There is a lot of talk about Talent shortage and rising wages in the context of India and Offshoring. In the 2006 Global Outsourcing Guide, it was indicated that India currently holds 80% to 90% of the offshoring market, but faces a threats to this domination because other low-cost areas are growing in Maturity and the raising wages issue. Infact it goes on to indicate that it expects India's market share to shrink 20% by 2010.

So which countries are getting in the race, China is expected to make a serious dent in the offshoring space over the next 3-5yrs, Poland, Hungary and the Czech Republic which were attractive outsourcing options but their cost structure are getting to be almost at par with their customers, so the customers are beginning to look further in land, deep into the former Soviet bloc, to countries like Romania, Bulgaria and the Ukraine.

Also in the race are some Latin American (TCS's recent acquisition) destinations such as Costa Rica, Mexico and Brazil are beginning to attract U.S. back-office and call center work as the need to service Spanish-speaking markets grows. And A.T. Kearney suggests that the Middle East and Africa may be the next frontier for offshore operations notwithstanding the political situation there.

To get access to the guide click here

Source: 1

Prashanth Rai