Friday, September 16, 2005

India Emerging as First Choice for Offshoring Financial Services – PwC

According to a recent survey by PricewaterhouseCoopers (PwC), India has emerged as the best choice for offshoring financial services globally.
However, PwC warned that China could overtake India in about three years’ time.
India took the first spot among 156 companies surveyed worldwide as the top destination for off-shoring.

Dominic Nixon, Asia Head for AML, PwC, said, "It is inevitable the position that India has in the area is gradually going to be eroded over time as Philippines and other countries outside Asia begin to become more attractive''.

He added that cost plays an important role, but is not the overriding factor.

He went on to explain that the quality and the education of the workforce and the stability of the country were also taken into account. He, however, cautioned that rising wages are threatening to erode India's advantage as a low-cost base.

The survey pointed out that keeping cost aside, companies which participated in the survey cited other factors when choosing their location. These include improved quality of service and strategic flexibility.

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