5 Austin
6 Los Angeles
7 Boston
8 Vancouver
9 Toronto
10 Raleigh-Cary
1 Bay Area
2 Austin
3 Atlanta
4 Seattle
5 Raleigh-Cary
6 Boston
7 Los Angeles
8 San Diego
9 Toronto
10 Dallas
1 Bay Area
2 Atlanta
3 Seattle
4 San Diego
5 Austin
6 Los Angeles
7 Boston
8 Vancouver
9 Toronto
10 Raleigh-Cary
1 Bay Area
2 Raleigh-Cary
3 San Diego
4 Seattle
5 Austin
6 Atlanta
7 Pittsburgh
8 Minneapolis
9 Dallas
10 Los Angeles
1 Buenos Aires
2 Brasilia
3 Bogota
4 Rio de Janeiro
5 Davenport
6 Santiago
7 San Jose, Costa Rica
8 Puerto Rico
9 Lincoln
10 Guadalajara
Top Locations
Zinnov 18
SUMMARY - ENGINEERING ACTIVITY - EMEA
A few high cost locations have total product ownership and serve as a design center along with development and testing
Source: Zinnov Location and talent framework
PDLC Heat Map
Conceptualization Design Development Testing Support
Prototype Design/ Architecture
Technology Evaluation
Prototype Development
Prototype Validation
Concept Definition
Concept Evaluation
Requirement Gathering & Analysis
Software Architecture
High-Level Design of Product Concept
Feature Definition
Project Planning
Re-Engineering & Migration
Requirement Management
Program Management
Product Development
Product Maintenance
Project Management
Regression Testing
Testing Automation
Product Validation/ Acceptance
Unit/Interface Testing
Component/Feature Testing
Technical Support (Level 3 & 4)
Professional Services
Documentation
Technical Support (Level 1 & 2)
Performance Benchmarking
1 Tel Aviv
2 Cambridge
3 Nice
4 Haifa
5 Frankfurt
6 London
7 Munich
8 Helsinki
9 Brussels
10 Geneva
1 Tel Aviv
2 Cambridge
3 Haifa
4 Nice
5 St. Petersburg
6 Munich
7 Helsinki
8 Brussels
9 Dublin
10 Budapest
1 Tel Aviv
2 Cambridge
3 Nice
4 Haifa
5 Frankfurt
6 London
7 Munich
8 Helsinki
9 Brussels
10 Geneva
1 Prague
2 Moscow
3 Dublin
4 St. Petersburg
5 Budapest
6 Bratislava
7 Bucharest
8 Ra'Anana
9 Kiev
10 Warsaw
1 Prague
2 Moscow
3 Dublin
4 St. Petersburg
5 Sofia
6 Bratislava
7 Bucharest
8 Ra'Anana
9 Kiev
10 Warsaw
Top Locations
Zinnov 19
SUMMARY - ENGINEERING ACTIVITY - APJ
Total product ownership seldom occurs in low cost locations; major focus is on downstream activities such as development, testing and support
Source: Zinnov Location and talent framework
PDLC Heat Map
Conceptualization Design Development Testing Support
Prototype Design/ Architecture
Technology Evaluation
Prototype Development
Prototype Validation
Concept Definition
Concept Evaluation
Requirement Gathering & Analysis
Software Architecture
High-Level Design of Product Concept
Feature Definition
Project Planning
Re-Engineering & Migration
Requirement Management
Program Management
Product Development
Product Maintenance
Project Management
Regression Testing
Testing Automation
Product Validation/ Acceptance
Unit/Interface Testing
Component/Feature Testing
Technical Support (Level 3 & 4)
Professional Services
Documentation
Technical Support (Level 1 & 2)
Performance Benchmarking
1 Tokyo
2 Seoul
3 Taipei
4 Singapore
5 Bangalore
6 Beijing
7 Hong Kong
8 Kawasaki
9 Sydney
1 Bangalore
2 Beijing
3 Seoul
4 Tokyo
5 Taipei
6 Shanghai
7 Guangzhou
8 Singapore
9 Sydney
10 NCR
1 Tokyo
2 Seoul
3 Taipei
4 Singapore
5 Bangalore
6 Beijing
7 Hong Kong
8 Kawasaki
9 Sydney
1 Bangalore
2 Beijing
3 Shanghai
4 Singapore
5 Hyderabad
6 Selangor
7 Metro Manila
8 Hong Kong
9 Chengdu
10 Dalian
1 Pune
2 Hyderabad
3 Chennai
4 Penang
5 Xiamen
6 Coimbatore
7 Colombo
8 Shenzhen
9 Selangor
10 Hochiminh City
Top Locations
Zinnov 20
SUMMARY - SKILLS AVAILABILITY - AMERICAS
North America is a hub for software product development, whereas South America is fast emerging as major IT services center
Source: Zinnov Location and talent framework
Product Development - Software Product Development - Hardware
IT Services
Atlanta
Austin
Bay Area
Boston
Dallas
Buenos Aires
Guadalajara Oklahoma City
Seattle
Vancouver
Santiago
Davenport
Lima Lincoln
Wichita
Toronto
Pittsburgh
The area has skills available in all 3 categories
Mexico City
Chicago
Detroit
Los Angeles
Raleigh-Cary
Montreal
New York
San Diego
Washington D.C.
Bogota
Boise
Brasilia
Boulder
Fairfax
Florence
Fremont
San Juan
Sao Paulo Honolulu
Ft. Lauderdale
San Jose, Costa Rica
Zinnov 21
SUMMARY - SKILLS AVAILABILITY - EMEA
Western Europe has well established locations for software product development talent, where as eastern Europe is fast emerging as destination for IT services
Source: Zinnov Location and talent framework
Product Development - Software Product Development - Hardware
IT Services
Frankfurt Tel Aviv
Bratislava
Bucharest
Cairo
Kiev
St. Petersburg
The area has skills available in all 3 categories
Moscow
Brussels
Cambridge
Budapest
Munich
Copenhagen
Dubai
Geneva
Haifa Helsinki
London
Nice
Prague
Warsaw
Kharkov Ra’Anana
Amman
Durban
Dublin
Johannesburg
Zinnov 22
SUMMARY - SKILLS AVAILABILITY - APJ
Established locations in APJ have high availability of talent in PDS and PDH, where as emerging locations are majorly focused on IT Services
Source: Zinnov Location and talent framework
Product Development - Software Product Development - Hardware
IT Services
Bangalore Beijing
Chennai
Taipei
Dalian
Hyderabad
Pune
Selangor Chandigarh
Chengdu
Coimbatore
Metro Manila
Penang Xiamen
The area has skills available in all 3 categories
Seoul
Guangzhou
Hong Kong
Tokyo
Kawasaki
NCR
Shanghai
Singapore
Sydney
Shenzhen
Colombo Hochiminh City
Kolkata
Zinnov 23
SUMMARY - R&D TALENT SUITABILITY HEAT MAP - AMERICAS
In terms of overall R&D talent suitability, Bay Area, San Diego and Seattle are the most suitable locations
Source: Zinnov Location and talent framework
Cities Development Testing Product Management Overall
Austin
Atlanta
Bay Area
Boston
Chicago
Dallas
Detroit
Los Angeles
Raleigh-Cary
Minneapolis
Montreal
New York
San Diego
Seattle
Toronto
Vancouver
Washington D.C. 3.0
3.5
3.5
4.0
4.0
3.0
3.0
3.5
4.0
4.0
3.0
3.5
3.0
4.0
4.5
4.0
4.0
3.0
3.0
3.0
4.0
4.0
3.0
3.0
3.5
4.0
3.5
3.0
3.5
3.0
3.5
4.5
3.5
3.5
3.5
3.0
3.5
4.0
4.0
3.5
3.0
3.0
3.5
3.5
2.5
3.0
3.0
3.5
4.5
3.5
4.0
3.2
3.2
3.3
4.0
4.0
3.2
3.0
3.3
3.8
3.7
2.8
3.3
3.0
3.7
4.5
3.7
3.8
Established Locations
Zinnov 24
SUMMARY - R&D TALENT SUITABILITY HEAT MAP - AMERICAS
Amongst the emerging locations, Fremont and Boulder are most suitable, closely followed by Broomfield, Pittsburgh and Davenport
Source: Zinnov Location and talent framework
Cities Development Testing Product Management Overall
Bogota
Boise
Boulder
Brasilia
Broomfield
Buenos Aires
Pittsburgh, PA
Fairfax
Florence
Fremont
Ft. Lauderdale
Guadalajara
Honolulu
Mexico City
Oklahoma City
San Jose
San Juan
Santiago
São Paulo
Davenport
Guayaquil
Lima
Lincoln
Managua
Rio de Janeiro
Santo Domingo
Wichita
Santiago de Queretaro 1.0 1.0 1.0 1.0
0.5 2.5
1.0 0.5
2.5 1.0 1.0
0.5 1.0
2.0 1.0
2.0 1.0
2.0 3.0 3.0 3.0
2.0 1.0
3.0 1.0
3.5 1.0 1.0
2.0 2.5 2.5 2.5
2.0 3.0
2.0 2.0
3.5 3.0 3.0
2.5 2.5 2.5 2.5
2.0 2.0
3.0 3.5
3.0 3.0
3.5 3.5
3.0 3.0
4.0 3.0 3.0
2.0 0.5 0.5 0.5 0.5
2.0 0.5 0.5
2.0 1.0 1.0
0.5 0.5
1.0 0.5
2.0 1.0 1.0
3.5 3.0
2.0 2.0
1.0 2.0
0.5 2.0
3.0 0.5
2.0 1.3 1.3 1.3
1.0 2.5
1.2 1.0
2.7 1.7 1.7
1.2 1.3
1.8 1.3
2.0 1.3
2.0 3.3
3.0 2.7
2.5 1.8
2.7 1.5
3.2 2.3
1.5
Emerging and Future Emergent Locations
Zinnov 25
SUMMARY - R&D TALENT SUITABILITY HEAT MAP – EMEA
In EMEA, Israel has emerged as the top location in terms of R&D suitability, closely followed by Cambridge in UK
Source: Zinnov Location and talent framework
Cities Development Testing Product Management Overall
Brussels
Cambridge
Copenhagen
Frankfurt
Geneva
Haifa
Helsinki
London
Munich
Nice
Tel Aviv 4.0
3.5
3.5
4.0
3.5
4.0
3.5
3.5
3.5
3.5
3.5
3.5
3.0
3.0
3.0
3.5
3.5
3.0
3.0
3.0
3.5
3.0
3.5
3.0
3.0
3.0
3.0
3.5
3.5
3.0
3.0
3.5
3.0
3.7
3.2
3.2
3.3
3.3
3.7
3.3
3.2
3.2
3.5
3.2
Established Locations
Zinnov 26
SUMMARY - R&D TALENT SUITABILITY HEAT MAP – EMEA
St. Petersburg and Moscow in Russia are fast catching up with other established locations in development and testing
Source: Zinnov Location and talent framework
Cities Development Testing Product Management Overall
Bucharest
Bratislava
Budapest
Cairo
Dubai
Dublin
Durban
Johannesburg
Amman
Kiev
Kharkov
Moscow
Prague
Ra'Anana
St. Petersburg
Warsaw
Sofia 1.5
2.0
3.5
3.5
2.5
3.0
2.0
2.5
1.5
3.0
3.0
3.0
2.5
2.0
3.0
2.5
2.5
2.5
2.5
3.5
3.5
3.0
3.5
2.5
2.5
1.5
2.5
3.0
3.0
2.5
2.0
3.5
2.5
2.5
1.0
0.5
3.0
3.0
1.0
3.0
0.5
1.0
0.5
1.0
1.5
3.0
2.5
1.0
2.5
1.5
1.5
1.7
1.7
3.3
3.3
2.2
3.2
1.7
2.0
1.2
2.2
2.5
3.0
2.5
1.7
3.0
2.2
2.2
Emerging and Future Emergent Locations
Zinnov 27
SUMMARY - R&D TALENT SUITABILITY HEAT MAP – APJ
Seoul and Tokyo lead the overall R&D talent suitability index, closely followed by Taipei, Bangalore and Beijing
Source: Zinnov Location and talent framework
Cities Development Testing Product Management Overall
Bangalore
Beijing
Chennai
Guangzhou
Hong Kong
Kawasaki
NCR
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo 4.0
4.0
3.0
3.5
3.5
4.0
3.0
3.5
3.5
3.0
3.0
4.0
4.0
4.0
4.0
3.0
3.5
3.5
4.0
3.0
3.5
3.5
3.0
3.0
4.5
4.5
4.0
3.5
3.0
3.0
3.0
4.0
2.5
3.5
3.0
2.5
2.5
3.0
3.0
4.0
3.8
3.0
3.3
3.3
4.0
2.8
3.5
3.3
2.8
2.8
3.8
3.8
Established Locations
Zinnov 28
SUMMARY - R&D TALENT SUITABILITY HEAT MAP – APJ
Low cost locations in India and China are fast emerging as hubs for development and testing
Source: Zinnov Location and talent framework
Cities Development Testing Product Management Overall
Dalian
Hyderabad
Pune
Selangor
Shenzhen
Chandigarh
Chengdu
Coimbatore
Colombo
Hochiminh City
Kolkata
Metro Manila
Penang
Xiamen 2.5
2.0
2.5
2.0
2.5
2.0
2.0
2.5
1.5
3.0
2.5
3.0
3.0
2.5
3.0
2.5
2.5
2.0
2.5
2.0
2.5
3.5
2.0
3.5
2.5
3.5
3.0
3.0
1.5
1.0
1.0
1.0
1.0
0.5
1.0
1.5
0.5
2.0
1.0
2.0
2.0
1.5
2.3
1.8
2.0
1.7
2.0
1.5
1.8
2.5
1.3
2.8
2.0
2.8
2.7
2.3
Emerging and Future Emergent Locations
Zinnov 29
Buenos Aires Guadalajara Oklahoma City Santiago Pittsburgh Boulder
3,240 4,160 4,440 3,330
12,720
4,360 4,100 4,500 5,500
3,750
13,500
5,000
2007 2011
SUMMARY – R&D TALENT POOL – AMERICAS
The installed talent base has grown significantly in the emerging American cities in last five years (1/2)
Source: Zinnov Location and talent framework
R&D Talent Pool Numbers for Established Cities in Americas
Austin Atlanta Bay Area Boston Dallas Seattle Toronto Vancouver
23,520 66,240
241,820
64,680 46,160 34,050 36,750 8240
27,000 76,020
329,000
71,400 49,000 43,500 50,000 9100
2007 2011
3.5%
8%
2.5% 2.5%
3.5%
2.5% 1.5%
Davenport Lima Lincoln Wichita
1,480 2,940 2,170 2380 1,600
4,800 2,350 2,525
2007 2011
2% 13% 2%
8%
3% 1.5% 6% 2%
1.5%
5.5% 3.5%
Emerging Cities Future Emergent Cities
Zinnov 30
Buenos Aires Guadalajara Oklahoma City Santiago Pittsburgh Boulder
10,775
2,370 4,270
2,570
7,390
3,650
18,200
4,000 5,000 4,500
8,000
3,800
2007 2011
SUMMARY – IT SERVICES TALENT POOL – AMERICAS
The installed talent base has grown significantly in the emerging American cities in last five years (2/2)
Source: Zinnov Location and talent framework
IT Services Talent Pool Numbers for Established Cities in Americas
Austin Atlanta Bay Area Boston Dallas Seattle Toronto Vancouver
14,410
37,840
72,320
39,000 26,650
33,320 28,850
8710
15,000
46,000
84,600
42,900 30,000
37,500 33,750
9800
2007 2011
1%
4%
3%
3%
5% 2.4%
3%
Emerging Cities
Davenport Lima Lincoln Wichita
2,600
5,920
1,900 2000 3,300
10,000
2,500 2,525
2007 2011
6%
14%
7%
Future Emergent Cities
4%
15% 6%
14%
14%
2%
4% 10%
Zinnov 31
SUMMARY – R&D TALENT POOL – EMEA
Cities in Central and Eastern European countries have emerged as major locations for outsourcing R&D activities (1/2)
Source: Zinnov Location and talent framework
R&D Talent Pool Numbers for Emerging Cities in EMEA
Tel Aviv
10,730 13,300
2007 2011
Bucharest Bratislava Budapest Cairo Dublin Kiev Prague Moscow St. Petersburg
5,270 3,100
11,700
3,300 5,700
3900 3500
14,600
9,700 8,000
4,500
20,700
4,670
8,500
6200 5100
22,700
17,000
2007 2011
10% 10%
11% 9% 12%
Sofia
3,400 5,000
2007 2011
Established Cities Future Emergent Cities
10%
11%
15% 12%
15%
5.5%
Zinnov 32
SUMMARY – IT SERVICES TALENT POOL – EMEA
Cities in Central and Eastern European countries have emerged as major locations for outsourcing R&D activities (2/2)
Source: Zinnov Location and talent framework
IT Services Talent Pool Numbers for Emerging Cities in EMEA
Tel Aviv
6,540 7,800
2007 2011
Bucharest Budapest Bratislava Cairo St. Petersburg Kiev
15,470
27,760
4,100
8,680
14,460
5,200
30,000 33,750
6,000
14,670
29,000
7,871
2007 2011
5% 19% 18%
10%
Sofia
4,400
6,800
2007 2011
Established Cities Future Emergent Cities
11.5%
14%
11%
4.5%
Zinnov 33
SUMMARY – R&D TALENT POOL – APJ
Bangalore (India) in APAC region has emerged as a leading location in terms of talent pool number, followed by Taipei (Taiwan) (1/2)
Source: Zinnov Location and talent framework
Bangalore Chennai Beijing Taipei
63,760
7,570
47,520 48,820
80,500
11500
60,000 64,000
2007 2011
R&D Talent Pool Numbers for Future Emergent Cities in APAC
Chandigarh Chengdu Coimbatore Metro Manila Penang Xiamen
420
4,250 2,830
15,280
7,310 5,460
500
6,690 4,000
20,790
8,390 8,000
8%
9% 12%
4%
10% 4%
Dalian Pune Hyderabad Selangur
3,860
23,350
14,060
7,850 5,870
36,740
22,130
11,500
2007 2011
Established Cities Emerging Cities
6%
11%
6% 7%
11%
12%
12%
10%
Zinnov 34
SUMMARY – IT SERVICES TALENT POOL – APJ
Bangalore (India) in APAC region has emerged as a leading location in terms of talent pool number, followed by Taipei (Taiwan) (2/2)
Source: Zinnov Location and talent framework
Bangalore Chennai Beijing Taipei
111,210
50,100
114,430
33,760
175000
107400
150000
38000
2007 2011
IT Services Talent Pool Numbers for Future Emergent Cities in APAC
Chandigarh Chengdu Coimbatore Metro Manila Penang Xiamen
7,710
31,300
2,650
18,570
10,170 5,000
13500
52860
5500
38500
12360 24000
20%
20%
14%
15% 48%
5%
Dalian Pune Hyderabad Selangur
16,900
67,820
47,140 32,900
30590
140640
91400
48200
2007 2011
Established Cities Emerging Cities
12%
21%
7%
3% 16%
20%
18%
10%
35 Zinnov
35 35
SUMMARY - INNOVATION
Emphasis and focus on Innovation/IP creation is increasing globally
Source: Interviews with globalization leaders, Zinnov portfolio analysis framework, Zinnov R&D Council and Zinnov city analysis framework
CHINA
• China, having established itself as the factory for the world, is fast transforming into an innovation hub.
• Baidu, the Chinese language search engine, has over 75% market share in China. It directly competes with Google and Yahoo in search market. It is listed in NASDAQ1 and has a market capitalization of over US $45 billion.
INDIA
• India is fast transforming itself from the back office of the world to a R&D hub. The IT industry is moving from being service driven to one driven by product innovation. India has over 670 MNC R&D centers operating in the country.
• MakeMyTrip is a leading Indian online platform for travel reservations. One in every twelve domestic flight tickets booked is from MakeMyTrip. The company was recently listed in NASDAQ and was valued at over US $1 billion.
ISRAEL
• Israel is well known for it’s R&D with more than double the average number of engineers than U.S per 10,000 employees. It is rated second only to Silicon Valley for it’s startup ecosystem. Israel has more than 70 companies listed in NASDAQ.
• A few of the successful high tech companies from Israel that are listed in NASDAQ include NICE systems, Eltek, Comverse, ECI Telecom.
SOUTH AMERICA
• South America is known for it’s innovation in agricultural productivity, aerospace industry and offshore petroleum production.
• Embraer is the world’s leading aircraft manufacturer. It has over 5,000 aircrafts operating in 92 countries. It is also a market leader for commercial jets of up to 120 seats. Similarly, Petro bras is another one of the leading energy companies.
USA
• Tier-2 cities in U.S, such as Boulder, are emerging as innovation hubs.
• Colorado is a hub for clean tech and IT startups. Advanced Micro labs is an analytical instrumentation company dedicated to pioneering in-line microchip measurements for clear water markets. The company has been awarded US $2 million grants from National Science Foundation.
36 Zinnov
36 36
TABLE OF CONTENTS
Note:
Top 100 Cities 1
Key Findings - Summary 2
City Profiles 3
Appendix - Definitions & Methodology 4
Zinnov 37
City Profile - Atlanta
Atlanta is the most populous city in the US state of Georgia, it is the cultural and economic center of the region
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Georgia, USA
City Population 420,003
Area 343 square km
Official Language English
Exchange Rate NA
Cost of Living Index* 89.8
Unemployment Rate 11.6%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 8,500
Software Product Development 67,520
IT Services 46,000
• Employment in high tech sector contributes to about 5.2% of the overall jobs in Atlanta.
• Approximately 50-60% of high tech employment in Atlanta MSA is concentrated among large companies.
Image Source- www.fim-medical.com
Zinnov 38
City Profile - Atlanta
Many companies in Atlanta have a presence in tech support and IT services sectors
Source: Zinnov Location and talent framework
Established Companies
• More than 90,000 students are enrolled in primary, secondary, and high schools in Atlanta. • Around 40,000 students are enrolled in undergraduate courses and approximately 14,000 students are enrolled in post graduate
courses. • Atlanta is home to around 150 research centers which are mostly affiliated to Georgia Institute of Technology or Emory University.
Education and Research Scenario
IBM Infor Cloud Sherpas Tectonic Network, Inc
ACS Accenture Soltech Inc Deloitte
McKesson Symcor Inc Elavon, Inc Volt Information Sciences
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 72,140
3 to 7 Years 95,200
7 to 10 Years 115,000
More than 10 Years 137,800
Index Value
Rent 41.5
Groceries 75.1
Restaurant 63.9
Transport Since 1999, Hartsfield- Jackson Atlanta International Airport has been the world's busiest airport.
Health Atlanta has over 13,000 physicians and 12,300 beds in 52 hospitals.
Catastrophic Risks In Atlanta, tornado activity is above and earthquake activity is significantly below the nation’s average.
Tech Parks/Govt. Incentives Companies that have their headquarters in Georgia (prior to Jan 1, 2009) are entitled to tax credits.
Zinnov 39
City Profile – Bay Area
The Bay Area is comprised of nine counties and has a skilled work force of over 3.6 million people
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location California, USA
City Population 7,188,637
Area 22,838 square km.
Official Language English
Exchange Rate NA
Cost of Living Index* 101
Unemployment Rate 10.23%
Talent Availability
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Image Source- sddefenselawyers.com
Talent Trends, 2011
Category Talent Pool
Hardware Product Development 131,600
Software Product Development 84,600
IT Services 197,400
• The overall attrition in the California zone was close to 16% for the year 2010 which was close to the US average.
• There is an inbound migration of talent due to unparalleled opportunities in the High Tech sector.
Zinnov 40
City Profile – Bay Area
Higher wage in the Bay Area has resulted in software companies moving to other locations
Source: Zinnov Location and talent framework
Established Companies
• The Bay Area has about 500,000 students enrolled in higher education. • 25 community colleges, 48 WASC accredited institutions and 43 state approved institutions are present in Bay Area. • The Bay Area is home to the world’s leading research universities such as Stanford and the University of California at Berkley.
Education and Research Scenario
Hewlett-Packard Google Cisco Systems Oracle
Apple eBay Juniper Networks Symantec
Super Micro Computer Yahoo Brocade Communications Adobe Systems
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 82,170
3 to 7 Years 109,680
7 to 10 Years 128,530
More than 10 Years 157,100
Index Value
Rent 95
Groceries 86
Restaurant 82
Transport San Francisco International Airport handles more than 40 million passengers &1,300 flights a day.
Health The Bay Area healthcare system includes 87 hospitals, 9 medical centers and 4 university clinics
Catastrophic Risks California falls under the earthquake prone zone which caused up to US $55 billion damage since 1971
Govt. Incentives Incentives like the California New Jobs Tax Credits and SEZ Payroll Expense Tax Credit exist.
Zinnov 41
City Profile - Boston
Greater Boston Area is the tenth largest Metropolitan Area in the United States
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Massachusetts, USA
City Population 617,594
Area 12,105 square km.
Official Language English
Exchange Rate NA
Cost of Living Index* 108
Unemployment Rate 6.4%
Talent Availability
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Image Source- neuroinformatics2011.org
Talent Trends, 2011
Category Talent Pool
Hardware Product Development 36,250
Software Product Development 35,150
IT Services 42,900
• The average employee turn over in the New England area was 13.6% per annum for the Year 2010, which was lower than U.S average of 16%.
• Hiring time has increased slightly with the drop in employment due to recession.
Zinnov 42
City Profile - Boston
Greater Boston Area has an access to highly skilled talent due to the presence of World renowned educational institutions
Source: Zinnov Location and talent framework
Established Companies
• There are more than 100 colleges and universities located in the Greater Boston Area, with more than 250,000 students attending college in Boston and Cambridge alone.
• There are close to 260 high schools and 220 middle schools in the Greater Boston Area. • Boston has access to talent from world renowned institutes of higher education like Harvard Business School and MIT
Education and Research Scenario
Hewlett-Packard Company EMC Dell Oracle
Intel Corporation AMD IBM General Electric Aviation
Boston Scientific BBN Technologies ITA Software Sun Microsystems
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 80,000
3 to 7 Years 105,500
7 to 10 Years 127,300
More than 10 Years 153,300
Index Value
Rent 71
Groceries 120
Restaurants 83.2
Transport In 2010, over 27 million passengers and 300,000 flights used Logan International Airport in Boston.
Crime Boston has a high crime rate which is currently decreasing due to the efforts of the local police.
Catastrophic Risks Boston’s tornado and earthquake activity though less than the state is higher than the US average.
Govt. Incentives Businesses can receive credit for wages paid (~10%) to qualified research and development employees
Zinnov 43
City Profile - Bratislava
Bratislava is the capital of Slovakia and has a large talent pool working in IT services and BPO sector
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Southwestern Slovakia
City Population(2011 E) 488,859
Area 367.6 square km
Official Language Slovak
Exchange Rate(Sept. 2011) 0.74 Euro (EUR) per US $
Cost of Living Index* 70.1
Unemployment Rate 4.6%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 1,000
Software Product Development 2,500
IT Services 6,000
• The attrition in BPO services is around 13%-15%. • The attrition in IT services is lower and around 10%. • The attrition in Engineering services is very low at
4%-6%.
Image Source- http://www.msagency.sk
Zinnov 44
City Profile - Bratislava
Bratislava is the political, cultural, and economic center of the country
Source: Zinnov Location and talent framework
Established Companies
• Bratislava has over 70,000 students enrolled in higher education (university level). • There are more than16,000 students enrolled in engineering and 12,000 students enrolled in business studies in Bratislava. • The research and development expenditure of the Bratislava region¹ was around US $210 million in 2009. • 75% of the research and development expenditures in the Bratislava region¹ were spent on natural science and engineering in 2009.
Education and Research Scenario
Accenture AT&T CSC Amazon
Adastra Lenovo Datalan SAP
Alcatel Lucent IBM Henkel Slovensko Siemens IT Solutions
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 16,180
3 to 7 Years 26,180
7 to 10 Years 41,250
More than 10 Years 66,000
Index Value
Rent 29.1
Groceries 58.19
Restaurant 49.4
Transport Bratislava is well connected to major European cities.
Health There are more than 18 healthcare establishments in Bratislava with more than 4,500 beds.
Catastrophic Risks Bratislava is safe from natural disasters.
Tech Parks/Govt. Incentives The Slovak government provides income tax relief to foreign firms which invest over US $6.76 million.
Zinnov 45
City Profile - Bucharest
Bucharest is a prime destination for IT and technical support services in Eastern Europe
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Southeast Romania
City Population (2011 E) 1,943,981
Area 228 square km
Official Language Romanian
Exchange Rate 3.10 Romanian Lei (RON) per US $
Cost of Living Index* 54.8
Unemployment Rate 2.2%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 1,500
Software Product Development 6,500
IT Services 30,000
• Attrition rates for business process outsourcing and shared service centers was between 30-40% in 2010.
• Attrition rates for older BPO centers has decreased to 20-30% on an average in 2010.
Image Source- www.stichtingwerkgroepurgenta.nL, Luventicus
Zinnov 46
City Profile - Bucharest
It is the most industrialized and economically developed city in Romania
Source: Zinnov Location and talent framework
Established Companies
• There are 16 public universities and 19 private universities in Bucharest. • There are 65 research institutes covering 14 specialized scientific divisions in both technical and natural sciences. • In 2009, around 400,000 students were enrolled in universities. Out of this, around 216,100 students were enrolled in state owned
universities and around 183,900 were enrolled in private universities
Education and Research Scenario
Adobe Microsoft Intel Capgemini
Freescale Ericsson Oracle Orange
HP SAP IBM Genpact
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 19,000
3 to 7 Years 28,960
7 to 10 Years 43,400
More than 10 Years 67,100
Index Value
Rent 15.5
Groceries 44.3
Restaurants 40.5
Transport Bucharest has the largest transport network in Romania, and one of the largest in Europe.
Crime Bucharest's crime rate is rather low in comparison to other Eastern European capital cities.
Catastrophic Risks Located on a seismic fault area, Bucharest is a city prone to low intensity earthquakes.
Tech. Park Baneasa Business and Technology Park lies between the International Airport and the city center.
Zinnov 47
City Profile - Cairo
Cairo is the capital of Egypt and the largest city in the Arab world and Africa
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Northeast Egypt
City Population (2011 E) 8,495,493
Area 214.2 square km
Official Language Arabic
Exchange Rate 5.96 Egyptian pounds(EGP) per US $
Cost of Living Index* 59.8
Unemployment Rate 12%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 2,220
Software Product Development 2,450
IT Services 14,670
• Attrition in IT services and product dev. domains is due to brain drain of talent to other countries
• Enterprise technical support has higher turnover rate compared to customer support due to increased demand for these skills.
Image Source- Britannica, Luenticus
Zinnov 48
City Profile - Cairo
It is the prime destination for IT services and BPO sector
Source: Zinnov Location and talent framework
Established Companies
• The graduating pool from Egypt’s universities (~330,000 students) makes it one of the largest low cost offshore outsourcing destinations.
• There are 23 research institutes in Cairo. • Total available talent with multilingual skills was ~31,000 in 2010 in Egypt.
Education and Research Scenario
HP ITworx Delta Software Teleperformance
IBM Oracle Microsoft Vodafone
Mahindra Satyam EMC SySD Soft Alcatel Lucent
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 11,270
3 to 7 Years 18,800
7 to 10 Years 30,700
More than 10 Years 41,900
Index Value
Rent 20.4
Groceries 52.8
Restaurants 48.8
Transport Cairo Airport served more than 15,000 aircraft movements and over 16 million passengers in 2010
Health There are around 100 hospitals and 13,000 doctors in Cairo. Air pollution causes health problems.
Catastrophic Risks At present, Egypt is under military rule of the Supreme Council of the Armed Forces.
Govt. Incentives By 2012, about 40,000 new workers are expected to be trained as per the govt. training initiative.
Zinnov 49
City Profile - Chandigarh
Chandigarh is an attractive location for voice-based BPO services
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location North India
City Population(2011) 1,054,686
Area 114 square km
Official Language Hindi, Punjabi, English
Exchange Rate 50.9 Rupees (INR) per US $
Cost of Living Index* 36.5
Unemployment Rate(2010) 10.5%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 100
Software Product Development 400
IT Services 13,500
• The attrition rate is 30-40% for voice-based activities, and 20% for non voice-based activities.
• Attrition in the software industry is around 20-25%. This is due to the migration of fresh talent to NCR and other IT hubs in Southern India after gaining work experience.
Chandigarh
Zinnov 50
City Profile - Chandigarh
Chandigarh has a significant number of resources in the IT services sector
Source: Zinnov Location and talent framework
Established Companies
• Chandigarh has two renowned engineering colleges with approximately 400 students graduating every year. • Over 150 Ph.D. students graduate from the Punjab University in Chandigarh. • Chandigarh has over 150 schools affiliated to the central board of secondary education. Chandigarh has 11 primary schools, 23
secondary schools and 15 senior secondary schools.
Education and Research Scenario
IBM Rolta India Net Solutions Quark
Spice Telecom Bharti Airtel Simtech Care Fusion
Tech Mahindra Ericsson Damco Solutions Edifecs
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 8,100
3 to 7 Years 23,240
7 to 10 Years 31,900
More than 10 Years 60,200
Index Value
Rent 7.8
Groceries 32.3
Restaurant 20.8
Transport Chandigarh is well connected domestically but does not have international flights
Health Chandigarh is ranked second in India in the primary health care index ranking.
Catastrophic Risks Chandigarh lies in Zone IV, an active region for potential earthquakes.
Tech Parks/Govt. Incentives Technology companies in SEZs are provided exemptions on corporate tax, income tax, excise tax etc.
Zinnov 51
City Profile - Chengdu
Chengdu is a major outsourcing hub in China and has attracted investments from several Fortune 500 companies in the last decade
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Sichuan, Central China
City Population (2011 E) 14.04 million
Area 12,132 square km
Official Language Mandarin
Exchange Rate 6.3 Yuan Renminbi per US $
Cost of Living Index* 45.2
Unemployment Rate 3%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 4,520
Software Product Development 2,160
IT Services 52,860
• The attrition rate in the software industry is approximately 10%.
• Due to an increasingly competitive job market, the attrition rate is expected to increase in the medium to long term.
Image Source- www.chinahighlights.com
Zinnov 52
City Profile - Chengdu
Chengdu has well developed infrastructure facilities and lower operating costs when compared to other Tier-1 cities in China
Source: Zinnov Location and talent framework
Established Companies
• Chengdu has over 100,000 students graduating each year. Of this number, 50,000 are in science and technology programs. • Chengdu has 42 universities. The total number of students on campus is 590,000. • Chengdu is home to 44 technical schools with 60,000 students on campus. • There are 37 national specialized laboratories and 9 national engineering research centers.
Education and Research Scenario
IBM HiSoft Siemens Oracle
Huawei Symantec Wipro Motorola Microsoft
Intel Neusoft Tencent NEC
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 14,400
3 to 7 Years 30,300
7 to 10 Years 48,100
More than 10 Years 69,100
Index Value
Rent 10.9
Groceries 51.9
Restaurants 25.8
Transport Chengdu is well connected to major domestic and international cities across the globe.
Health There are more than 4,000 hospitals and community healthcare institutions in Chengdu.
Catastrophic Risks In 2008, the region experienced an earthquake of 7.9 magnitude on the Richter scale.
Govt. Incentives Enterprises operating within the special zones in Chengdu enjoy a favorable income tax rate of 15%.
Zinnov 53
City Profile - Chennai
Chennai has the fourth largest Gross Metropolitan Product in India
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Tamil Nadu, India
City Population(2011 E) 4,681,087
Area 174 square km
Official Language Tamil, Hindi, English
Exchange Rate 50.9 Rupees (INR) per US $
Cost of Living Index* 34.6
Unemployment Rate 10.7%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 6,530
Software Product Development 4,960
IT Services 107,430
• Attrition rate has increased in the BFSI vertical of IT services.
• Attrition rate in the city ranges from 15 – 23% depending on the type of work within IT services and consulting.
Image Source- wikipedia.org
Chennai, India
Zinnov 54
City Profile - Chennai
A significant number of educational institutions across various disciplines in Tamil Nadu allow ample employee base for non voice services
Source: Zinnov Location and talent framework
Established Companies
• Tamil Nadu offers a large talent pool of over a hundred thousand engineers from world class universities, making it a good location for the IT/BPO operations
• Chennai is home to over 15 universities thereby establishing itself as a hub for higher education • Chennai has 27 higher secondary schools, 38 high schools, 124 middle schools, 141 primary schools and 30 kindergarten schools
Education and Research Scenario
RBS HSBC Renault Nissan American Megatrends
Nokia Bank of New York Temenos India Pvt .Ltd. Vestas
Maersk Barclays Paypal Caterpillar
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 9,800
3 to 7 Years 27,300
7 to 10 Years 37,800
More than 10 Years 64,400
Index Value
Rent 10.6
Groceries 33.5
Restaurant 19
Transport Chennai has an excellent Local, National and International Transportation System
Crime Chennai is one of the four major cities in the country that reported a lower crime rate than the state
Catastrophic Risks Chennai lies in Zone III seismic category and has experienced a few earthquakes in the past
Tech Parks/Govt. Incentives Tamil Nadu has a proactive government that is perceived to encourage growth of the IT-BPO industry
Zinnov 55
City Profile - Coimbatore
IT, financial services, retail marketing and manufacturing are the key sectors employing the majority of the talent pool in Coimbatore
Note : *Index based on a scale where cost of living in New York is 100; ** As of January 2012 Source: Zinnov Location and talent framework
City Statistics
City Location Tamil Nadu, South India
City Population 10,42,588
Area 105.5 sq.km.
Official Language Tamil, Hindi and English
Exchange Rate** 50.9 Rupees (INR) per US $
Cost of Living Index* 33.2
Unemployment Rate 8%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 1,000
Software Product Development 3,000
IT Services 5,500
• Attrition in the city is 15-30% lower than in developed cities but has been on the rise over the past few years due to the entry of new firms
• Around 20% of the talent employed in the IT-BPO industry goes for higher education after 2-3years of work experience
Image Source- wikipedia.org
Coimbatore, India
Zinnov 56
City Profile - Coimbatore
Research institutes in Coimbatore focus on sugar, textile, clinical research and computer engineering
Source: Zinnov Location and talent framework
Established Companies
• Coimbatore has about 40 engineering colleges and 115 arts and science colleges are located in corporation limit. • Coimbatore has more than 30,000 engineering students and 75,000 arts and science graduates studying in various institutions. • Coimbatore has about 18 polytechnics and 36 industrial training institutes (ITI) with an annual output of 6,780 and 1,961 graduates
respectively.
Education and Research Scenario
Cognizant Vestige HP Cbay Systems
TCS Nous Info Systems Sierra Infosys (P) Limited Robert Bosch
Tata Elxsi Mascot Pricol Technologies CADS
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 7,700
3 to 7 Years 22,600
7 to 10 Years 32,500
More than 10 Years 61,700
Index Value
Rent 8.2
Groceries 31.5
Restaurant 18.5
Transport Coimbatore international flight service is comparatively less developed than the domestic service
Health There are 103 hospitals and medical centers in and around Coimbatore with a capacity of 5000 beds.
Catastrophic Risks Coimbatore has not seen any major natural calamities and has stable climatic conditions.
Tech Parks/Govt. Incentives The Government of Tamil Nadu has given multiple incentives to the IT-BPO industry.
Zinnov 57
City Profile - Dalian
Dalian is a fast emerging city of China with a significant talent pool for IT services
Note : *Index based on a scale where cost of living in New York is 100 Source: Zinnov Location and talent framework
Regional Statistics
Region Location Liaoning, China
Region Population(2011 E) 6,310,000
Area 13,237 square km
Official Language Mandarin
Exchange Rate 6.3 Yuan Renminbi per US $
Cost of Living Index* 43
Unemployment Rate 2.7
Talent Availability Talent Trends, 2010
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 3,420
Software Product Development 2,450
IT Services 30,590
• The attrition rate in Dalian is relatively high especially in BPO and technical /customer support areas.
• Dalian has a large talent pool of multi-lingual employees speaking Chinese, English, Japanese and Korean .
Image Source: wikipedia.org
Dalian, China
Zinnov 58
City Profile - Dalian
Dalian is managed by a municipal government that promotes the growth of the IT sector
Source: Zinnov Location and talent framework
Established Companies
• There are31 colleges and universities, 103 secondary vocational schools and 80 high schools in Dalian. • Universities in Dalian produce more than 20,000 IT graduates annually. • The under graduate student population in Dalian is around 250,000. • NeuSoft and other MNCs have started training centers to improve the quality of work force in Dalian.
Education and Research Scenario
IBM Genpact Fidelity Oracle
HP Intel NeuSoft Sanyo
Accenture SAP Cisco Siemens
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 14,875
3 to 7 Years 31,400
7 to 10 Years 49,800
More than 10 Years 71,500
Index Value
Food 73
Clothing 86
Transport 28
Housing 25
Transport Dalian International Airport is the busiest in Northeast China and has several international flights.
Health There were 2.71 doctors and 5.16 hospital beds for every thousand people in 2010.
Catastrophic Risks Apart from a severe drought in 1999, Dalian has not suffered from any major incidents in its past.
Govt. Incentives Corporate income tax rate for hi-tech enterprises is at a discounted rate of 15% .
Zinnov 59
City Profile - Davenport
Davenport is ranked 15 among US cities in terms of cost of doing business by Forbes
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Iowa, USA
City Population(2011 E) 105,349
Area 168.1 square kilometers
Official Language English
Exchange Rate NA
Cost of Living Index* 99.4
Unemployment Rate 7.4%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 200
Software Product Development 1,400
IT Services 3,300
• The attrition rate in the Midwest region of the United States is around 18%. The attrition rate in the IT sector is around 13%-15%.
• Talent pool migration is observed across the different cities of the Quad Cities region.
Image Source- www.fim-medical.com
Davenport
Zinnov 60
City Profile - Davenport
It has a large number of IT and BPO companies
Source: Zinnov Location and talent framework
Established Companies (Quad Cities)
• The Quad Cities have around 148 public schools which include 100 elementary, 25 intermediate and 23 high schools. • There are around 40 colleges and universities within a 90 mile radius of the Quad Cities. • There are around 20,000 undergraduate students and about 5,500 graduate students enrolled in universities. • In 2009, 35.6% of residents above 25 years held associates degrees, 26.7% held bachelors degrees and 7.8% held graduate degrees.
Education and Research Scenario
Cobham Mission Systems DRS Systems Visa International Alpine Access
Best Buy Aquent IT Solutions United Health Group AT&T
SAIC John Deere CTG Rent-A-Car
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 62,300
3 to 7 Years 76,400
7 to 10 Years 92,790
More than 10 Years 111,500
Index Value
Housing 110
Healthcare 97.2
Utilities 81.5
Transportation 100.6
Transport Quad City International Airport has daily flights to Atlanta, Detroit, Chicago, Denver and Minneapolis.
Health The Genesis Medical Center has over 500 beds, 3,000 staff, 450 physicians and over 1,000 volunteers.
Catastrophic Risks Located on the banks of the Mississippi River, Davenport witnesses frequent floods.
Tech Parks/Govt. Incentives Tax credits are provided to off-set the cost incurred to locate, expand or modernize an Iowa facility.
Zinnov 61
City Profile - Guadalajara
Guadalajara is considered a "city of the future" due to its youthful population, low unemployment rate and a large number of recent foreign investments
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Jalisco, Mexico
City Population 1,494,134
Area 151 square km
Official Language Spanish
Exchange Rate 13.47 Mexico Pesos per US $
Cost of Living Index* 66.3
Unemployment Rate 5.5%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 1,000
Software Product Development 3,500
IT Services 4,000
• Companies in Guadalajara normally face an attrition rate of 5%-10%.
• For entry level IT programmers wages have stayed relatively low. The wages are between US $400 and $800 per month.
Image Source- Guadalajara Maps and Orientationa
Zinnov 62
City Profile - Guadalajara
Guadalajara is the main producer of software, electronic and digital components in Mexico
Source: Zinnov Location and talent framework
Established Companies
• More than 90,000 students are enrolled in primary, secondary, and high schools in Atlanta. • Around 40,000 students are enrolled in undergraduate courses and approximately 14,000 students are enrolled in post graduate
courses. • Atlanta is home to around 150 research centers which are mostly affiliated to Georgia Institute of Technology or Emory University.
Education and Research Scenario
IBM HP Oracle Teletech
Intel Siemens VDO TCS Continental
Freescale Accenture iGate Bank of America
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 19,000
3 to 7 Years 32,500
7 to 10 Years 49,670
More than 10 Years 60,100
Index Value
Rent 12
Groceries 61
Restaurant 46.5
Transport In 2010, the airport handled 6.9 million passengers showing an increase of 7.9% from 2009.
Crime Guadalajara has relatively low crime rates however illegal drug trade and kidnapping are rampant
Catastrophic Risks Guadalajara's political and economic stability has been a positive factor in attracting investment.
Govt. Incentives Complete exemption from payroll tax is given to new companies.
Zinnov 63
City Profile - Hyderabad
Hyderabad produces the second largest pool of engineers in India and has one of the best research infrastructures within local universities
Note : *Index based on a scale where cost of living in New York is 100; ** As of January 2012 Source: Zinnov Location and talent framework
City Statistics
City Location Andhra Pradesh, India
City Population(2011 E) 4,010,238
Area 527 square km
Official Language Telugu, Hindi and English
Exchange Rate** 50.9 Rupees (INR) per US $
Cost of Living Index* 32.5
Unemployment Rate 7.6%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 11,280
Software Product Development 10,850
IT Services 91,400
• Competition is high which increases the tendency for employees to leave jobs for higher pay.
• A number of new companies entering Hyderabad is reducing due to the slight increase in political risks.
Image Source- wikipedia.org
Hyderabad, India
Zinnov 64
City Profile - Hyderabad
Hyderabad is well connected to major international locations like London, New York and Hong Kong, with approximately 160 flights a day catering to these destinations
Source: Zinnov Location and talent framework
Established Companies
• The University of Hyderabad was recently ranked first within the Indian Subcontinent in the R&D arena. • Increasingly, due to its reputation as a leading IT-BPO destination, the city is attracting talent from across the country. • There are over 17 public research institutions including 3 related to nuclear energy and 4 defense research labs in the city. • There are approximately 930 degree colleges in Andhra Pradesh (AP) with around 460,000 students.
Education and Research Scenario
Electronic Arts JDA HSBC Virtusa
DE Shaw Teradata Franklin Templeton Wipro
GE Cordys Wells Fargo L&T Infotech
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 9,700
3 to 7 Years 26,000
7 to 10 Years 38,500
More than 10 Years 67,000
Index Value
Rent 7.5
Groceries 31.3
Restaurant 19
Transport Hyderabad is well connected to major international locations with 160 flights a day
Crime In 2009, Hyderabad ranked 19th out of 35 Indian cities in crime rate.
Catastrophic Risks As per UNDP’s classification Hyderabad lies in a moderate damage risk zone for earthquakes.
Govt. Incentives The liberal government policies have played a vital role in attracting significant foreign investments.
Zinnov 65
City Profile – Kiev
Kiev is Ukraine’s largest city, both in terms of population and area. It is Ukraine’s center for business and commercial activities
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location North Central Ukraine
City Population 2,797,553
Area 839 square km
Official Language Ukrainian
Exchange Rate 7.91 Hyrvnia (UAH) per US $
Cost of Living Index* 62.9
Unemployment Rate 8.1%
Talent Availability
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Image Source- http://www-db.in.tum.de
Talent Trends, 2011
Category Talent Pool
Hardware Product Development 620
Software Product Development 5,580
IT Services 7,870
• The salaries are 50-70% lower when compared to the US or Western Europe.
• Ukraine has a low attrition rate in IT sector when compared with other developing countries
Kiev
Zinnov 66
City Profile – Kiev
Ukraine is the fifth largest IT services exporter in the world
Source: Zinnov Location and talent framework
Established Companies
• Around 200,000 students enroll each year for higher education in Ukraine. The country is home to the fourth largest post-secondary graduate population in Europe.
• Scientific research is undertaken in many higher education institutes in Kiev. In addition, some institutes associated with the Ukrainian Academy of Sciences also undertake advanced research.
Education and Research Scenario
Wincor Nixdorf AG Lohika Hewlett Packard SAP AG
Microsoft Cisco IBS EPAM Systems
Aricent IBM GlobalLogic Ciklum
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 20,000
3 to 7 Years 29,400
7 to 10 Years 40,400
More than 10 Years 66,800
Index Value
Rent 35.4
Groceries 39
Restaurant 65.5
Transport Kiev is well connected to major international locations across Europe, America and Asia.
Crime Rate The level of street crime grew by 30% in 2009 when compared to 2008.
Catastrophic Risks The political situation has been strained in the past leading to tensions in the country.
Govt. Incentives The IT outsourcing industry enjoys the benefit of 0% VAT on exporting software development services.
Zinnov 67
City Profile - Lincoln
Lincoln, along with Omaha, is a prime destination for IT services and technical support
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Nebraska, USA
City Population 258,379
Area 195.2 square km
Official Language English
Exchange Rate NA
Cost of Living Index* 75
Unemployment Rate 3.6%
Talent Availability Talent Trends, 2010
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 350
Software Product Development 2,000
IT Services 2,500
• The Greater Omaha region added 17,500 jobs from 2000 to 2009.
• The competition for talent is stiff in IT and BPO industries in Lincoln and companies need to invest in attracting and retaining talent.
Image Source: bse.unl.edu
Zinnov 68
City Profile - Lincoln
The Nebraska Technology Park promotes collaboration between universities and private companies
Source: Zinnov Location and talent framework
Established Companies
• In Lincoln, over 38,000 people have a Bachelor’s degree and about 19,000 people have a graduate degree or higher. • Lincoln Public Schools (LPS) consist of 37 elementary schools, 11 middle schools, 6 high schools and 1 alternative high school. • LPS is renowned for providing a high quality of education. Expansion Management Magazine ranked public education in Lincoln in the
top five nationwide for quality.
Education and Research Scenario
Cabela’s ADP TEK systems Ameritas Life Insurance
Northrop Grumman LinkedIn Verizon Wireless American Express
Raytheon PayPal Lincoln Financial Group CSC
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 54,800
3 to 7 Years 67,500
7 to 10 Years 81,500
More than 10 Years 108,800
Index Value
Rent 30.5
Groceries 79.3
Restaurant 61.3
Transport The Lincoln Municipal Airport has daily departures to Atlanta, Chicago, Denver, Minneapolis, Memphis
Crime Lincoln has less violent crimes per 100,000 people when compared to similar sized cities in the US.
Catastrophic Risks Tornado activity in Lincoln is above the Nebraska state and National average.
Govt. Incentives Businesses that perform research and experimental activities are eligible for tax credits.
Zinnov 69
City Profile – Metro Manila
Metro Manila is a prime destination for call centers, BPO and technical support
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location National Capital Region, Philippines
City Population 12,578,783
Area 638 square km.
Official Language Filipino, English
Exchange Rate 43.2 Philippine Peso per US $
Cost of Living Index* 45.6
Unemployment Rate 7.3%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 5,810
Software Product Development 14,980
IT Services 38,500
• Leading BPO and tech support companies like Convergys, Stream Global Services, Sykes, SITEL and Teletech have large operations in Metro Manila.
• It has a very small base of installed talent for IT and product development.
Image Source- www.wikipedia.org
Zinnov 70
City Profile – Metro Manila
Metro Manila is well connected through two international airports
Source: Zinnov Location and talent framework
Established Companies
• Research activities are undertaken through university/departmental labs. • Metro Manila is home to over 200 high schools and middle schools with a total school population of 762,021. • Metro Manila is renowned for its research institutes like University of the Philippines Diliman, Philippine Nuclear Research Institute,
Southeast Asian Fisheries Development Center and National College of Public Administration and Governance
Education and Research Scenario
Tele Tech HTMT e Telecare Sitel
Convergys Sitel Telus Stellar Global Solutions
Accenture IBM Daksh Concentrix Corporation NCO
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 7,800
3 to 7 Years 17,100
7 to 10 Years 26,000
More than 10 Years 60,600
Index Value
Rent 14.1
Groceries 40.4
Restaurant 25.5
Transport Metro Manila is well connected to major International locations
Health The crime rate in Metro Manila has reduced consistently over the last few years
Catastrophic Risks A fault system runs along metro Manila’s east boundary, making the city susceptible to earthquakes
Tech Parks/Govt. Incentives Government is promoting entrepreneurship by reducing the rate of local business taxes by 50%.
Zinnov 71
City Profile – Mexico City
Mexico City is a prime destination for IT and BPO services
Note : *Index based on a scale where cost of living in New York is 100 Source: Zinnov Location and talent framework
City Statistics
City Location Federal District, Mexico
City Population 8,851,080
Area 1,485 square km
Official Language Spanish
Exchange Rate 13.47 Mexican Pesos per US $
Cost of Living Index* 69.5
Unemployment Rate 5.7%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Engineering - R &D ~ 17,000
IT ~ 70,000
BPO ~ 150,000
• Companies in Mexico City typically face an attrition rate of 5%-10%.
• Approximately 65,000 new IT professionals graduate from universities or technical schools every year.
• Mexico’s growing software and IT services sector consists of nearly 500,000 IT professionals.
Image Source- Mexico City Maps and Orientation
Zinnov 72
City Profile – Mexico City
Mexico City contributes to approximately 21% of Mexico’s Gross Domestic Product
Source: Zinnov Location and talent framework
Established Companies
• Mexico City offers world-class bilingual education at primary, secondary, and tertiary levels. • Mexico City has 580 public & private universities and academic institutions. It has the highest literacy rate in the country. • Mexico City accounts for 80% of the total R&D activities in the country. • More than one-third of all the patents in the country are awarded to companies and individuals in Mexico City.
Education and Research Scenario
Getronics Quarksoft Intel Genpact
Hildebrando Softek Accenture Neoris
Praxis T-Systems IBM ACS
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 24,000
3 to 7 Years 38,600
7 to 10 Years 55,400
More than 10 Years 68,200
Index Value
Rent 25.5
Groceries 66.34
Restaurant 50.48
Transport Mexico City is Mexico’s major transportation and shipping hub.
Health Mexico City is home to 844 hospitals and 13 national institutes of health.
Catastrophic Risks Mexico City is located in a seismic zone and prone to periodic earthquakes.
Tech Parks/Govt. Incentives The government provides a 30% tax credit for engineering & technology expenses.
Zinnov 73
City Profile – Oklahoma City
Oklahoma City is a prime destination for IT consulting and services
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Oklahoma, USA
City Population(2010) 580,000
Area 1,609 square km
Official Language English
Exchange Rate NA
Cost of Living Index* 63.4
Unemployment Rate 5%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 2,000
Software Product Development 3,500
IT Services 5,000
• With over 650,000 workers and nearly 120,000 students, the region can fulfill the talent needs of any company.
• Oklahoma's CareerTech System and the Training for Industry Program (TIP) have won national recognition.
Zinnov 74
City Profile – Oklahoma City
Oklahoma City ranks as one of the least expensive cities in the country
Source: Zinnov Location and talent framework
Established Companies
• Total student population is around 152,000. • Around 58,000 students are enrolled in universities and colleges in and around Oklahoma City. • The city has over 17 higher education colleges, universities and community colleges. • University of Oklahoma is one of the top ten institutions in Rhodes Scholar graduates.
Education and Research Scenario
ACS AT&T TEKsystems FIS
American Express Cisco Kelly Services Hewlett-Packard
Apex Systems Inc SAIC IKON Office Solutions GDH Consulting
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 62,730
3 to 7 Years 77,700
7 to 10 Years 92,900
More than 10 Years 112,400
Index Value
Rent 29.3
Groceries 95.4
Restaurant 60
Transport Oklahoma City is considered to be a transportation hub due to its strategic location in the US
Health Oklahoma City has one of the best healthcare systems in the country.
Catastrophic Risks Oklahoma City’s historical tornado activity is above national average.
Govt. Incentives SIP is designed to help companies looking to expand or relocate their operations in Oklahoma City.
Zinnov 75
City Profile – Penang
Penang is the second smallest state in Malaysia. It has the third-largest economy in Malaysia
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
Regional Statistics
Region Location Northwest Coast, Malaysia
Region Population 1,60,000
Area 1048 square km
Official Language Bahasa Malaysia, English
Exchange Rate 3.02 Malaysian Ringgits per US $
Cost of Living Index* 55.8
Unemployment Rate 2.4%
Talent Availability
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Image Source- enpower.se
Talent Trends, 2011
Category Talent Pool
Hardware Product Development 6,830
Software Product Development 1,550
IT Services 12,360
There is a higher concentration of R&D centers in Penang due to the close proximity to manufacturing hubs. This causes attrition in Penang to be higher when compared to Malaysia’s national levels
Zinnov 76
City Profile – Penang
The government provides incentives of 100% investment tax allowance for R&D companies with investments in the region
Source: Zinnov Location and talent framework
Established Companies
• In 2000, Penang had 8.9% of its population achieving tertiary level of education, and by 2010, this population grew to 22.5%. Penang has a larger educated population when compared to the other three states in the Northern Corridor Economic Region.
• The Higher Education Institutes (HEIs) include 23 public and 31 private universities
Education and Research Scenario
Intel JABIL Flextronics AMD
Motorola Seagate Altera MoBif
IBM Agilent Technologies PMC-Sierra Ideal Capital
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 15,000
3 to 7 Years 24,900
7 to 10 Years 40,300
More than 10 Years 69,100
Index Value
Rent 19.2
Groceries 63.9
Restaurant 28.6
Transport Penang has a fully developed transport infrastructure and connectivity via air, sea, rail and road.
Health Penang has around 2,000 beds in government hospitals and also has more than 10 private hospitals.
Catastrophic Risks Penang Island was hit by the tsunami in 2004, now tsunami warning systems have been installed.
Govt. Incentives Penang has 4 Free Trade Zones (FTZs) and 4 Industrial Parks
Zinnov 77
City Profile - Pune
Pune contributes to over 10% of the total IT-BPO exports from India
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Maharashtra, India
City Population(2010 E) 3,446, 330
Area 15,643 sq km
Official Language Marathi, Hindi and English
Exchange Rate 50.9 Rupees (INR) per US $
Cost of Living Index* 35
Unemployment Rate 8.4%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 12,500
Software Product Development 24,230
IT Services 140,640
• The attrition rate in Pune is marginally lower than Bangalore.
• Migrant workers from outside the state are paid at a higher salary at entry level job positions.
Image Source- http://joshiapte.com
Zinnov 78
City Profile - Pune
Pune is one of the most attractive investment destinations in India for R&D, IT and BPO services
Source: Zinnov Location and talent framework
Established Companies
• More than 481,328 students enroll in the University of Pune and its affiliated colleges every year. • Out of the 481,328 students, about 83% are in undergraduate programs, 16% are in postgraduate programs and 1% are enrolled in
doctoral programs. • There are over 25 science and technology related research institutes in Pune.
Education and Research Scenario
TCS Tech Mahindra L&T Infotech HSBC
Infosys KPIT Accenture Bank of New York
Wipro Cognizant Cygnus Amdocs
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 10,400
3 to 7 Years 27,800
7 to 10 Years 39,300
More than 10 Years 65,700
Index Value
Rent 10.5
Groceries 34.7
Restaurant 22.1
Transport Pune is well connected domestically but there are very few international flights from Pune.
Health There are around 360 hospitals within the city with the total number of beds around 6,000
Catastrophic Risks Pune lies in Zone IV seismic activity, which is the second most dangerous seismic zone in India.
Govt. Incentives The property tax will be levied on IT and ITeS units at par with residential rates (not commercial rates)
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City Profile - Selangor
Selangor is a prime destination for IT and Technical Support Services in Malaysia
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
State Statistics
State Location West Coast- Peninsular Malaysia
State Population(2011E) 5,411,324
Area 8,153 square km
Official Language Malay
Exchange Rate 3.02 Malaysian Ringgits per US $
Cost of Living Index* 59
Unemployment Rate 3%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 3,900
Software Product Development 7,600
IT Services 48,200
In Kuala Lumpur and Cyberjaya, the attrition rates are relatively higher in the BPO and IT services driven by availability of better opportunities and steady growth of the industry. Top reasons for job change are- Salary increments and better job related perks; Global exposure opportunities
Image Source- wikipedia.org
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City Profile - Selangor
Selangor is an education hub with the highest number of colleges and universities in the country
Source: Zinnov Location and talent framework
Established Companies
• A diverse student population, both local and international, provides a cosmopolitan and multicultural environment for education in Selangor
• Out of the total 1,794 higher education institutes in Malaysia, Selangor houses the highest number of establishments (373 or 20.8%) • Selangor has more than 20 public and private universities making central Selangor the largest higher education center in Malaysia.
Education and Research Scenario
IBM SAP Convergys HCL
HP Oracle HSBC EDS
Wipro Ericsson Maxis Intel
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 18,500
3 to 7 Years 30,700
7 to 10 Years 50,600
More than 10 Years 89,000
Index Value
Rent 19
Groceries 60
Restaurant 30
Transport Kuala Lumpur is well connected to major international cities across the globe.
Health The infant mortality rate in Selangor is 3.7 per 1,000 live births.
Catastrophic Risks Floods in Selangor are frequent and happen nearly once every year during the monsoon season.
Govt. Incentives Pioneer Status with tax exemption of 100% of its statutory income for a period of 5 years
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City Profile – St. Petersburg
Over 40% of the employed population in St. Petersburg has received a higher professional education
Note : *Index based on a scale where cost of living in New York is 100; ** Working population constitutes total labor force in Atlanta Source: Zinnov Location and talent framework
City Statistics
City Location North Russia
City Population 4,627,200
Area 1,439 square km
Official Language Russian
Exchange Rate 30.48 Ruble (RUB) per US $
Cost of Living Index* 68.9
Unemployment Rate 7.6%
Talent Availability
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Image Source- wikipedia.org
Talent Trends, 2011
Category Talent Pool
Hardware Product Development 15,000
Software Product Development 18,700
IT Services 28,960
• Moscow, closely followed by St. Petersburg are the leading locations of choice for IT companies setting up operations in Russia.
• IT Services in Russia is gaining attention due to growing domestic demand by SMBs and the government
St. Petersburg, Russia
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City Profile – St. Petersburg
St. Petersburg has the largest Russian port and processes up to 60% of the exports from Russia
Source: Zinnov Location and talent framework
Established Companies
• Currently, there are more than 1,000 kindergartens, 700 public schools and 70 vocational schools in St. Petersburg. • The number of organizations undertaking research in the city has declined from 429 in 2007 to 354 in 2009. • There were around 90,000 people engaged in research activities in 2004, this number has declined to approximately 80,000 in 2009.
Education and Research Scenario
AT Software DataArt EMC Motorola
HP Devexperts EPAM Systems Nokia Siemens Network
Intel Digital Design Google Quest Software
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 23,000
3 to 7 Years 36,900
7 to 10 Years 57,500
More than 10 Years 84,000
Index Value
Rent 32
Groceries 51.2
Restaurant 72.2
Transport St. Petersburg is part of the imp. transport corridor linking Scandinavia to Russia and Eastern Europe.
Health In 2010, there were 80 doctors , 100 medical personnel and 90 hospital beds per 10,000 people
Catastrophic Risks Storm surges from the gulf have caused over 300 floods in the city
SEZ Incentives Reduction of profit tax to 4.5% and tax relief on property, transportation and land tax for next 5 years.
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City Profile - Taipei
Taipei is a major global center for hardware product development and technical support sectors
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location North Taiwan
City Population 2,618,772
Area 272 square km
Official Language Mandarin - Chinese
Exchange Rate 29.8 Taiwan Dollar per US Dollar
Cost of Living Index* 61
Unemployment Rate 4%
Talent Availability Talent Trends, 2010
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 41,000
Software Product Development 23,000
IT Services 38,000
• In 2010, Taiwan’s average attrition rate in the High-Tech sector was 12%.
• Taipei has a large talent pool working on design, development and manufacturing of computer hardware.
Image Source: CIA factsheet
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City Profile - Taipei
Taiwan ranks high in healthcare, national security and in overall business environment
Source: Zinnov Location and talent framework
Established Companies
• Taipei has 27 colleges and universities, 7 medical schools, 10 large research institutes and 25 innovation driven incubators. • There are about 600,000 students studying in colleges and universities in Taipei. • About 170,000 students are enrolled in engineering programs. • English instruction is mandatory from elementary school onwards.
Education and Research Scenario
IBM Microsoft Samsung Accenture
HP Splashtop Intel Broadcom
Oracle Electronic Arts Evershine Service Group Nvidia
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 25,500
3 to 7 Years 39,400
7 to 10 Years 54,700
More than 10 Years 97,400
Index Value
Rent 24.1
Groceries 73.9
Restaurant 26.5
Transport Taoyuan International Airport is one of the busiest airports with connectivity to major cities worldwide
Health Taiwan has 18.77 physicians and 4.96 dentists per 10,000 people.
Catastrophic Risks Taiwan is prone to typhoons and earthquakes.
Govt. Incentives Enterprises headquartered in Taipei are entitled to various forms of tax deductions.
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City Profile - Toronto
More than 80% of the labor force in Toronto is employed by the services sector
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Ontario, Canada
City Population 2,855,000
Area 641 square kilometers
Official Language English and French
Exchange Rate 1.038 Canadian Dollar(CAD) per US $
Cost of Living Index* 106
Unemployment Rate 9.4%
Talent Availability Talent Trends, 2010
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 20,000
Software Product Development 30,000
IT Services 33,750
• Attrition rates in the Toronto region are around 12-13% per year.
• The demand for software engineers is expected to remain strong in the short and medium term.
Image Source: bse.unl.edu
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City Profile - Toronto
Toronto has a large number of IT, BPO and technology product companies
Source: Zinnov Location and talent framework
Established Companies
• A total of 320,000 students are enrolled in the various universities in Toronto . • 87,000 students graduate every year from the universities/colleges in Toronto. • Toronto Region is home to over 300 research institutes that are affiliated with academic institutions, research hospitals and
corporations.
Education and Research Scenario
IBM Microsoft EMC CSC
HP Cisco Systems Qualcomm CGI
Accenture Capgemini Quest Software Oracle
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 73,500
3 to 7 Years 84,700
7 to 10 Years 97,200
More than 10 Years 124,400
Index Value
Rent 53.5
Groceries 101.1
Restaurant 84.5
Transport Toronto Pearson International Airport is the largest and busiest airport in Canada.
Crime Toronto is one of the safest cities in North America. Crime rates are lower than other large cities.
Catastrophic Risks Toronto is relatively safe from catastrophic natural disasters.
Govt. Incentives Commercial and industrial property taxes in the City of Toronto are frozen for business investments.
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City Profile - Vancouver
Over the past five years, Vancouver’s economy has consistently outpaced the Canadian economy
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location British Columbia, Canada
City Population 642,843
Area 115 square km.
Official Language English, French
Exchange Rate 1.01 Canadian Dollar per US $
Cost of Living Index* 107.2
Unemployment Rate 6.2%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 2,100
Software Product Development 7,000
IT Services 9,800
Welcoming immigration policies contribute to the quality of Vancouver’s ICT workforce, a significant factor in Microsoft’s recent decision to open a software development operation in Greater Vancouver.
Image Source- vancouverhypertension2010.com
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City Profile - Vancouver
Vancouver is consistently ranked as the world’s most livable city by the Economist Intelligence Unit
Source: Zinnov Location and talent framework
Established Companies
• Vancouver is home to 18 high schools and 90 middle schools with a student population of 56,000. • Vancouver has 2 universities, 30 language training institutes and 58 software training institutes. • The city has a number of world renowned research institutes like University of British Columbia Farm, Simon Fraser University,
Bamfield Marine Station, TRIUMF and Peter Wall Institute for Advanced Studies
Education and Research Scenario
IBM Intel Broadcom SAP
Nokia Amazon CDC Kodak
Microsoft Netapp McKesson Ericsson
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 69,000
3 to 7 Years 82,000
7 to 10 Years 96,500
More than 10 Years 120,300
Index Value
Rent 61.1
Groceries 109.8
Restaurant 91.8
Transport Daily International flights to Asia, Europe, Oceania, the United States, and Mexico.
Health Vancouver is among the healthiest regions in Canada with a life expectancy of 82.5.
Catastrophic Risks Vancouver has been far from any major natural disasters.
Tech Parks/Govt. Incentives The federal corporate tax rate has been reduced from 37.8 per cent in 1980 to 15 per cent by 2012
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City Profile - Wichita
Wichita is the largest city in the state on Kansas
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Kansas, USA
City Population 383,142
Area 360 square km.
Official Language English
Exchange Rate NA
Cost of Living Index* 84
Unemployment Rate 7.2%
Talent Availability Talent Trends, 2011
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Category Talent Pool
Hardware Product Development 650
Software Product Development 1,875
IT Services 1,650
• Salaries would increase between 6% to 9% in the year 2012.
• For the Wichita area, the Center for Economic Development and Business Research is forecasting a 0.6 percent increase in employment for 2012.
Image Source- www.world-guides.com
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City Profile - Wichita
Wichita has four technical universities from which over 2500 students graduate every year
Source: Zinnov Location and talent framework
Established Companies
• Wichita is served by 8 unified school districts. • Over 50,000 students are enrolled in various public schools in the city. In addition to the public school districts, there are dozens of
private and parochial schools serving preschool through high school students, as well as those needing special education. • The Wichita area is served by fifteen colleges and universities including Wichita State University, Friends University etc.
Education and Research Scenario
Netapp Convergys ADP IHS Group
High Touch Inc. Alcatel- Lucent IBM Biztronics
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 59,300
3 to 7 Years 69,100
7 to 10 Years 83,500
More than 10 Years 105,900
Index Value
Rent 23.8
Groceries 86.4
Restaurant 51.4
Transport The nearest International Airport is located in Kansas City which is 300km from Wichita.
Health Wichita offers a number of medical facilities, including hospitals and stand alone medical facilities.
Catastrophic Risks Wichita has witnessed minor tornadoes, earthquakes and floods in last few years.
Tech Parks/Govt. Incentives Kansas law offers tax deductions for companies that make qualified capital investments.
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City Profile - Xiamen
Xiamen is a favored destination for BPO and IT services companies
Note : *Index based on a scale where cost of living in New York is 100; Source: Zinnov Location and talent framework
City Statistics
City Location Fujian, China
City Population 3,531,347
Area 1,565 square km
Official Language Mandarin, Cantonese
Exchange Rate 6.3 Yuan Renminbi per US $
Cost of Living Index* 47.9
Unemployment Rate 4%
Talent Availability
Competency Availability Quality Scalability
Hardware Eng.
Software Eng.
Tech Support
IT
IT Services & Consulting
Low Moderate High
Image Source- Xiamen Maos
Talent Trends, 2011
Category Talent Pool
Hardware Product Development 2,000
Software Product Development 6,000
IT Services 24,000
• The software talent pool in Xiamen has been growing at a rapid rate (over 30% ) in the past 3 years.
• Attrition of software engineers is high in Xiamen due to a high demand in this sector.
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City Profile - Xiamen
Xiamen’s world class infrastructure and favorable business climate makes it an attractive destination for foreign investments
Source: Zinnov Location and talent framework
Established Companies
• Xiamen has 20 universities and colleges with around 80,000 students studying in these institutions. • There are nearly 60,000 undergraduate students enrolled in Xiamen institutions at any given time. • There are 120 scientific research institutes in Xiamen with Xiamen University leading the way.
Education and Research Scenario
ABB Longtop Group Yamaha Motor Solutions Yamaha Motor Solutions
Anheuser Busch Jabra Fujitsu IT Services Fujitsu IT Services
Lenovo Teradata Crystal CG Crystal CG
Accessibility, Living Conditions and Business Climate
Compensation Data and Other Fixed Costs Experience Median Salary (US $)
0 to 3 Years 14,000
3 to 7 Years 29,600
7 to 10 Years 47,000
More than 10 Years 68,600
Index Cost(US $/Month)
Internet 24
Utilities 39.36
Apartment rent(per sq. mt.) 6.73
Transport Cost 15.6
Transport Xiamen’s airport has connectivity to 58 domestic and 17 international cities.
Health 1,100 health care institutions, 40 hospitals, 20 community health centers and around 80 clinics .
Catastrophic Risks Xiamen has experienced moderate earthquakes and tropical storms, but no major damages occurred
Govt. Incentives Companies developing software products are exempted from the VAT on selling those products.
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TABLE OF CONTENTS
Note:
Top 100 Cities 1
Key Findings - Summary 2
City Profiles 3
Appendix - Definitions & Methodology 4
94 Zinnov
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Product Development Software - The software engineers employed to design and develop software products (applications and middleware) used for enterprise, desktop, embedded and mobile platforms are classified under product development software talent pool
DEFINITION - ENGINEERING
Zinnov has defined engineering function into three categories as described below
Note: Definition as per “Zinnov Talent Neuron Solution” Taxonomy
Product Development Hardware - The computer hardware engineers who are employed to design and develop hardware and software (firmware, device drivers) functions of microprocessors, microcontrollers and other Very Large Scale Integrated Circuits are classified under the product development hardware engineering talent pool
IT Services - IT Services includes a broad range of services offered in Application Development (design and development of Enterprise application), Application Maintenance (supporting application to ensure high performance), Application Management (managing application for higher performance), Application testing ( testing application for high performance) and IT Infrastructure Management Services (design and maintenance of Enterprise IT infrastructure).
Product Development
Software ENGINEERING
Product Development
Hardware
IT Services
ENGINEERING- Engineering as a function has been sub divided into 3 categories: Product development software, Product development hardware and IT services. The specialists employed for the above services fall under the engineering talent pool
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95 95
DEFINITION - REGIONS
Zinnov has broadly classified the globe into 3 REGIONS for the simplicity of analysis and representations
Note: Definition as per “Zinnov Talent Neuron Solution” Taxonomy
AMERICAS REGION EMEA REGION APJ REGION
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METHODOLOGY
Zinnov evaluated 400+ cities worldwide, gathered key metrics and leveraged it to identify the most promising 100 cities for engineering practice
Source: Zinnov Location and talent framework
100 Cities worldwide
400+ cities worldwide evaluated Deep dive
Cost Infrastructure Competitive Landscape
University Ecosystem
Installed/Fresh Talent Pool
Technology Depth
Type of Work
Academia
Technology Firms
Industry Experts
IT Firms Zinnov
Knowledge Repository
Recruitment Agencies
Primary & Secondary Research
Industry Associations
Government Bodies
Over the past 10 years Zinnov has built a strong network in the technology industry 40+ Fortune 500 technology
companies are members of Zinnov R&D council
Trusted knowledge partner for government bodies
Zinnov Data Sources
Zinnov 97
METHODOLOGY
Zinnov has built strategic partnerships with various industry organizations across the globe which is effectively leveraged for our studies and reports
Source: Zinnov Location and talent framework
India
China
Israel
Eastern Europe
Vietnam
Brazil
Russia
Philippines
Egypt
US
Colombia
Argentina
Costa Rica
Guatemala
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METHODOLOGY: R&D TALENT SUITABILITY INDEX
Zinnov’s “Suitability Index” is derived by leveraging the following methodology
Source: Zinnov Location and talent framework
𝑓 𝑍𝑖𝑛𝑛𝑜𝑣 𝑆𝑢𝑖𝑡𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝐼𝑛𝑑𝑒𝑥 =
In𝑠𝑡𝑎𝑙𝑙𝑒𝑑 𝑏𝑎𝑠𝑒 𝑜𝑓 𝑡𝑎𝑙𝑒𝑛𝑡+
𝑇𝑦𝑝𝑒 𝑎𝑛𝑑 𝑞𝑢𝑎𝑙𝑖𝑡𝑦 𝑜𝑓 𝑤𝑜𝑟𝑘 𝑏𝑒𝑖𝑛𝑔 𝑑𝑜𝑛𝑒+
𝐿𝑒𝑣𝑒𝑙 𝑜𝑓 𝑜𝑤𝑛𝑒𝑟𝑠ℎ𝑖𝑝 𝑝𝑟𝑜𝑣𝑖𝑑𝑒𝑑 𝑡𝑜 𝑡ℎ𝑒 𝑐𝑒𝑛𝑡𝑒𝑟+
𝑇𝑒𝑐ℎ𝑛𝑜𝑙𝑜𝑔𝑦 𝐶𝑎𝑝𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑜𝑓 𝑡𝑎𝑙𝑒𝑛𝑡 (𝑄𝑢𝑎𝑙𝑖𝑡𝑎𝑡𝑖𝑣𝑒)+
𝐼𝑛𝑏𝑜𝑢𝑛𝑑 𝑡𝑎𝑙𝑒𝑛𝑡
• The objective is to analyze development, testing and product management activities across 100 shortlisted cities on the basis of key parameters as listed below
• A comparison rating has been provided to give a holistic view of the locations which are most suitable with respect to a specific skill set
Parameters considered to arrive at the “Zinnov Suitability Index”
Analysis Objective
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DRIVERS FOR THE EMERGENCE OF SELECTED LOCATIONS
Cost and labor arbitrage along with access to emerging markets are the key drivers for shift of operations to emerging locations
Source: Zinnov Location and talent framework
Saturation of market/talent pool in developed locations
Business continuity
Rise of new competitor’s intent on becoming global
Market liberalization and privatization
Growth of global networks making countries interdependent
Lower attrition rates
Drivers Post 2000
Cost arbitrage
Access to unsaturated and skilled talent pool
Innovations/Reverse innovations
Increase in global customers due to convergence of per capita income, lifestyles
& travel
Access/proximity to customers in emerging markets
Access to growth markets
Drivers which led to the emergence of these Locations
Zinnov 100
ADVANTAGES OF EMERGING CITIES
Emerging cities across the globe offer various advantages to the Companies as compared to the established cities
Source: Zinnov Location and talent framework
Advantages offered by Tier -2 Cities across the globe
Increased Business
Continuity
Larger Catchment for
Talent Pool
Lower
Attrition
Reduced Competition
Reduced Operating Expenses
• R&D presence in Tier-2 cities increases the business continuity of the company. The company can
continue it’s operations from Tier-2 locations if the primary location fails.
• Tier -2 location like Pune in India is less prone to natural calamities and terrorist attacks than NCR
and Bangalore.
• The attrition rate in Tier-2 locations such as Selangor in Malaysia is lesser than Kuala Lumpur.
Similarly the attrition rate in Chennai is lower than Bangalore.
• The attrition rate in many Tier-2 cities can be 30% lower than Tier -1 cities.
• The competition for talent in Tier-2 cities is less than that in Tier-1 cities.
• In India, Bangalore has the highest number of MNC R&D centers (312) but the competition for
talent is very high. Pune has a good installed talent pool (96 R&D centers) but the competition for
talent is lesser than in Bangalore.
• The overall operating expenses are much lower in Tier-2 cities than in Tier-1 cities around the world.
• The operating expenses in Tier-2 locations can be as much as 30% lower than Tier-1 cities.
• The cost of living in Austin and Colorado is much cheaper than other established locations like Bay
Area and Boston.
• The company can benefit from access to larger talent pool by opening centers in Tier-2 locations.
• Tier-2 cities like St. Petersburg in Russia, Xiamen in China benefit from a large talent pool and
presence of multinational companies in the region.
Zinnov LLC
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