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Offshoring Region Asia


India first benefited from the offshoring trend as it has a large pool of English speaking people and technically proficient manpower. India's offshoring industry took root in low-end IT functions in the early 1990s and has since moved to back-office processes such as call centers and transaction processing. In the late 1990s, India's abundant and cheap software engineering talent combined with massive demand from the Y2K problem helped to move India up the value chain to attract large-scale software development projects.

Currently, India's engineering talent has made India the offshoring destination of global high-tech firms like HP, IBM, Intel, AMD, Microsoft, Oracle Corporation, Cisco, SAP, BEA and so on. Each of these companies is in the process of investing in India, to supposedly retain market share in the face of competition and cost-cutting measures of rivals and industry in general.

Due to inflation, high domestic interest rates, robust economic growth and increased IT offshoring, Indian IT sector has witnessed 10 - 15% wage growth in the 21st century. Consequently, Indian's operations and firms are concerned that they are becoming too expensive in comparison with competition from the other offshoring destinations. To maintain high growth rates, attempts have been made to go up the value chain and and diversify to other high-end work in addition to software and hardware engineering. These jobs include research and development, equity analysis, tax-return processing, radiological analysis, medical transcription, and more.

An example of a service provider from India successfully selling to Germany is FEA technics.

Feedback from German CIOs (benefits and hurdles) about Offshoring to India. B2B Sales Outsourcing
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