Softtek, a Monterrey (Mexico) provider of IT services, added 30 new clients last year. Most of them had been using Indian firms for at least part of their outsourced IT.
But they came to Softtek because they "were looking for something else," says Beni Lopez, CEO of nearshore services for the company, which has operations around the world.
Companies that traditionally rely on India for offshore IT services have been looking for that something beyond India for years, citing such reasons as high employee turnover and unreliable communications.
But the search has taken on added urgency recently, especially for US companies, as a weakening dollar has boosted the cost of IT services priced in India's rupee.
Over the past five years the dollar has declined about 16 per cent against the rupee. High real estate costs and expectations for tax increases also have diminished India's allure.
Text : Rachael King
Image: Indian employees of the Quark call center in Mohali, Punjab, work during their night shift | Photograph: STR/AFP/Getty Images
Also read: Outsourcing at home
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