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Gartner says India still top offshore haven

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India is already the most successful country among the offshore locations. It continues to score very well across all the 10 criterion," Gartner said in its latest report on offshore services. India is the offshore hotspot of the world for now but its service competitiveness and cost efficiency is being challenged by Phillipines, Vietnam and Indonesia. Moreover its neighbour country China is fast closing in on its heels, according to IT consultancy firm Gartner. According to Gartner, even though India's cost competitiveness is being challenged by the appreciation of its currency, it manages to compensate on the other nine criterion. The 10 criterion used to judge the attractiveness for offshore locations were language, government support, labour, infrastructure, education, cost, political and economic environment, cultural compatibility, global and legal maturity and data security and privacy. According to the survay an attractive cost structures in the Philippines, Vietnam a...

MNCs use India units to broker outsourcing deals...

As many multinational companies with captives in India are realising the benefit of outsourcing to third party IT and BPO vendors. The companies are being called on to play a new role by their overseas parents, they are using the management expertise in their captive units to broker these deals. In many cases, the final contract is between the third party vendor and the Indian captive, rather than with the multinational parent and the third party vendor. This also gives them a price advantage since it is a domestic contract. “There is an increasing understanding that it is better to outsource some tasks to a third-party vendor rather than do it at their own captives because it results in higher levels of efficiency. At the same time, firms want to keep their captives for high-end tasks that are sensitive and typically cannot be outsourced. These firms are also tapping the talent at their captives to ink deals with third party vendors because they have a better understanding of the loca...