India tops destination list

India is still the best location for offshoring services, according to a new report.

But the 2007 Global Services Location Index, published last month by consultancy AT Kearney, revealed that India faced increasing pressure from China for the number one spot.

Both countries were ranked equally on people and environmental factors, but India edged ahead thanks to a more attractive financial environment.

"India still offers an unbeatable mix of low costs, deep technical and language skills, mature vendors and supportive government policies," the report said.

But it also mentioned that both countries had experienced rising wage costs, up by around 30 per cent in China, and by 20 per cent in India. This was matched, however, by increases in the quality and skills of workers.

Other Asian nations in the top six were Malaysia, Thailand and Indonesia, ranking third, fourth and sixth respectively. Brazil rose five places to fifth.

But Russia, once seen as one of the top four emerging world economies, continued to fall down the rankings to 37th place, because of its weak business environment.