Outsourcing companies are raking in profits as fears spread that there will be a global recession, but their reputation as haven investments should be taken with a grain of salt, analysts advise. The two largest Indian outsourcing groups in information technology, Tata Consultancy Services and Infosys Technologies, brought a smile to the faces of shareholders this month when they reported revenue growth in excess of 20 percent for the financial year that ended March 31. Their competitor, Wipro, was equally upbeat in its annual management statement, which suggested that businesses were still prepared to farm out activities to try to reduce operating costs and improve company focus. Unfortunately, behind the glad tidings lie some worrying trends. Revenue growth is slowing as Indian outsourcing companies weather an economic...
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