Chennai has emerged as the most attractive destination for offshoring services, closely followed by Hyderabad, a recent survey by US based A T Kerarney has revealed.

Releasing the company's Indian city services 'Attractiveness Index' for 2005, Marcy Beitle, vice-president, A T Kearney, told a press conference that Kolkota was emerging as a credible alternative to cities, with more companies setting up offshore services industries there.

Bangalore, which occupied the top slot in the previous years, had been pushed down due to lack of infrastructure, she said.

The support of present and past governments to the IT industry had made it possible for Chennai to become a favourite destination, she said.

The cities had been benchmarked as attractive, based on three major categories - financial costs, people's skills and business environment, she said.

India had focused on the development of information technology and IT infrastructure during the past decade and the country today offered the most mature supply base for offshore work across services and verticals, she said.

Chennai stole a march over other cities as the cost of living was low and the city has abundant supply of skilled labour, she said.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group