next frontier cities for technology talent
DESCRIPTION
Zinnov reviewed over 400 global cities and identified 40 locations which are expected to be Next Frontiers in the future for deep dive analysisTRANSCRIPT
Zinnov LLC CONFIDENTIAL This report is solely for the use of Zinnov and Zinnov Clients. No part of it may be circulated, quoted, or reproduced for distribution without prior written permission from Zinnov
Zinnov LLC
Next Frontier Cities for Technology Talent – Executive Summary
December, 2012
This data is based on Zinnov Talent Neuron platform. Zinnov leverages a variety of research techniques to gather this information including technology resources like crawlers and page index technology. Most of the data available is through Zinnov’s proprietary analysis and recruiter interviews in these geographies.
Zinnov 1
400+ cities worldwide evaluated
METHODOLOGY
Zinnov reviewed over 400 global cities and identified 40 locations which are expected to be Next Frontiers in the future for deep dive analysis
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
Established Locations (45 cities)
Emerging Locations (40 cities)
Location Bucketing
Parameters used for city
bucketing and selection
NORTH AMERICA SOUTH AMERICA EMEA APJ
Boise Jacksonville Asuncion Montevideo Ankara Kiev Chongqing Islamabad
Guatemala City Roanoke Caracas Porto Alegre Brasov Lodz Coimbatore Nagpur
Managua San Salvador Florianopolis Recife Casablanca Lviv Colombo Tianjin
Wichita Santo Domingo Guayaquil Santa Cruz Cluj-Napoca Rabat Foshan Wuhan
Tucson Lima Durban Sofia Hanoi Johor Bahru
Kharkhiv Limerick
Next Frontiers (80 cities)
Deep Dive
40 cities worldwide
2 Zinnov 2
EMERGING LOCATIONS
Next frontier cities are spread across the world and offer several benefits when compared to established cities
Oklahoma City
Fremont
Ft. Lauderdale
Boulder
Fairfax Florence
Sao Paulo Mexico city
Buenos Aires
Bucharest
Budapest
Bratislava
Cairo
Dublin
Prague
Dubai
Johannesburg
Moscow
Amman
St. Petersburg
Dalian
Shenzhen
Selangor
Hyderabad
Pune
Roanoke Tucson
Boise
San Salvador
Jacksonville
Limerick
Bucharest
Lodz
Sofia
Kharkiv
Casablanca
Brasov
Durban
Lviv
Rabat
Kiev
Johor Bahru
Foshan
Coimbatore
Chongqing
Colombo
Nagpur
Islamabad
Note: The locations mentioned in previous slide still remain as established locations Source: Focus group discussion with Zinnov clients, Zinnov R&D council, Zinnov Location and Talent Framework
Guatemala City Wichita
Managua
Santo Domingo
Cluj-Napoca Asuncion
Caracas
Porto Alegre
Florianopolis
Recife
Santa Cruz
Lima
Guayaquil
Montevideo
Ankara
Wuhan
Tianjin
Hanoi
Pittsburg Broomfield
San Juan Santiago
Eme
rgin
g Lo
cati
on
s N
ext
Fro
nti
ers
3 Zinnov
3 3
Companies- Market Maturity Heat map
Hanoi, Lima, Guatemala City, and Chongqing are the go to “Next Frontier” locations considering cost and market maturity parameters
Note: Total cost calculated for an employee with 3 – 7 years of prior work-ex in that respective domain Source: Zinnov location and talent modeler, Skill Analysis framework, Client interviews
Scale: 0 is least suitable & 10 is most suitable
$220,600
$22,000 $100,000
1
Total Cost
8
Ma
rket
Ma
turi
ty
4.5
Chongqing
Porto Alegre
Durban
Tuscon
Jacksonville
Boise
Wichita Roanoke
Ankara
Lods
Hanoi Lima
Guatemala City
Colombo
Wuhan
Guayaquil, Islamabad, Nagpur, Santo Domingo, Caracas, Santa Cruz, Brasov
Khavkiv
Coimbatore
Kiev
Lviv
Foshan Rabat Cluj-Napoca
Sofia
Tianjin
Recife Limerick
Florianopolis
Managua
Asuncion
Montevideo
San Salvador
Casablanca
SUMMARY - SKILLS AVAILABILITY
Top 10 cities in Next frontier list has diverse capability to offer which is suitable across R&D, IT and Shared Services functions
Research and Development IT Services
Shared Services
Recife
Chongqing
Kharkiv
Wichita Ankara
Kiev
Durban
The area has skills available in all 3 categories
Foshan
Montevideo
Cluj-Napoca
Jacksonville
Florianópolis
Asuncion
Lima
Rabat
Coimbatore
Porto Alegre
Limerick
Caracas
Guatemala City
Guayaquil
Casablanca
Managua
Boise Hanoi
Brasov
Lviv
4 4 Note: The locations mentioned in previous slide still remain as established locations Source: Focus group discussion with Zinnov clients, Zinnov R&D council, Zinnov Location and Talent Framework
Roanoke
San Salvador
Santa Cruz
Sofia
Tianjin
Tucson
Wuhan
Zinnov 5
SUMMARY – TOTAL COST COMPARISONS- R&D
Next frontier cities in APJ region can provide 126% more cost benefits when compared to established cities in that geography
Source: Zinnov Talent Neuron
Average Total Cost Differential, 2011
Established Emerging FutureEmergents
$210,200
$177,000
$145,000
19% 45%
Average Total Cost Differential
AMERICAS
Established Emerging FutureEmergents
$66,340
$41,400 $29,400
60%
126%
Average Total Cost Differential
APJ
Established Emerging FutureEmergents
$155,800
$127,800
$95,600
22% 63%
Average Total 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 Total 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. 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
$210,200 $155,800 $66,340
$177,000 $127,800
$41,400
$145,000 $95,600
$29,400
Americas EMEA APJ
Future Emergents
Emerging
Established
6 6
SUMMARY
Next frontier cities are viable for small to medium size operations; These cities are best aligned to provide first movers advantage
Source: Interviews with globalization leaders, Talent Neuron
Understanding the Next Frontiers across the globe
Cost Savings
Access to Talent
Risk Mitigation
Multi Location Strategy
Identify functions and teams which are best suited for next frontier city operations
Set realistic expectations with business on the advantages and challenges of the next
frontier cities
Plan for management overheads which will be higher for the first 18 months
There are few challenges companies are facing today in next frontier cities.
Understanding these challenges and having a strong risk mitigation plan is very essential
for successful operations
Many companies have adopted a multicity location strategy. It is important to
understand the comparative strengths of the each location and make an informed
decision.
Next frontier cites have limited installed base of talent, it is important to invest in
recruitment function which can help in identifying the best of the talent available in
market
Next frontier locations are extremely suitable for small-medium size operations
Complete report on “Next Frontier Cities is accessible on the Talent Neuron Platform.
To request for a trial account, click here http://zinnov.com/US/demo_signup.php
Talent Neuron Platform
Data and analysis presented in this report is based on Zinnov Talent Neuron platform
Talent Neuron
Talent Analysis
Peer Trends
Cost Analysis
University Analysis
Location Analysis
Latest Trends & Related News
Employee Profile
Analysis
Zinnov LLC
Thank You
4701 Patrick Henry Dr. Building 7 Santa Clara CA – 95054 Phone: +1-408-716-8432 21, Waterway Ave, Suite 300 The Woodlands TX – 77380 Phone: +1-281-362-2773 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore – 560095 Phone: +91-80-41127925/6 11, First Floor, Paras Downtown Center, Golf Course Road, Sector 53, Gurgaon – 122002 Phone: +91-124- 4378211/13
www.zinnov.com
@zinnov
8 Zinnov LLC ( Confidential)