India losing status as offshore king?
China and Morocco starting to ****ne…
By Nick Heath
Published: Monday 03 March 2008
India is losing its stranglehold as the offshoring destination of choice
as
China, Morocco and Hungary gain ground.
Special Re****t: Inside India
In February 2007 silicon.com's Steve Ranger visited the Indian tech
hotspots
of Bangalore, Hyderabad, Mumbai and Pune. Click on the links below to see
photo galleries of the cities and companies visited.
♦ Satyam's IT campus
♦ Hyderabad's tech parks
♦ Bringing tech to rural India
♦ High-tech on the streets of Pune
♦ Pune - the new Bangalore?
♦ Boom town Bangalore
♦ Bangalore's Electronics City
♦ SAP and Wipro in Bangalore
Fewer global delivery centres were opened in India by the UK's 20 largest
IT
services suppliers than in each of the three countries over the last year.
The competitive Indian labour market is driving companies to alternative
destinations, say Pierre Audoin Consultants (PAC) in its re****t.
The 20 largest UK companies analysed in the re****t included Accenture, BT
Global Services, Capgemini, Capita, CSC, EDS, Fujitsu, HP, IBM and Logica.
Of the 21 centres opened since January 2007 by the big 20, only two were
in
India, while four were in China, with three were Eastern Europe and
Morocco
respectively.
Nick Mayes, senior consultant at PAC, said there is no "serious threat" to
India's outsourcing dominance in the short term but companies are looking
to
reduce their reliance on "India's heated labour market".
China's emergence as a global sourcing hub has traditionally been slow but
the re****t found that BT Global Services, EDS, IBM and Tata Consultancy
Services (TCS) have all opened sourcing facilities in the country in the
last 18 months.
The two facilities launched in India were both outside the traditional
hotspots of Bangalore and Mumbai - IBM's new centre in Noida and TCS's
expansion site in Hyderabad.
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