Growing number of firms are looking to countries other than India for their technology outsourcing due to a rise in staffing and cost-cutting issues in the country.

Areas such as Eastern Europe and Latin America have been the beneficiaries as smaller Indian firms especially cut staff to cut costs and improve profitability.

This has been prompted by the poor performance of the US dollar against the rupee, which means that income for these firms from America is worth less in relative terms.

While the major outsourcing giants in India, such as Wipro and Infosys, have weathered this storm, it is these smaller businesses that have felt the brunt of reduced revenues - and so have chosen to cut staff to balance the books.

Unfortunately for India IT outsourcers, reducing staff members does not inspire confidence in the market and so other outsourcing areas have reaped the benefits as firms switch out of fear that their outsourcing partner may not be around for a great time longer.

The Philippines has been predicted to be major beneficiary of moves away from India due to the burgeoning development of its outsourcing industry and the support of this growth provided by the country's government.