The offshore juggernaut shows no signs of slowing down, but it is changing direction. Four out of five large UK companies intend to offshore in the next two to three years, according outsourcing consultancy TPI.
But instead of using external service providers, many will set up their own operations, known as ‘captives’ in India, China and other low-cost locations.
Fifteen of the FTSE 100 companies have captives in India.
Total headcount for the top 20 captives has increased by nearly three quarters in the last year, reaching 95,225, according to TPI. The total number working in India in IT and business process management has only grown a quarter over the same period.
India is still the top destination for outsourcing, used by 75% of the 100 senior UK executives surveyed, followed by central and eastern Europe with 28% and China 25%.