India Remains Undisputed Global Leader In Offshoring Services. Even Increasing The Lead Further!


While India still struggles with her own basic IT infrastructure including (but not limited to) lackluster internet connectivity or power issues, in one area Indians have consistently beaten the world every way possible – Offshoring services.

India’s superior IT offshoring services prowess is unmatched and has played a dominant role in putting India on the global map.

India offshoring report

A.T.Kearney, a leading global management consulting firm with offices in more than 40 countries recently came out with their Global Services Location Index (GSLI) that brings forth most popular offshore locations preferred by world business leaders. Every year, the GSLI analyzes and ranks the top 50 countries worldwide as the best destinations for providing outsourcing activities, including IT services and support, contact centers and back-office support.

The GSLI for 2014 is out and according to it, India has remained the most popular offshoring destination by a a fair margin. According to the index, India has actually increased it lead over others compared to previous years. The report states,

The undisputed leader in the field for the past decade, India is still unrivaled in both scale and skills, and it is increasing its advantage over second-place China.

According to NASSCOM, the IT services, BPO and voice services sector today employs over 10 lakh people. In 2014, the Indian IT & BPO industry is expected to grow by close to 15% to nearly USD 120 billion— out of which more than 80% will come from offshoring.

Offshoring Services Country Rankings

Offshoring Country Rankings

What is notable is even after a decade being on the top, India is still growing and while other countries are trying to catch, India is increasing it’s lead further.

In last few years, many experts and analysts have been talking about India losing it’s sheen in offshoring business, but AT Kearney’s report is a clear proof that these thoughts are unsubstantiated.

While wages in India are increasing reducing it’s financial attractiveness, other countries are sailing in the same boat. Infact, one of the main reasons why China has not been able to come close to India is because their wages are rising more rapidly compared to India.

Among the 3 main factors – Financial attractiveness, People skills and availability and business environment – the in case of first and second India leads the world by large margin. India is probably the only country that has such huge pool of people resources, a factor that most other countries (except China) lack. While India may not have a fantastic environment, the two strong factors are enough to keep India on Top.

The report also states that India will sustain it’s lead in offshoring services business in near future and the reason is – Indian IT players are evolving much faster than their peers. They are expanding their traditional offerings to include R&D, engineering & product development, analytics, and other specialized services, leveraging their extensive experience and highly skilled workforces.

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