India Tops 2016 Outsourcing Index

"Even though the top six or seven countries are landing in the same order this year as 2014, looking forward, this could all change radically because the very nature of whats being outsourced is changing," said Arjun Sethi, global leader of A T Kearneys strategic IT practice.

"For the first time, we have a trend ? automation - that could displace the leadership of the likes of India and China in outsourcing. Technologys relentless progress continues to transform in unanticipated and fundamentally different ways not only where work is moving to, but how and by whom - or by what - it is being done," Sethi said.

He said the new business model associated with this automation threatens established concepts of offshoring, while expanding the market.

Indias undisputed industry leadership is facing a challenge from China which has become attractive with its recent devaluation of Renminbi and gains in educational skills and cultural adaptability.

"The implications on accessibility of services and employment in these countries are massive. On the client or receiver end, Business Process as a Service (BPaaS) dramatically lowers the entry barriers to business data management, opening the floodgates to smaller and newer companies," said Sethi, principal author of the study.

The GSLI, launched in 2004, helps companies make key location decisions for offshoring and industry development projects with objective guidance.