India through a series of reforms has thrown the door wide open to globalization and investment. This has led to greater levels of opportunities, and jobs for its indigenous population that heretofore never existed. Prior to these reforms, India was less welcoming of foreign investment and protective trade policies.

Currently close to eighty percent of offshoring work is done in Indian shores and offshore outsourcing to India is big time venture. Why do organizations in the U.S and Europe choose one destination over the other? Is low operational cost alone the factor? Alternatively, are there other reasons?

These are some questions worth considering in the current context of rising cost of living and lowered price advantage of offshoring. Offshore industries outsource to India primarily because India delivers a wide range of outsourcing services not available in any other outsource location in the world. Varying factors like government policies, mindset of people etc., make it increasingly difficult to do business in many parts of the world.

It would be a long time if ever, before India out prices itself from the offshore industry. Indian talent alone is of world standard and would continue to be relied upon to deliver the commodities. However, that is not to say it is okay to rest on ones laurels. India has to continue to strive to maintain its position as the ‘king of outsource’ by continuous evolving to meet market needs. India has learned the lesson that the means to beat competition is not by decreasing bottom lines, but by enhancing quality and increasing providing value based services.