China tops the list of offshoring destinations chosen by Asia-based financial institutions, said a statement by Price Waterhouse Coopers (PWC), a world renowned consultancy.

According to a survey conducted by PWC and Economist Intelligence Unit (EIU), an Economist Group business which provides country analysis, India follows closely behind China on the list, but currently accounts for the largest share of these institutions' offshore headcount.

The survey predicts that India might lose that spot to China in three years due to the increase of labor costs, which is rising 40 percent to 60 percent every year in some places in India.

Although cost saving is ranked as the principal driver of offshoring, institutions surveyed also concern about finding qualified staff, service quality, as well as security of intellectual property and data privacy at offshore centers, said the statement.

The survey was conducted in June and July this year with a participation of executives from 156 institutions in Asia, Europe and North America.

Source: Xinhua