Hybrid strategy

One of the key transformations currently taking place is the concept of the hybrid outsourcer. What if you are an American company threatened by a lower cost Indian competitor? Simply set up an Indian sub to provide the same services as the Indian competitor at the same price!

There have been a plethora of news articles recently outlining this strategy. One key announcement came from IBM which stated that it was going to be increasing its number of employees to 50,000 in India. Capgemini said it will be increasing its Indian employees from 4,000 to 10,000 by 2007. Line56.com: Outsourcing Strategy Shift