A recent research by Gartner Inc. indicates that eastern European countries along with China, Brazil, and Russia are giving stiff competition to India in matters of providing offshore services to western European and American countries. However, India still reigns supreme in the business owing to strong government support, lower costs of doing business and efficient English language capabilities.

India has topped the list of 30 countries and accounts for 65-70% of global offshored business. The criterion on which India tops are government support, political and economic environment, labor pool, educational system, language, cost, global and legal maturity, cultural compatibility, privacy and security of data and intellectual property.

Eastern European countries are trying to gain an upper hand over India due to their cultural and geographical proximity to western European countries that are more averse to risks associated to outsourcing. China also continues to be a threat to India due to their immense manpower. However, poor English language skills and reduced availability of skilled middle management, helps India retain its supremacy.

Gartner Inc. has predicted that in 2008, offshore spending will grow by 60 percent in Europe and 40 percent in Unites States. Based on seven categories in which India fared the best worldwide, while Canada from the Americas topped the list but fared the worst for cost of labor.

The economic and political environment of countries like Philippines, Pakistan, Vietnam and Sri Lanka remain a concern for many companies who move their work to locations offshore.

India has become a prime destination for overseas companies that are looking at outsourcing business processes especially in areas such as payroll management, insurance, legal and design services, and technical help desks.

Cities like Bangalore, Hyderabad, and even Pune, are riding high on the BPO wave. Emerging trends indicate a new era in outsourcing, which includes gaming and healthcare services, where Indian companies will be at the head.

There has been a 33 percent rise in software exports according to Nasscom. A record $31.4 billion for the year to March 2007 is further expected to rise 24-27 percent to $49-$50 billion by March 2008. Even foreign firms in India such as IBM and Accenture are also in expansion mode. This has led to an increase in employment of around 1.6 million, up from 1.3 million the previous year. Approximately 50 percent of revenue comes from the United States. Two thirds of the outsourcing market is accounted for by the United States, followed by Europe with a 25 percent share. The average Indian graduate has also been able to take home a salary of Rs. 15,000 ($380 approx.), which is further expected to rise around 12-20% per year.