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The global offshoring market continues to grow rapidly, as the proven benefits of offshoring (also termed global sourcing or global delivery) induce more and more companies to adopt these practices and providers develop the capabilities to serve even more sophisticated customers.
The year 2005 also witnessed the coming of age of the Indian IT multinationals, with the traditionally India-centric, indigenous players beginning to build noticeable presence in other locations - through cross-border acquisitions, onshore contract wins and organic growth in other low-cost locations.

In addition to the growth in scale, the portfolio of services sourced globally continued to expand into higher-value, more complex activities- further reinforcing the growing maturity of the global delivery model.

An analysis of some of the major alternate outsourcing destinations was done and the results of the same are shown in the graphs on the next page. The first graph measures the percentage of firms having business in another country as the findings indicate currently India is having maximum firms having business in some other country. The second graph represents the offshore attractive index from the client's perspective. In this index each country is rated on the people, business and financial parameters and their overall score is calculated in this index also India is rated as the most preferred outsourcing destination by the clients amongst all the countries.

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* Contributed by: -
Shallabh Batra and Yogesh Potnis,
National Institute of Industrial Engineering, Mumbai.