India challenge to China

While China is currently the preferred offshoring destination for manufacturing activities, India is the destination of choice for IT, finance and customer service activities. However, according to the responses of more than 340 of the world’s largest international manufacturing companies – from Europe, Americas and Asia Pacific —India will become a substantial manufacturing destination over the next three to five years.

However, this varies widely depending on the activity. For example, in India 67% of companies have outperformed their expected benefit for IT offshoring, while less than half have not achieved their benefit for manufacturing offshoring. In contrast, about 90% of executives indicated that they have achieved the expected or better-than-expected benefits in China for the manufacturing offshoring activities.

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