India still a hot spot for outsourcing: report

NEW DELHI: India continues to rein as the favourite off-shoring destination of the world and is most likely to keep the companies interested with its large talent pool for the next decade, according to a report.

Cities like Delhi, Hyderabad and Mumbai topped the list of favoured outsourcing destinations and did much better than their global counterparts Manila, Shanghai and Moscow, the report by management consulting firm, neoIT said.

The company analysed 24 cities across the world in terms of their current and future attractiveness for service globalisation and ranked the cities according to generic factors such as human capital, costs, infrastructure, environment and risks involved.

"The global offshoring business is over 250 billion dollars and a chunk of it can be earned by India, if the country improves its infrastructure and business environment, besides setting up a single window clearance for all the sector," neoIT Senior Director S Sabyasachi said.

Though, Delhi scored lower than Mumbai, Bangalore and Pune, because of its perceived lack of infrastructure, geo-political risk and expectation of it becoming expensive, there is a likelihood of it catching up and surpassing these destinations in the next five years, Sabyasachi said.

India is expected to out shine other offshoring destinations in areas of application development management, lifesciences, knowledge-based outsourcing, provided it maintains its low costs, labour pool and service maturity, he said.