India remains world’s favourite outsourcing destination

India remains world’s favourite outsourcing destination

New Delhi: When it comes to outsourcing, India is still the favourite global destination, even though factors like emergence of cheaper destinations, employee and salary crunch are adversely affecting the sector, a recent study shows.

India holds an edge as it commands global confidence to produce perfect Turn Around Time (TAT), a recent study by recruitment solutions provider Elixier Solutions shows.

TAT is the time needed for performing a task, especially receiving, completing, and returning an assignment.

“At present outsourcing business in India is increasing at a rate four times more than any other country and the county has the resource and margin to meet the competition," a partner in Elixier Solutions Vipul Prakash said.

According to the study, growing at a rate of 40% annually, India is the lead player in this sector followed by China at the second spot with a growth rate of 25%.

“Certain companies restrain from outsourcing their practices thinking it to be a luxury practice which only organisations having deep pockets can afford," Elixir Web Solutions Associate Partner Jacob Samuel said.

The overall outlook of this industry seems positive with experts predicting that the global market for shared services would grow to $1.43 trillion by the end of 2009 from $1,000 billion at present.

Although India and China are the market leaders in this sector, there are huge opportunities present in the market to give ample space to other countries like Philippines, Vietnam, Romania, Kenya, Sri Lanka and North America market to grow, the report said.