The world's leading global business intelligence and consultancy firms such as Giga, Forrester Research and McKinsey & Co. have cited various reasons for the increase of offshore outsourcing by multinational corporations to India. India's quality and cost benefit edge is one of the major draws for these organizations, analysts say. Giga predicts that, compared to other competing countries such as China, Ireland, Israel, and the Philippines, India will continue to dominate as the preferred off shore country.

Forrester Research indicates that by 2003, a larger number of companies will engage offshore providers and their budgets too will grow rapidly. There will be an increase from 12 percent of technology budgets today to 28 percent in 2003. According to a study conducted by Forrester in November, 2001, India's edge over other competing nations in the IT outsourcing business is based on the country's decade old experience in this area, fluency in English language, supportive Government policy infrastructure, and high quality offerings.

India can be an ideal offshore destination due to a variety of advantages it has over other countries.

"India offers a workforce of highly-dedicated, well-educated, English-speaking professionals, and the infrastructure needed to deliver world-class customer care," says Ron Schultz, President of Convergys Customer Management Group, a Cincinnati based outsourcing group.

"You save considerably setting up an operation in India," says Keith Fiveson, managing director of IT Enabled Services Alliance, a New York-based consulting firm that helps foreign investors set up sites in India. "Generally, you can save anywhere from 30 to 50 percent on administrative costs setting up an operation in India."