India is the world's leading offshore services location according to the Global Services Location Index, the latest annual survey by global management consulting firm A.T. Kearney.
India, closely followed by China, continues to lead the Index by a wide margin, with declines in cost advantage offset by further improvements in talent supply and business environment.
The survey also indicates that globally the wage cost advantage of offshore locations for office services is set to last for another 20 years.
Even though wages in offshore locations for services, such as IT, business processes and call centres, have started to rise, they will remain cheaper for the foreseeable future under the most aggressive projections of wage inflation and currency appreciation in developing countries.
The labour cost changes are partly the result of accelerating wages and currency appreciation in offshore hotspots, as well as downward pressure on wages in impacted sectors in developed countries.
India
2
China
3
Malaysia
4
Thailand
5
Brazil
6
Indonesia
7
Chile
8
The Philippines
9
Bulgaria
10
Mexico
11
Singapore
12
Slovakia
13
Egypt
14
Jordan
15
Estonia
16
Czech Republic
17
Latvia
18
Poland
19
Vietnam
20
United Arab Emirates
21
United States (Tier II)*
22
Uruguay
23
Argentina
24
Hungary
25
Mauritius
26
Tunisia
27
Ghana
28
Lithuania
29
Sri Lanka
30
Pakistan
31
South Africa
32
Jamaica
33
Romania
34
Costa Rica
35
Canada
36
Morocco
37
Russia
38
Israel
39
Senegal
40
Germany (Tier II)*
41
Panama)*
42
United Kingdom (Tier II)*
43
Spain
44
New Zealand
45
Australia
46
Portugal
47
Ukraine
48
France (Tier II)*
49
Turkey
50
Ireland
* Based on lower-cost locations in each country: San Antonio (US), Belfast (UK), Leipzig (Germany) and Marseilles (France).
At the same time, key emerging markets have continued to improve their attractiveness in terms of access to talent, industry experience, quality certifications and their regulatory environment.
"What is most striking about the results of this year's Global Services Location Index is how the relative cost advantage of the leading offshore destinations declined almost universally, while their scores for people skills and business environment rose significantly," said Paul Laudicina, managing officer and chairman of A.T. Kearney.
source : Rediff
India, closely followed by China, continues to lead the Index by a wide margin, with declines in cost advantage offset by further improvements in talent supply and business environment.
The survey also indicates that globally the wage cost advantage of offshore locations for office services is set to last for another 20 years.
Even though wages in offshore locations for services, such as IT, business processes and call centres, have started to rise, they will remain cheaper for the foreseeable future under the most aggressive projections of wage inflation and currency appreciation in developing countries.
The labour cost changes are partly the result of accelerating wages and currency appreciation in offshore hotspots, as well as downward pressure on wages in impacted sectors in developed countries.
The Top 50
1India
2
China
3
Malaysia
4
Thailand
5
Brazil
6
Indonesia
7
Chile
8
The Philippines
9
Bulgaria
10
Mexico
11
Singapore
12
Slovakia
13
Egypt
14
Jordan
15
Estonia
16
Czech Republic
17
Latvia
18
Poland
19
Vietnam
20
United Arab Emirates
21
United States (Tier II)*
22
Uruguay
23
Argentina
24
Hungary
25
Mauritius
26
Tunisia
27
Ghana
28
Lithuania
29
Sri Lanka
30
Pakistan
31
South Africa
32
Jamaica
33
Romania
34
Costa Rica
35
Canada
36
Morocco
37
Russia
38
Israel
39
Senegal
40
Germany (Tier II)*
41
Panama)*
42
United Kingdom (Tier II)*
43
Spain
44
New Zealand
45
Australia
46
Portugal
47
Ukraine
48
France (Tier II)*
49
Turkey
50
Ireland
* Based on lower-cost locations in each country: San Antonio (US), Belfast (UK), Leipzig (Germany) and Marseilles (France).
At the same time, key emerging markets have continued to improve their attractiveness in terms of access to talent, industry experience, quality certifications and their regulatory environment.
"What is most striking about the results of this year's Global Services Location Index is how the relative cost advantage of the leading offshore destinations declined almost universally, while their scores for people skills and business environment rose significantly," said Paul Laudicina, managing officer and chairman of A.T. Kearney.
source : Rediff