Friday, October 19, 2007

Indian IT Firms Increase Outsourcing TO the U.S.

Indian IT and outsourcing companies earn revenues in dollars but pay most of their costs in rupees. Profit margins for these companies have been squeezed lately because: a) wages have been rising by 10-15% in India because of the high demand for workers and b) the dollar is trading at a 9-year low vs. the India rupee and has fallen by almost 15% in the last year.

Solution? Outsource to the U.S.

MUMBAI--Tata Consultancy Services plans to open two computer services centres in the U.S. in one of the biggest expansions by an Indian information technology outsourcing company in a developed market.

India’s largest computer services company, part of Tata Industries, said the first centre of 500-1000 people would open in Cincinnati, Ohio, by the end of this year or early next year, with the second to follow in late 2008 or early 2009 at an undisclosed location.

Bottom Line: Globalization works both ways.


3 Comments:

At 10/19/2007 9:21 AM, Blogger Walt G. said...

Are free markets actually at work if business decisions are made using currency exchanges instead of measures attainable by well-run companies such as efficiency? Possibly, with a globalized economy, there should only be one currency for all trading countries.

 
At 10/20/2007 6:09 AM, Anonymous Anonymous said...

yes indeed its happening,

visit : www.indiaoutsource.biz

this site provides all the information to outsoursing i guess

 
At 10/21/2007 9:41 PM, Anonymous Anonymous said...

Wipro is opening an "insourcing" center in Atlanta as well.

Further, Mr Premji said the company had set up its first delivery centre in the US at Atlanta, Georgia. The company expects to have around 200 people at its Atlanta centre. Wipro has received a subsidy from the State Government to set up the centre at Atlanta, he said.

 

Post a Comment

Links to this post:

Create a Link

<< Home