India steps up as Asia's powerhouse

weekly roundup Just like the United States took over the reins as the world's leading economic powerhouse a few decades back, India and China--with their IT prowess and sheer market size--have been tipped to be next in line to become future economic giants. And this week, it seems that India has taken its first step toward the throne.

Outsourcers in the country have not only outperformed traditional big players such as Hewlett-Packard and IBM, they've surged past the world's leading pack of six.

Indian service providers Satyam, Infosys, Patni Systems, Tata Consulting Services and HCL, have been ranked 2nd, 5th, 6th, 7th and 8th respectively, in the annual Black Book of Outsourcing study which rates the world's top outsourcing vendors. Former pack leader IBM, sits at 35 this year while HP came in at lucky number 13.

India's rise to the top shouldn't come as a surprise, particularly when we look at how the country's service providers have been beefing up its investments and winning mega deal after mega deal.

In fact, more than 75 percent of new research and development facilities over the next three years will be found in China and India. By the end of 2007, both countries are expected to account for 31 percent of the global R&D staff. In addition, China and India will contribute 41 percent and 24 percent, respectively, of incremental growths in the world's IT spending by the end of this year.

So, if your company isn't already in these markets, you might want to start thinking about whether you should be.

In other news headlines this week, find out what Indian bloggers are busy with these days, and why Singapore will also be bustling with activities this weekend.

Also, read about what Linux and Windows will have in common over the next five years, and learn why entrepreneurs shouldn't be afraid of Microsoft.