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According to Gartner, efficient alternatives to India for IT services are causing its domination to be reduced as an offshore location for big businesses.

There are 30 leading global locations for offshore services and some of the leading ones are Mexico, Brazil and China. India is no longer low cost. Salaries and inflation have been rising significantly in the last decade so alternative locations with more aligned cultures can now be found at similar or lower prices.

According to Gartner, currently 63% of global buyers of IT services use Latin American locations, 63% use locations in Asia/Pacific and 55% use locations in EMEA.

Western European buyers predominantly use India (35%), Poland (21%), Brazil (18%) and China (16%). The UK is probably even more dominated by India because of the language advantage. These figures were shown on computerweekly.com.

Ian Marriott, research vice president at Gartner says IT suppliers are spreading their resources to meet customer desires to have a global delivery model. "Providers are beginning to de-focus further investments in India and will aim to create critical mass across a number of these centers. This will allow them to establish a global delivery network through a combination of common methodologies, tools, processes and procedures, to provide seamless and consistent delivery capabilities to their customers, wherever they are located."

In our experiences there has been a big shift towards Eastern Europe for software development in the past 5 years, they produce high quality code and have an advantage by being in the same time zone.

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