Outsourcing firms on an expansion spree

In an economic slowdown companies tend to scale down their business in order to deal with reduced demand. But for outsourcing giants, this is not the case.

Executives of foreign outsourcing giants such as Cognizant and Hewlett-Packard said they plan to aggressively expand their business in China, where demand for outsourcing continues to grow, as companies are more willing to outsource their non-core business amid the financial crisis.

Henry Yang, the China head of Cognizant, said the company plans to increase its headcount in China from the current 800 to over 5,000 in the next three years.