India first choice for offshoring financial services: Survey

By agencies   |   Thursday, 15 September 2005, 19:30 IST
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NEW DELHI: A recent PwC survey has put India as the top choice for offshoring financial services globally but has warned that China could overtake India in just three years. India took the first spot among 156 companies surveyed worldwide as the top destination for off-shoring, the survey by Pricewaterhouse Coopers and Economist Intelligence Unit said but warned India might lose that spot in three years to China. PwC's Dominic Nixon said: "The countries that were ranked top were the usual-India, China, Ireland followed by Philippines and Singapore. "Cost plays a big factor, but it's not the overriding factor. Also, they look at the quality and the education of the workforce and the stability of the country. Those are the factors that were put into account." “But rising wages are threatening to erode India's advantage as a low-cost base.” Dominic said: "It is inevitable the position that India enjoys as the No.1 in the area is gradually going to be eroded over time as Philippines and other countries outside Asia begin to become more attractive.'' Costs aside, companies who took part in the survey cited other factors when choosing their location. These include improved quality of service and strategic flexibility.

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