The Dao of Outsourcing

China daily recently reported Indian outsourcing giants are aggressively acquiring smaller Chinese outsourcing companies, including more than 40 local outsourcing companies in Shanghai.   Indian tier 1 outsourcing companies have been operating in China for years, but traditionally have built development centers rather than growing through acquisition.  There are several reasons for this significant shift in Indian outsourcing companies China market entry strategies.

Economic crisis – As sales slow or decrease in America and Europe, Indian companies need emerging markets to increase revenue.

Opportunistic acquisitions – A previous post on how the global economic downturn has affected Chinese outsourcing companies, mentioned that many smaller Chinese outsourcing companies are experiencing cash flow problems making them prime targets for acquisition.

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