European offshore IT spending is to grow 60 per cent in 2008, compared with a rise of 40 per cent in the US, according to analyst Gartner.

But companies moving technology services abroad are often challenged by the task of determining which country would best host their operations, says the study.

India remains the undisputed leader in offshore services, closely followed by China, Russia and Mexico. But the top 30 also includes Argentina, China, Singapore, Israel, Slovakia and Czech Republic.

The criteria used by to determine potential locations include language, government support, infrastructure, cost, as well as data and intellectual property security and privacy.