High end outsourcing
When the outsourcing biz began to make waves in India, it was more or less argued that all said and done, only low level manual jobs will be outsourced to India. Look what’s new : Most of the Indian firms are doing high tech product design and development and let some other US clients slap their brand and market wherever they want. This is I guess what we call moving up the value chain. Worldwide spending on offshore research and development and engineering, for instance, will increase more than eightfold to $12 billion by 2010, according to Gartner. Similarly, spending on so-called infrastructure outsourcing–such as remote network management–will grow from less than $250 million to as much as $4 billion in the same. A great opportunity for Indian firms India , in a way has a great talent pool(82,000 engineering undergraduates a year, versus about 60,000 in the United States) at a cheaper rate($9,000 a year, and a senior engineer with eight years' experience about $20,000) With companies like ,Wipro now have some 9,000 engineers designing products for about 100 companies, making it the world’s largest third-party R&D outsourcer, I guess the prediction that 10% of all IT work in US will come to India seems a possibility.