India most preferred to set up back-end IT units: Report

MUMBAI: India has emerged as the most preferred destination for global enterprises to set up their back-end information technology units or captive units in 2010, consultancy firm Everest Group said in a report.

"India witnessed the maximum activity, followed by other regions in Asia and the Philippines," a release issued by the consultancy said.

Unlike the practice of outsourced work wherein an Indian company erects a facility and employs professionals, captive unit involves a multinational corporation setting up its own unit in a country, attracted usually by the talent pool of that country.

Among those who set up facilities in India in 2010 include Microsoft which set up a development centre in Bangalore, audit firm PricewaterhouseCoopers' centre in Kolkata and Credit Suisse's facility in Mumbai, a spokesperson for Everest said.

Globally, 2010 observed a positive surge with the number of captive set-ups exceeding the divestures, the report added.

The year also saw India continuing to lead in the offshore market activity, Everest said, adding the country reported the setting-up of 39 delivery centres followed by Phillipines' 25 and China's 16, the release said.