Offshore firms target IT infrastructure outsourcing

23.01.2006

But most of Perot's employee growth in recent years has been in India, according to Mc-Claskey. He said he isn't worried that the rapid workforce growth will affect his ability to keep wages from rising too quickly or prevent him from finding people with the right skills in India.

Bangalore, where one of Perot's facilities is located, is India's equivalent of Silicon Valley, but the company also has an office in Noida, a suburb of Delhi. And McClaskey said there are several hundred other cities in India with the required skill levels and educational facilities, as well as a wage advantage over Bangalore.

'Labor arbitrage'

"I think we are going to see labor arbitrage in India for a long, long time, and I think it's going to move around geographies inside of India," said McClaskey, referring to the practice of reducing costs through the use of lower-cost labor.

Wipro is also offering remote infrastructure-management services. Sridhar Ramasubbu, general manager of Wipro's financials and investor relations office in India, said infrastructure management now accounts for about 7 percent of the company's revenue, which totaled US$617 million in the quarter that ended Dec. 31.