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Outsourcing consultants feature prominently in the UK governments plans. According to Kable’s estimates, last year the central government spent more than GBP 1.5 Billion on outsourcing consultants, 35 percent of its outsourced spending, against GBP 1 Billion on IT.

Lloyds TSB’s Director-IT, Igor Andronov, expects the project to increase the company’s cost efficiency, enhance the flexibility of its IT infrastructure, and help the staff to be more responsive to customer needs. IBM said the implementation would be the largest combined network of its type ever undertaken in Europe.

Offshoring IT jobs to lower cost countries is now regarded as essential in industries where ones competitors are doing so, because contracting with offshore service providers affords a company the flexibility to adjust its personnel strength to meet business requirements at a lower cost and often with a higher level of expertise.

An analysis of the market reveals that if a company based in a country without legislative restrictions regarding the exportation of IT jobs sells its products and services in a country that has such restrictions, the company not limited by such legislation will possess a distinct market advantage.

"In effect, therefore, the nation that places restrictions on the export of IT jobs will hobble its own businesses and could be inadvertently legislating the destruction of millions of additional jobs in the future as a result," cautions Frost & Sullivan Industry Analyst Jarad Carleton. "This is crucial to understanding why the exportation of IT jobs to lower cost countries cannot be arbitrarily halted by legislation in one or two developed countries." To be effective, any such legislation to protect IT jobs in the developed regions of the world would require the unlikely scenario of a global alliance of developed governments working in concert.

Further, Mr. Carleton goes on to state that, “Multinational corporations can and will use offshore subsidiaries to circumvent the law in other parts of the world when profitability is at stake, provided executives cannot be held legally liable in the home country.”

The new campus is to be built on 6.6 acres of land in the Hitech City, and will offer multiple services to include: sales, customer care, technical support, email support, and shared services with more functions to be added as needed in the future.

Romi Malhotra, managing director for Dell India, states, “Building our own campus is a clear indication of Dell's long-term commitment to India and Hyderabad. The customer contact centers in India have transitioned into a premier operation for Dell.”

In the past, Lehman had outsourced some of its IT services to companies such as Wipro and TCS. Although it withdrew part of that work from Wipro earlier this year, Lehman’s decision to set up its own captive center reaffirms its faith in India.