Has the erosion of Indian service provider dominance begun?

An Indian Economic Times report on the increasing competition facing India’s outsourcing services giants could be one to watch this year.

The report says that companies in places such as Brazil, Mexico and Israel are beginning to eat into the customer bases of the Indian companies.

This combined with the increased take up of cloud computing see companies such as Wipro, Tata, Mahindra Satyam, Infosys and Cognizant face huge challenges.

These companies have remained strong despite the recession but could it be real competition to their low cost approach that gets them?

The London School of Economics carried out a survey last year of alternatives to traditional offshore destinations. It looked at 14 non-Bric (non Brazil, India, Russia and China) locations. These were: Belarus, Bulgaria, Costa Rica, Czech Republic, Egypt, Mexico, Morocco, Philippines, Poland, Romania, Slovakia, Tunisia, Venezuela and Vietnam.

Co-author professor Leslie Wilcox said there is a shortage of information about offshore destinations other than those in the Bric countries.

So which offshore destinations will win in 2010?