No company operating out of India needs telling that wages in the country have soared in line with the country's popularity as an offshoring destination, and a new study by Pierre Audoin Consultants (PAC) now claims that locations as diverse as China, Morocco and Hungary, are not only keeping pace but threatening to leave it standing.

The report analysed the rolling out of global delivery centres by the UK’s 20 largest IT services suppliers – Accenture, Capgemini, IBM and HP among them - and found that of the 21 centres opened since January 2007, just two were in India. Findings that offer further evidence of the threat to India’s traditional dominance.

However, despite the undoubted problems created by the country’s overheated labour market, India’s position as a global sourcing hub appears safe - for the time being at least.

The report found that BT Global Services, EDS, IBM and Tata Consultancy Services (TCS) had all opened sourcing facilities in the country since July 2006.