Intellectual Capital Will Drive Indian Market

NEW YORK CITY-”Offshoring is not just a buzzword, it’s a key strategy for global companies,” said Rohini Saluja, national manager, client solutions, Cushman & Wakefield India, during a C&W symposium dealing with offshoring trends and the Indian investment scenario. She noted that the newest trend is that service type of businesses are “moving up the value chain. Real estate and infrastructure are key in offshoring.” Approximately 43.2 million sf of development in IT parks is expected over the next few years.

While costs are the major driver for offshoring in India–a software developer in the US makes an average of $60,000 per year, while the same job function in India has a salary of $12,000–other reasons businesses are looking to India include improving a business focus, risk diversification and gaining access to intellectual capital. That sentiment was echoed by Arthur Mirante, president, global client development for Cushman & Wakefield. “Intellectual capital, world-class talent is the attribute, not cheap labor, that will drive the Indian market.”