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WHY INDIA: Indian workers assembling computers at a Hewlett-Packard India manufacturing facility in Bangalore. Indian workers cost a fraction of what those in the US or the UK cost.

IT research firm Gartner says about 500,000 jobs in the US software and computer services arena, from a total of about of the 10.3 million jobs, may shift to nations like India within 18 months.

A T Kearney estimates that American automotive industry, including manufacturers and suppliers, spend $9 billion annually on BPO for cost reduction and profitability improvement. India is getting a major pie of that.

Giant US pharma firms can pare the cost of developing a new drug, currently estimated at between $600 million and $900 million, by as much as $200 million if development work is outsourced to India, says consultancy firm McKinsey & Co.

Photo: Indranil Mukherjee/AFP/Getty Images

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