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June 13, 2006

India is Leading Outsourcing Business

According to a recent report, more than three-fourth of the top providers of offshore services to US companies have their operations in India. The report was released by the International Association of Outsourcing Professionals (IAOP). Although China, Philippines and Russia have made steady progress over the years, they are still lagging behind India in outsourcing operations. Most of the top-ranked offshore providers are located in India, thus making it the number one destination for outsourcing.

In the recent years, some regions in Africa and the Philippines have shown growth as outsource destinations. Few companies operating there are ready to step up their operations and expanding their networks worldwide. However, most American companies are still opting for India. Among the leading functions moving from the US to offshore locations are technical support in IT, toll-free call, e-mail responses, transaction processing and financial management. Most tasks are labor intensive and require significant attention. The availability of low-cost labor and efficiency and dedication displayed by the workers play an important role in attracting outsourcing business to India.

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