It is surprising but true. Cost benefit is no longer the most important reason for companies to outsource to destinations like India. Efficiency is the key driver, followed by quality and availability of manpower.

Low cost is fourth on the list, according to an online survey by outsourcing and consulting firm Hewitt Associates.

Quality of service was the most important factor the companies looked at while selecting offshore locations.

Around 23 per cent said the quality of service had exceeded their expectations while 62 per cent were pleased with the service. Around 15 per cent were not happy.

Around 53 per cent of the respondents in the survey said they were already outsourcing to low-cost, high-quality countries, while 11 per cent said their companies intended to outsource within the next year. The remaining 37 per cent said their companies had no plan to outsource in the near future.

The surveyed companies outsourced work to varied locations like India, China, Bangladesh, Mauritius, Italy, Russia, Sri Lanka, Taiwan and the US.

Companies chose locations depending on the availability of skilled manpower, infrastructure, political stability, and tax and other incentives. Interestingly, a number of companies said their decision would be swayed by other organisations doing similar work nearby.