Agony of US companies in INDIA.

Hi Guys , wana catch u guys up with the news and the cause of a reverse trend in INDIA's off-shoring.

Last night i was reading a news article from TOI that tells that many US based companies that had their back offices in India are closing them down. Closing only the offices and not the business, it was kind of surprise to me, i didn't understood why will a company close its back office in India when its keeping the Line of Business(LOB) alive. Big Companies like Citigroup Inc. and insurance firms AXA SA and Aviva PLC, among others, had sold offshore computer-programming shops and other operations in India. They are leaving after selling these IT-centres to indian outsourcing companies like TCS and Wipro.

The primary reason being they do not have enough strategies to deal with the rising pay packages of Indian Techies and hence the rising cost of their back offices. They are adopting new strategies to sell these back offices to service providers so that they can sit back and relax while the work still goes more or less the same way.

The second reason being the US president Obama, which is discouraging off-shoring more than the Outsourcing. There has been a serious impact of the US government policies lately.

The third one because of which they are selling these to Indian service provides is the trust in the Indian IT sector. These companies like TCS, WIPRO, INFY, COGNI etc have done fairly even in the worst kind of market and are trust worthy.

May be their moves are right or may be they are wrong, we Indian won't suffer anyways.