Predictions about the future of IT outsourcing suggest the industry is due to experience rapid growth next year, although India will retain its lead over emerging markets.

Analyst group Gartner suggested that 2008 will see as much as a 60 per cent increase in overseas outsourcing in Europe, while the US market will grow by 40 per cent.

Some of this expansion will head to areas such as Brazil, Mexico, Canada, Russia, and China as they establish their position in the sector.

However, the dominance of India will not be threatened, according to Gartner research vice-president Helen Huntley.

She told technology website the Register: "I don't think China will ever overtake India on offshore."

But Ms Huntley identified that the trend among Western firms is to manage their exposure to risk by spreading their IT outsourcing around a number of countries.

"Is it going to make sense to invest all in one country especially if something were to politically or geographically happen in that country?" she asked.

"Many think it makes more sense to distribute that service around different locations."