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Engineering Services Outsourcing to Grow Creating Opportunities for Emerging Markets

Engineering Services Outsourcing to Grow Creating Opportunities for Emerging Markets

8 August 2006

Emerging markets are the hot targets for outsourcing engineering services, the sector which accounts for 2 percent of the global gross domestic product (GDP). Although the focus of outsourcing was initially to cut cost, it has given way to growth in the emerging markets.

According to a recent survey by Booz Allen Hamilton for National Association of Software and Service Companies (NASSCOM), decisions about locating engineering capabilities will turn on strategic drivers, such as access to growing markets and an expanded pool of skilled labor. In the engineering services sector, the high-tech and telecom segment is the dominant and fastest growing sector comprising 30 percent of the market.

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