A.T. Kearney released its annual Global Services Location Index naming Egypt and Mexico the fourth and the sixth most attractive location in the world for offshore services outsourcing. Compared to last year’s list Egypt has gone up two spots in 2011.

Johan Gott, manager of the A.T. Kearney’s Global Services Location Index stated, “We did our research before the unrest began. Emerging markets in general tend to be more risky than developed markets. You had the Mumbai attacks (of 2008) that at the time created uncertainty around India as a offshoring destination. In Thailand, there were the riots around Bangkok last year. These things happen. We don’t want to minimize the impact in Egypt. Short term, it’s a very serious issue. Long term, it’s too soon to tell.”

The list ranks 50 countries by considering financial aspect, people skills and availability, and business environment. Mexico from last year’s ranking went up five spots this year. It enjoys the sixth position even as narcotics-related violence continues in the country’s northern states.

However the first three spots in the A.T. Kearney’s index has been secured by India, China and Malayasia respectively. Gott says, “There’s India and then there’s everyone else. They have a very strong talent base. Their costs are still low. And most importantly, India has transformed itself from a provider of low-value code factory type work to move higher and higher up the value chain.” He adds, “China’s massive labor pool and low costs take some of the sting out of language issues and security concerns, but the country overall has placed less emphasis on services than it has on manufacturing.”