A T Kearney's 2016 Global Services Location Index (GSLI) rated India as number one out of the total 55 countries analysed.

China, Malaysia, Brazil, Indonesia, Thailand, The Philippines, Mexico, Chile and Poland respectively made up the top 10 list.

Off-shoring to India remains a high attractive proposition for many companies, said the study which also takes a deeper dive into optimal cities for off-shoring within the ranked countries.

One advantage of tier 3 cities is the relative affordability of real estate as facilities in Nagpur and Ahmedabad are 25 per cent to 30 percent cheaper than Kolkata and Delhi, the report said.

Another advantage is the relative availability of labour, its lower cost and lower attrition rates.

Many of these cities have highly developed educational infrastructure, ensuring fresh crops of qualified graduates for the foreseeable future, GSLI said.

India's undisputed industry leadership is facing a challenge from China which has become attractive with its recent devaluation of Renminbi and gains in educational skills and cultural adaptability.

The GSLI, launched in 2004, helps companies make key location decisions for offshoring and industry development projects with objective guidance.

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