"High attrition rates result in higher costs for the outsourcing customer. Smaller IT services industries in Latin America, Eastern Europe and Russia have more stable IT workforces", a report has said. The report said that though Indian service providers offer strong English skills, they have limited non-English capabilities. It noted that the language issue works both ways and Russian, Chinese and Latin American service providers have weaker English skills than their Indian competitors. Although India is a stable democracy, many companies are concerned that its "relationship with Pakistan and China, natural disasters, and cultural and religious diversity may destabilise the country and are looking to non-India locations in order to minimise the risk of geo-political destabilisation", the report said. It also noted that major Indian service providers were not resting on their low-cost, high-quality laurels and ignoring foreign competition. They were expanding globally and in their non-English capabilities. TCS has opened Spanish and Portuguese-centric development centres in Brazil and Uruguay and is investing in innovative service delivery models. Wipro is working with a large automotive manufacturing company and creating a factory model for delivering application integration. Companies are also investing in expanding their consulting capabilities to provide higher value transformation services, the report said
