The cost advantage of offshoring <A HREF="http://www.eweek.com/article2/0,1895,2106394,00.asp?kc=EWNAVEMNL032207EOAD">declined in 2006,</A> found the Global Services Location Index released by A.T. Kearney, a Washington-based global consulting firm.

The report found that although the wage advantage of offshoring locations for office services is set to last for another 20 years, it is on the decline as offshore wages for IT, business process and call center services have risen. But even under the most aggressive projections of wage inflation and currency appreciation, however, offshore locations will still have the price advantage for the foreseeable future, found the report.