Off-shoring moves beyond India

India’s status as the leading location for off-shoring is being challenged by
China, Morocco and Hungary, according to research by Pierre Audoin Consultants.

The research found that the 20 largest IT services suppliers operating in the
UK have opened a total of 21 new global delivery centres since the beginning of
January 2007, but only two of these were located in India. In contrast, four
were set up in China, with three apiece in Eastern Europe and Morocco.

China’s emergence as a global sourcing hub has been slow, with most services
vendors initially looking to target business with the country’s fast-growing
corporations, rather than use local resources for off-shore delivery.

But BT Global Services, EDS, IBM and TCS have all opened sourcing facilities
in the country in the last 18 months.

‘India’s position as the premier low-cost IT sourcing centre is not under
serious threat in the near term,’ said PAC senior consultant Nick Mayes.

‘But what we are seeing is vendors looking to reduce their reliability on
India’s heated labour market, while adding non-English language skills to
support clients in regions such as Central Europe.’

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