Apple Reportedly Plans to Quadruple Its Outsourcing Spending in India

News | Sunday February 12 2012 11:39 PM | Comments (0) Tags: , , , , , ,

– India’s leading business newspaper reports that Apple ‘s Chief Information Officer Niall O’Connor visited Bangalore from January 29th and January 31st to meet top executives at Infosys and Wipro, two of India’s leading software outsourcing companies.
, Apple outsources software application development and testing worth about 100 million dollars to Indian companies, which is a fifth of its global outsourcing spending. The report claims that Apple is now looking to quadruple its spending in India.
Between January 29 and 31, the Apple CIO met top executives at Infosys and Wipro, but both the companies refused to speak. For Infosys, Apple already contributes around $50 million in annual business. Wipro, which started working with Apple a few years ago on testing of software applications, is also growing its revenues from the company. [..]
[..] For Indian technology firms continuously under pressure from customers such as General Electric, known for outsourcing more at lower rates, Apple is among the most desired accounts to have because of high profitability and quality of work. 
Apple and GE would make two extremes for the outsourcing industry – Apple handles even commoditised applications like its ERP with very high sophistication and treats vendors better,” said a person with knowledge of Apple ‘s software outsourcing. 
Not surprisingly,
reports that Indian companies laid out the red carpet for the CIO of the world’s most valuable company.
The report however does not provide any details about the outcome of the meetings but cites increased public scrutiny in the US of companies creating jobs overseas as one of the top reasons why Apple is so secretive about outsourcing to India.

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