The Global Innovation Migration to Low-cost Engineering

by Dave

 - BusinessWeek

American companies are also moving major portions of their operations abroad. IBM employs nearly 100,000 workers in India, HP has 26,000, Microsoft (MSFT) has 5,500, and Cisco (CSCO) has 5,000. Pfizer employs 4,000 in China and 2,300 in India. These companies are developing some of their most sophisticated products abroad, often to target the same markets.

What’s more, foreign countries are increasingly up to the task. India’s outsourcing industry has moved from back office to business process to core R&D work once thought immune to outsourcing. Indian call-center operators such as Genpact are now developing processes to enhance patient care for American hospitals and reengineering financial operations for Australian banks. Top IT outsourcer Infosys is developing advanced hybrid structures for U.S. material manufacturers.

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