Offshoring: India continues to be most attractive

By agencies   |   Sunday, 27 November 2005, 08:00 Hrs
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WASHINGTON: Global management consultancy firm A.T. Kearney says India continues to hold on to the top spot in being the most attractive location for offshoring of such services as information technology, business processes and call centers.

India remains the best offshore location by a wide margin, even if wage inflation and the emergence of lower-cost countries decreased its overall lead, A.T. Kearney said in its annual rankings.

It has also warned that China’s improving infrastructure and relevant people skills have increased its attractiveness as a low-cost option for servicing Asian markets.

The gap between India and the second-ranked country, China, is larger than the gap between the next nine countries combined.

However, it said, India's lead has shrunk slightly compared to 2004 mainly due to a slight reduction in India's financial attractiveness, the result of wage inflation in India and the emergence of new even lower-cost contenders-in Africa and South East Asia like Ghana and Vietnam.

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