BANGALORE: India has emerged as the most matured location for offshored IT and BPO services, though this dominance might be chipping away given the rising costs. Everest Research Institute in its report “Global Sourcing--Market Vista Q1 2008” said that the cost inflation in Indian cities is exceeding the 2007 levels and this has increased the risk of labour arbitrage closing very rapidly.
There has been a constant threat of newer locations such as China, Philippines and Eastern Europe, which are challenging the dominance of India. Everest said that players are continuing to expand and the competitive intensity for talent remains unabated. Further the consumer price at an alltime high since 2004 is potentially creating inflationary pressure on wages.
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