India continues to be the centre of offshoring activity

10 June 2011

10 June 2011 | Lindsay Clark

Nearly three quarters of offshore outsourcing market participants believe the trend for globalised service provision will expand.

A survey of buyers and providers of offshore outsourcing by the Everest ResearchInstitute found that 72 per cent had plans to grow the scale of their offshore activity.

India continues to be the main focus with buyers increasing activity there as well as in the Philippines and China. Meanwhile there was growing interest in Brazil, Poland and Mexico, the study found.

Despite some wage inflation, India remained the cheapest destination for offshore outsourcing. The location also had the advantage of being in the market longest, enabling providers to improve the quality and scope of their services, said Amneet Singh, vice president global sourcing with Everest. “They are looking to do more complex services like data analytics and financial research and trying to drive more improvement from infrastructure, [such as databases],” he said.

Having demonstrated ability in areas such as software application development, suppliers were trusted with higher value work, Singh added. “Because of their experience working with clients, they have enough confidence to look at some of this more complex work, and from a buyer perspective they were more confident in these service providers because they had demonstrated success,” he said.  

The study was based on 340 respondents, of whom 35 per cent were buyers and 56 per cent providers, among others.

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