IBM's India Acquisition Seen As Stamp Of Recognition For Outsourcing

BANGALORE, India (AP) -- IBM Corp.'s acquisition of an Indian outsourcing firm could trigger similar deals and strengthen the practice of "offshoring" white-collar work to India, industry experts said Thursday.

"We will see more such deals," said Pawan Kumar, who worked with IBM in 1996-2000, helping it establish outsourcing operations in India.

Scores of U.S. firms have cut costs by farming out routine office jobs to India and other countries where wages are significantly lower.

The outsourcing practice has ignited the resentment of labor unions and politicians in the United States, who criticize the loss of American jobs to cheap overseas labor. They say workers are made to pay with their livelihood for increased profits of corporations.

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