Outsourcing biggies are on expansion sprees. In Q3 ’07 outsourcing majors, whether they classify themselves on the basis of their geographical presence or by the kind of processes they provide, seem to be actively drafting their future plans — especially to build or expand their network in Asia. Many of them are even acquiring companies in Asia.

Interestingly, a recently published The Ernst and Young European Attractiveness Survey 2007 also supports the fact that Asia’s attractiveness amongst foreign investors is rapidly rising. In fact, the survey cites both India and China amongst the top three most attractive countries. While 18 percent of respondents said that India was amongst their top three preferences in 2006, this figure reached 26 percent in 2007. China’s attractiveness has also increased to 48 percent in 2007 from 41 percent a year ago.

Whether its Accenture that opened a BPO center in Cebu (in Philippines) or RR Donnelley & Sons that established BPO facility in Kerala (in India), the action has already begun. Now, global companies are even revealing their future investment plans for Asia. For example, Boeing — an aerospace and defense company — has recently revealed its plans to pilot a captive unit India across the aerospace spectrum, including manufacturing, engineering, BPO, KPO, maintenance and raw material sourcing. Convergys is another company that plans to expand in Bacolod City, Philippines in the Q1 ’08.

Similarly, British telco BT opened a tech-services and an R&D center in China in Sept. '07, and has a big future plans to expand in other Asian countries. In order to take their figures higher from current Indian IT and BPO exports of $500 million, they plan to do what it takes. Indicating the company’s strategy in this regard, company's Chairman and MD for India operations says, “We move to the places where our customers ask us to go."

While companies from across the world are increasing their presence in Asia, the Asian companies are also gearing up for the same. For instance, India-based offshore business process outsourcing (BPO) and IT services and solutions provider HCL also has its strategy ready for the continent. “Being the fastest growing IT-services company of India, we are strategically diversifying our focus from the U.S. to Europe and Asia,” said Anil Channa, Executive VP, Finance, HCL Technologies.

Most recently, Satyam revealed its plans to open its largest software hub outside India with 2,000 employees by the end of this decade.

Why Asia:   Young and skilled talent pool Cheaper labor Fluency in English language Low cost of office land/rentals Low operating costs Supportive governments Well qualified talent pool Tax incentives Active software and services associations such as Nasscom.