India will continue to be dominant IT offshore destination

Mumbai, Apr 24 (UNI) India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers as lead buyers of IT services with US economic slowdown pushing buyers of IT services look to low cost destinations.

In a report, released here today, Gartner stated with concerns that the US economic slowdown could extend to other geographies, organisations were refocusing on IT cost reduction and taking steps to accelerate the use of offshore labour. Buyers of IT services would shift from cost containment goals to a greater focus on cost reduction and productivity increases in their sourcing decisions. This would lead to a steady increase in the adoption and expansion of offshore services - primarily from India, but increasingly from other countries as well.

''Factors that will give India the edge over other offshore locations are scale and quality of labour. North American and European buyers of IT services have been the force behind a growing offshore services market and India is central to almost any discussion of offshore services delivery for these buyers,'' Gartner Research Director T J Singh said.

Whether it is the indigenous India-centric service providers that have a wide-reaching impact on the IT services sector, or a vast and growing IT labour pool being trained to support a global client base, India would continue to be the most-sophisticated country option to source offshore IT services in the near term.

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