India: The hottest call centre destination

An E&Y European Attractiveness Survey said the US and China remain top two preferred countries for international decision makers with 41% votes.

NEW DELHI: India is the fourth most attractive investment country, while the most preferred location for call centres and back office functions. An E&Y European Attractiveness Survey said the US and China remain top two preferred countries for international decision makers with 41% votes.

India’s rating in 2006 is on par with last year, with 18% of investors citing it as a key choice. India also figured at number five among the top 10 countries for R&D centres.

It was placed after US/Canada , Germany, UK and France. However, the survey ‘Globalisation Act II: Team Europe Defends its Goals’ says the country shows few signs of being able to compete with China as an FDI destination.

The 2006 survey is also marked by a cooling off of China’s attractiveness, to the benefit of more mature locations, notably Western Europe. Whilst remaining attractive, China’s pull has considerably reduced since the European Attractiveness Survey 2005 (52%).

The survey said while SMEs are most attracted by China (46%), there has been a decline in the level of interest expressed by MNCs: 38%, compared with 58% a year earlier. While China achieves the lead position for manufacturing operations with 18% votes, India has emerged as the top country for call centres with 14%.

However, its findings indicate an 8% fall in India’s attractiveness for call centre functions . Germany and US/Canada are trailing India with an 11% share. The survey reflects the maturing of the location decision-making process. Analysis of the criteria used by senior executives in selecting locations for investment projects reveals that their decisions can be divided to the survey.
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