Outsourcing enters consolidation phase

The outsourcing market is entering a period of consolidation, and in the process, it is discovering new outsourcing opportunities in such exotic new locales as…the United States? This week, India's Wipro said it was acquiring U.S.-based infrastructure management services provider Infocrossing for $600 million. Through the acquisition, Wipro said it plans to open several software development and IT services facilities in the U.S. It will open a software development facility in Atlanta and is also considering offices in Raleigh, NC, Austin, TX, and Richmond, VA. Wipro expects to have 1,000 employees in its Atlanta location within three years.

Meanwhile, Sierra Atlantic, another outsourcing firm, is moving beyond India and setting up shop in China--also through acquisition. The company is based in Freemont, CA, but runs most of its operations out of India. "We have to have more cost effective [options]," the CEO said in an InformationWeek article. "India has been a significant center [for outsourcing but] we believe China is just about the only place that has both the quality [infrastructure] and skills for the services industry for the long term," the CEO said.

Check out more information on Wipro's plans:
- read the article in InformationWeek

And for more on Sierra Atlantic:
- read all the details in this InformationWeek article