Indian big players, Tata Consultancy Services (TCS), Infosys and Wipro are losing contracts to nearshore rivals, including Ness Technologies of Israel, CPM Braxis of Brazil and Mexico-headquartered Softtek.

Emerging destinations are becoming increasingly attractive for top outsourcing customers such as GE, Citibank and several others seeking to work with local, specialised vendors instead of sending all projects to offshore locations like India, it was reported in the Times of India.

In order to combat this new trend India’s top tech firms, TCS, Infosys and Wipro, are growing their presence in the emerging markets of Latin America, Eastern Europe and Asia.

Jimit Arora, research director of outsourcing advisory firm Everest Group, has commented on the trend saying: “Some customers having 70-80 per cent of their offshore resources in India are realising that they need to look at the third category of suppliers that are local and niche.”