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Despite the growing competitiveness of several countries in the IT outsourcing market, India remains the number one destination.This is the conclusion of a new report by analyst firm Gartner, which found that eight new countries have made it into the top 30 this year.The company said attractive cost structures in nations such as Vietnam, Indonesia and the Philippines were boosting their popularity.
While labour costs and attrition continue to increase in the Indian market, these countries are becoming more competitive.
China is also now rivalling India in terms of scale, the report stated.
However, India has continued to score well across all ten of Gartners outsourcing criteria, which include government support, infrastructure and the political and economic environment.
With the rising rupee, its cost competitiveness is being challenged, but this is compensated by its strength in other areas, Gartner pointed out.
The publication of the report comes after oil giant BP signed a five-year outsourcing deal with HP Enterprise Services, which will see its data centre services in Europe and America managed b the IT firm.
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