India continues to be the most attractive destination for offshoring of services such as information technology. It remains the best offshore destination by a wide margin even if wage inflation and the mergence of lower-cost countries decreased its overall lead, the annual ranking by consulting firm A T Kearney has said. The gap between India and the second-ranked country, China, is larger than the gap between the next nine countries combined

India's benefit over other competing destinations in the Offshore IT outsourcing business is a vast pool of technically skilled human resource fluent in the English language, world-class quality offerings and ever encouraging Governmental IT policy. For Indian government s this sector has become the core sector for generation of export revenues. Indian education system produces highest number of technical graduates in the world every year with has a 1 billion English speaking population. India produces nearly 350,000 engineering graduates every year. All of Europe produces 100,000 engineering graduates a year, and America produces only 70,000.
Offshore Outsourcing players from India have shaped a powerful value proposition in the offshore software outsourcing market around the globe. India produces nearly 350,000 engineering graduates every year.

Salary cost in India is considerably lower as compared to the same of developed nations. Offshore Software Services in India is targeted by more than half of all Fortune 500 companies today. While a majority of them outsource their services, there are many who have already established their presence in India and contributing dynamically to the market of offshore software development in India.