India ranked first in the list of top 10 locations for outsourcing business operations in 2011 but it has started facing competition from countries like Phillipines and Indonesia, global property consultant Jones Lang LaSalle (JLL) said in a report.
"India, while still hitting the high notes on the offshoring market, will need to work hard to maintain its edge," JLL India Chairman and Country Head Anuj Puri said in a statement. Puri said when it comes to offshoring business operations to India, the traditional benefit of availability of a large talent pool, lower costs and quick turnaround time still apply.
Outsourcing to India enables foreign companies to overcome office space costs in their own countries, he added. "India has the largest english speaking population in the world, ensuring optimal communication customer-vendor communications.
However, India is beginning to face stiff competition on the outsourcing front from other markets like Phillipines and Indonesia," Puri said. The report said that the options for global location decision makers are extending.
"Optimal decisions require a broader and more considered evaluation reflective of changing times. India continues to be a leading player in this environment, supported by its strong fundamentals," JLL Director-Corporate Research Tom Carroll said.
However, he said the global corporations are increasingly focused on productivity, operational efficiency and future scalability, rather than straight cost-saves in the short term and therefore "India will need to ensure it reflects these concerns if it is to retain its leading position".
"India consistently leads top 10 locations for FDI in shared service centres (2003-2011), the statement said. Malaysia and Poland were at the second and third positions, respectively, accoring to the report.
Updated Date: Dec 20, 2014 13:29 PM