Silicon Valley: North American automotive executives have picked India over China as the most popular offshore destination for the migration of business processing activities, according to a new survey.

Nine out of 10 executives, surveyed by management consulting firm AT Kearney recently, said they intend to move certain non-manufacturing business processes to low-cost offshore locations.

The most popular destination was India, with almost a quarter of the respondents opting for it, followed by China with 15 per cent and Mexico with 13 per cent.

"India is clearly the destination of choice for business processing services across all industries," said Nagi Palle, co-author of the research and a principal at AT Kearney.

"There are tens of thousands of well-educated, English-speaking and highly motivated engineering, IT and accounting professionals in India with the skills and capabilities auto manufacturers and suppliers need for offshore business processing," he said.

AT Kearney estimates the North American automotive industry, including manufacturers and suppliers, spends approximately $ 9 billion annually on business processes with the potential to be offshored, representing an enormous opportunity for cost-reduction and profitability improvement.

PTI