• Face in the West: Though companies have been outsourcing to India for over a decade now, voice based services dominated. As Indian talent and education gains recognition, other services termed as knowledge based outsourcing have found their way into the country. However, it also lodges focus on issues such as credibility of vendors, intellectual property rights, etc. Vendors have realized that it helps to locate centers closer to their clients. Clients exude more confidence when they have an office and people to deal with directly.
• Multi-lingual capabilities: As international clients enter the scene so does the need for multi-lingual skills. While the English speaking services are being catered to by the Indians, expertise in European, Latin American and other Asian languages is hard to come by. Even companies based in the US have end clients that require services in Latin American or other European languages such as Spanish, French, etc. With global languages not being the forte of the Indian work force, centers in other low cost destinations such as China to cater to the Japanese clients, Latin American countries, and East European countries appear to be the best alternative.
• Time Zone issues: One of the primary reasons for India being the preferred outsourcing destination was the time difference of 12 hours with the western world. This ensured 24-hour continuity in work. However, not all services are comfortable with this difference as this is usually dictated by the kind of services being outsourced
• Increased brand awareness: Companies that have footprints across various countries also have an advantage when it comes to listing on the bourses in the western world. It gives them the necessary leverage of brand awareness among investors. For instance, TCS following an aggressive expansion strategy with centers in Brazil and Mexico has also revealed its plans to list.
• Risk Management: The other driver behind opening centers in these locations is risk management. Political and natural uncertainties have the potential to wreck havoc in the outsourcing industry, centers at diversified locations can ensure uninterrupted services.

More and more and Indian service vendors are gradually looking at overseas expansion as an essential part of sustaining growth. However the tougher part is deciding on a location that justifies the expansion strategy and can typically leverage the location advantages. With globalization being the flavor, reasons abound that make this a ‘must take’ decision. One other aspect that vendors consider while expanding is exchange risk hedging. Currency fluctuations pose challenges that are difficult to control. Though primary reasons for vendors to opt for centers in other countries are client centric, this is one advantage that they can use effectively to gain better control on revenues/project valuation, with a well thought out decision.

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