This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Indian Outsourcers Living Large on Demand

"We're keeping an eye on them [multinationals], but everyone is growing at a fast-enough rate at this point that [the Indian firms] are all doing fine," Parower says. "And the Indian guys are winning bigger deals."

Indeed, while the multinationals are suffering from shrinking contracts as deals become unbundled, Indian firms are seeing their contract sizes grow.

Earlier this year, Infosys and Tata Consulting Services won their single-largest contracts to date as part of an even bigger package awarded by Dutch giant ABN Amro (ABN ).

The China Challenge

Meanwhile, fears of China stealing business from India continue to swirl, although industry insiders doubt it will happen any time soon.

"China generally has a better infrastructure than India does because it's been a leading manufacturing center for so long," explains John Delaney, an attorney with Morrison & Foerster in New York who negotiates outsourcing transactions.

"But India, because it's a capitalist democracy, has a legal system that, although not perfect, is much more responsive to the needs of businesses and Westerners," he says.

Also not to be overlooked: India's English-language advantage over China. In China, English-speaking engineers command salaries 20% to 25% higher than India, according to Gilford Securities analyst Ashish Thadhani.

So, at least for next year, look to India to continue to remain the sweet spot of offshoring.

Get Jim Cramer's picks for 2006.
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EDS $0.64 0.00%
ACN $112.92 0.00%
CTSH $58.37 0.00%
IBM $145.94 0.00%
INFY $18.80 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs