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Google follows Apple’s business strategy by outsourcing chunks of work to India

31 Mar 2016 12:00 AM | Anonymous

Some highly rewarding outsourcing deals may be on the horizon for Indian service providers now that Google is considering outsourcing more work to India, the Indian Economic Times has reported.

Google is becoming more open-minded in this regard and has started handing out more business to companies such as US-based Cognizant, which currently has most of its employees in India.

Google spends several hundreds of millions of dollars annually on IT – one of the highest in the Fortune 500 – analysts estimate. The new strategy includes the outsourcing of non-core parts of its business to IT service firms, such as software development, IT infrastructure management and maintenance.

A top US-based executive at a technology firm currently managing software projects for Google said: “Outsourcing is not something that’s new to Google, it has always give out small amounts of work to third-party service providers.”

Third-party specialists such as Infosys and Genpact have handled software maintenance and development projects for Google over the past decade. “What has happened though is that Google sees greater value in outsourcing non-core parts of business, as it is more cost effective”, he added.

Infosys and Wipro have been cited as the companies that stand to benefit the most from Google’s new outsourcing strategy.

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