Even as talks of Outsourcing centered around recent ban by Ohio state – India remains at the top and most preferred Outsourcing Destination by large private U.S Corporations.
According to recent survey released by Cap Gemini in partnership with Harris International, India has over 60 percent of the Outsourcing Market share in U.S. China comes in 2nd with overall market share of 27 percent, while Latin America close to its heels at 25 percent. The survey interviewed 300 senior executives from Fortune 1000 companies to come up with following results.
Top Outsourcing Countries for U.S Companies
Even today, the biggest reason for outsourcing is labour cost saving, with 69 percent executives citing that reason. Technology and Infrastructure capabilities (49%) along with skilled labour (48%) were also important considerations while deciding the country for outsourcing.
Some Other highlights of the survey
- The top five factors listed by executives in choosing an outsourcing destination are
- labor costs (79 percent),
- Technology & infrastructure capabilities (62 percent),
- Skilled labor (61 percent),
- Language proficiency (49 percent) and
- Economic stability (44 percent)
- Less important factors listed by executives in choosing an outsourcing location are tax benefits (26 percent) and proximity to the U.S. (3 percent)
It is interesting that only 3 percent cited that proximity to U.S was important – So hype about near-shoring is actually quite misplaced, or atleast that’s what appears from survey results.
The important thing is that China is far behind India when it comes to outsourcing market share in the biggest Market. Although, in Asia Pacific, India seems to have lost the edge, Western countries still prefer India as their outsourcing destination!