India will struggle to maintain its dominance as an outsourcing centre, says a new report from the National Outsourcing Centre.
The NOA survey highlighted two major developments that could affect companies' decisions about where to locate their operations:
• Alleged lapses in data security
• The Indian brain drain which has seen quality graduates leave the country.
More than three-quarters of respondents said China was most likely to rival India over the next five years.
Martyn Hart, chairman of the NOA Summit, commented: “This research reflects the fact that there is a whole host of new supplier locations that many end users are starting to consider. Outsourcing has become a truly global market, and this can only be a good thing for end users trying to find the best service in terms of both cost and service levels.
“Cost-cutting remains a driving factor behind many outsourcing deals, but it is significant to note that whilst at one point in time it may have been the only reason to outsource, the knowledge that surrounds the outsourcing industry is far greater now, and people understand that they need to look further than just cost. Previous surveys have shown 80% of end users decide on cost, it is noticeable that this figure is slowly declining as both service recipients and services providers understand that outsourcing is more than just about cost saving.”
