02:09 PM

Analyst Watch: India Reigns

A new research report indicates that the push by major companies to lower IT costs by moving key operations to developing countries such as India will continue to gather steam this year. The report, by Giga Information Group, says outsourcing to India will grow by 25% this year, because of what Giga terms its "incomparable quality and cost benefits." The research is the latest sign that India is a dominant player in the IT-services market. Bank of America has said it will outsource up to 1,100 jobs to Indian service providers this year. Giga also predicts that China could eventually rival India as an outsourcing center because of its "immense, inexpensive labor pool."

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