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Last Updated: Wednesday, 7 April, 2004, 16:59 GMT 17:59 UK
IBM buys into Indian outsourcing
Daksh
Computer giant IBM has agreed to buy India's third largest business outsourcing firm.

The price tag for Daksh, based near Delhi, was not revealed but is thought to be about $150m-200m (80m-110m).

The deal is believed to be the biggest to date in the Indian outsourcing business, one of the country's most prominent success stories.

IBM already has extensive operations in India, most of which are also running business services such as call centres.

But the deal will tie the computer firm squarely into the bitter row within the US over whether outsourcing is costing US citizens their jobs.

Net gains?

IBM says it will create about 4,500 net new jobs in the US during 2004, although 3,000 will move overseas to developing nations.

Still, US investors have accused other companies doing the same thing of destroying white-collar jobs at home.

By adding Daksh's 6,000 staff to its own 9,000-strong workforce in India, IBM is treading a well-worn path.

Many US firms are taking advantage of India's pool of well-educated, English-speaking graduates to offer business back-office services such as accounting and insurance claim processing - at pay rates a fraction of those prevalent in the US.


SEE ALSO:
Outsourcing: Long-term gains for all
29 Mar 04  |  South Asia
India dismisses outsourcing fears
09 Feb 04  |  Business
India's burgeoning call centres
02 Dec 03  |  South Asia
UK firms size up Indian benefits
02 Dec 03  |  Business
India's economy: Can the boom last?
07 Jan 04  |  South Asia


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