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Survey: India is top destination for job offshoring

Posted: 13 Dec 2007 ?? ?Print Version ?Bookmark and Share

Keywords:job offshoring? Gartner survey? India offshore services?

India remains the top destination for offshore services, though China, Russia and Brazil are emerging as credible alternatives, a survey found.

According to Gartner Inc., spending to offshore jobs is expected to grow by 40 percent in the United States and by 60 percent in Europe during 2008.

Ian Marriott, Gartner's VP of research, said its offshoring study measured 10 criteria, including language, government support, infrastructure, education, political and economic environment, cultural compatibility as well as intellectual property protection.

Gartner found that the top locations in the Americas were Argentina, Brazil, Canada and Chile. Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka and Vietnam topped the Asia Pacific.

In Europe, the top locations were the Czech Republic, Hungary, Ireland and Israel.

Though China is India's biggest challenger in terms of its ability to scale, China fell short in the survey due to language skills. Still, China, India and Singapore showed strong government support for promoting offshoring services. Political and economic concerns were greatest for companies seeking to ship jobs to Pakistan, the Philippines, Sri Lanka and Vietnam. Australia, New Zealand and Singapore led the way for political and economic stability along with cultural compatibility, legal maturity and IP rights.

"The aim of the study was not to rank each country, as every organization will have a different view of which factors are the most important for their needs, but rather help sourcing managers determine which locations are right for their organizations," Marriott said.

- K.C. Krishnadas
EE Times




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