India continues to be the most attractive destination for offshoring of services such as information technology, business processes and call centres, a global management-consulting firm has said. It remains the best offshore destination by a wide margin even if wage inflation and the mergence of lower-cost countries decreased its overall lead, the annual ranking by consulting firm A T Kearney has said. The main Offshoring Destinations in India are:

Ahmedabad

According to the profile of the ITES companies operating in the city, Ahmedabad is strong in Web site services and Web applications, call / contact centers and back-office operations. In other services, such as database management /development, data processing / management and network management/remote maintenance, the city is relatively weak, though it has the telecom infrastructure to support these services. This shows that the manpower available in the city is best suited for call / contact centers and back-office operations. The public transport and the cost of power which is one of the highest in the country reduces the competitiveness of products and services coming out of the city Another problem is that despite good educational infrastructure, many students migrate to Mumbai each year in search of better prospects. This drain needs to be stanched to retain local talent

Bangalore

Though Bangalore has many ITES companies, it seems to be stronger in the call / contact center, transcription, and back-office operations services. But, perhaps because of its IT-orientation, the city has also been able to attract a reasonable number of companies into database management / development, data processing / management and engineering, design, and GIS services. Given this, it should still be able to attract other forms of ITES companies. However some of the issues that need to be looked into are power and telecom infrastructure that are not keeping pace with the IT expansion. While the government promises uninterrupted power supply, these seem hollow claims and many ITES firms have to maintain their own back-up systems, which cranks up costs. The city's public transport infrastructure too is very weak and this has resulted in many people buying their own vehicle. There is a lack of a neutral accent among the local populace which necessitates training for call center services. Though real estate is not a problem, property costs in Bangalore are higher than in Chennai.

Chennai

Chennai, despite a relatively sturdy infrastructure, hasn't been able to attract as many ITES firms as Bangalore. The profile of the companies operating in the city indicates that the city is strong in call / contact center, content management / development & animation, data processing / management / digitisation and Web site services / Web applications. The city loses out to the likes of Delhi and Bangalore in the 'perception game.' It is perceived to be conservative and lacking in infrastructure. Accordingly, the study reveals that it would help if the government found a way to highlight the success stories of companies based in Chennai. .

Hyderabad

Though the city scores high on infrastructure and policy, it has been able to attract only certain kinds of ITES companies. The current ITES population in the city is favourable towards engineering, design, GIS, and data processing / management / digitisation and seems to lag in the contact center and transcription businesses. The Andhra Pradesh government is aggressively marketing Hyderabad as a choice destination for ITES companies. So there needs to be a greater emphasis on the infrastructure. The city's public transport, for one, needs improvement. The state's ITES policy is perhaps one of the best in the country and puts a lot of emphasis on quality manpower. The government must now deliver on those intentions and support institutes that train manpower suitable for ITES. Accent is a major problem that needs to be addressed through training support.

Kochi

Kochi is an upcoming city in Kerala and is aggressively being promoted by the state government as an IT destination. Though it doesn't have any ITES companies of significance yet, it holds a lot of potential to attract many. But the city needs to address the following infrastructure issues: Though it has the lowest power tariff among all the cities surveyed, it still experiences some power cuts. Like most cities in India, Kochi lacks a decent public transport infrastructure Compared to the larger cities, Kochi has only a few colleges. As ITES companies would mainly hire graduates, the state needs to ensure abundant supply of trained manpower. Kochi too loses out in the perception game. The government needs to ensure that the city moves up this scale to start attracting new businesses .

Kolkata

The profile of the ITES companies in Kolkata suggests that it is relatively strong in data processing / management / digitisation and back-office operations. However, in other areas, the city has not been able to attract many companies. The main issue that needs to be tackled to place Kolkata firmly on the ITES map is perception. Although the state government is aggressively promoting Kolkata as a destination for ITES firms, it needs to do more. Offering more incentives - possibly following the Andhra model - and showcasing the success stories coming out of the city could be the first step toward achieving this. The state also needs to increase its tele-density, improve the city's public transport and the quality of the road network. .

Mumbai

Next only to the Delhi-Gurgaon-Noida belt as the preferred choice of destination for ITES firms, Mumbai is strong in call / contact centers, back-office operations, and data processing / management. However, it seems to be quite weak in transcription services and network management / maintenance. Mumbai is plagued by high real estate rates, too. Even a depressed real estate market has failed to bring down the prices on par with the other metros. Though Mumbai has adequate trained manpower, the cost is among the highest in the country. The public transport infrastructure while best in the country is offset by the poor quality of the roads.

Delhi,Noida and Gurgaon (NCR)

By far the leader in ITES in the country, NCR, unlike Bangalore, has not been able to attract every type of ITES company. For instance, from the profile of the companies operating in the region, it seems to be particularly strong in call / contact center, back-office operations, Web site services / Web applications, and data processing / management / digitisation, with call /contact centers leading the way. The physical infrastructure needs to be worked upon immediately. Delhi's intermittent power supply needs to be redressed as it necessitates back-up power systems at companies, thus increasing costs. The inadequate public transport infrastructure also adds to the companies' operational costs and thus renders it as a cost ineffective destination. Like in many other parts of the country, the lack of a neutral accent may be a problem for some ITES firms, especially those in the call center business.

Pune

Though Pune has not managed to attract many ITES companies, those that are there seem to be evenly distributed between the call/contact center, data processing/ management / digitization, and back-office businesses. But the other services are conspicuous by their absence. Infrastructure tops the list of concerns. A reliable and continuous power supply needs to be provided. Currently, ITES companies need to have their own back-up power systems to supplement the utility's supply. A rickety public transport system forces firms to spend on transportation. Despite the government's sops for ITES units on the FSI norms, real estate rates in Pune are not very low.