Remember when offshoring was synonymous with wild cost reductions and exploding profits? Ten years ago, it was common to hear of companies slashing costs by opening offshore arms. Indeed, India-based solution providers including Cognizant and Tata have profited handsomely by offering U.S. companies offshore services at bargain prices. However, with recent reports of salaries increasing in countries such as India, the savings are more subtle. Yet companies are still sending certain tasks " like call centers and software development " offshore, and they are adding jobs, such as knowledge processing, to the mix as well. Why? Today, it's not (just) about saving money. VARs are using offshore centers in India (expanding from Bangalore into more rural regions) as well as Latin America and China in an effort to establish a global presence for themselves and their customers in those countries. They are proceeding more deliberately, with their sights set on gaining a toehold on new markets and taking advantage of a ready, educated and eager workforce.
