Indian Outsourcing Firms Make Global Push In China, America

From: outsource360

While U.S. workers and corporations continue to digest the idea that college grads on the other side of the planet can do the same jobs for one-third the price, the very firms that have made these shifts possible are heading to new countries — and, in some cases, circling back to the U.S.

Cognizant Technology, (CTSH) Infosys, (INFY) Tata Consultancy Services and Wipro, (WIT) companies whose heavily India-based staff develop and maintain big IT systems for their North American and European clients, have started to set up operations in other cheap-labor locales such as China and the Czech Republic.

At the same time, they are recruiting more experienced U.S.-based workers to offer the business consulting typically provided by firms like Accenture (ACN) and McKinsey.

Stoking these ambitions are growth rates that outshine those of their U.S. tech service rivals. The Indian firms have increased annual sales by at least 40% for each of the past two years, and investors have taken note.

Take Bangalore-based Wipro. With $1.9 billion in annual sales, it's just one-tenth the size of EDS. (EDS) But Wipro's market capitalization tops that of its Texas competitor's by more than $5 billion.

Strong sales and stock prices have given the Indian firms momentum to expand in countries like China.

Indian firms have invested close to $50 million in China and employ nearly 2,000 people there, says Indian trade group NASSCOM.

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