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Sat, May 11, 2002 - Page 21 News List

India will reap profits of Internet revolution

IN THE FUTURE One researcher recently forecast that, by December, more than 80 percent of multinationals will use IT outsourcing to save money and increase flexibility

REUTERS , BOMBAY

As Englander noted, with distance no longer a technical or cost factor, decisions where to place call centers can be made entirely on other grounds.

Such as where wages and real estate costs are lowest. New Delhi was recently rated the world's second cheapest place to live, among 134 cities surveyed by the Economist Intelligence Unit. Bombay ranked 126th.

The cost of setting up operations can be cut further by renting or leasing space, computers and telecoms gear.

Some business groups estimate a multinational can typically recoup within a month the cost of setting up 10,000-strong operations in India.

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