India still top IT offshore destination

Bangalore, December 26: India’s position as the global hub for IT off shoring and outsourcing remains undisputed. Despite the emergence of other locations across the world, newer delivery centers are expected to come up in the near future within the country for IT services. For starters, it has been BPO services that are moving into tier 2 and 3 cities and it is now expected that IT services will follow suit, though at a slower pace. According to Partha Iyengar, head of research-India, Gartner,. “There will be a bigger hub and spoke model within India than outside,” he added.Many companies are looking at starting new IT services centres in locations like Kochi, Bhubaneswar, Mangalore and Coimbatore. The reasonable spread of engineering colleges across the country is also helping the IT services companies to tap into these tier 2 locations. The primary reason for these companies to move into locations is the lower attrition rate and costs. Typically, IT professionals in these locations remain within a particular company for a longer period of time. Gartner has analyzed that India remains the undisputed leader in offshore services, but increasingly countries such as China, Russia and Brazil are providing credible alternatives.