Price also blamed a "lack of awareness" about offshoring, when commenting on the findings of the 2006 State of the CIO report by CIO magazine, in which only 4 percent of local organizations listed India as their preferred destination for offshore outsourcing.

Of the 275 CIOs surveyed, 83 percent said they would not be going offshore for their outsourcing needs.

"Most businesses that are reluctant to outsource suffer from a fear factor," Price said.

"Ultimately it comes down to communication, [which] breaks down misconceptions about outsourcing."

NIIT Technologies CEO Arvind Thakur said there is even more fear around outsourcing infrastructure management, a market potentially worth US$80 billion.