India Losing Its Offshoring Advantage

China’s emergence as a global sourcing hub has traditionally been slow but the report found that BT Global Services, EDS, IBM and Tata Consultancy Services (TCS) have all started sourcing facilities in the country over the past 18 months.
The two facilities launched in India were both outside the traditional hotspots of Bangalore and Mumbai-IBM’s new centre is in Noida and TCS’ expansion site in Hyderabad. Among the companies that were analysed were Accenture, BT Global Services, Capgemini, Capita CSC, EDS, Fujitsu, HP, IBM and Logica.
As salaries of the Indian workforce increase, it seems obvious for the western companies to look for options that provide reduced costs. With an efficient English speaking workforce, Europe seems to be a hot destination. Similarly, close proximity also enhances their say in the outsourcing industry. In fact, the emergence of increased outsourcing to China will be closely watched by the Indian industry for sure.