This morning's announcement that General Electric will sell a 60% majority stake in its global outsourcing business speaks volumes about the future of offshoring.
GE was one of the early American companies to tap India's outsourcing potential. But the outsourcing unit limited its service to GE and its customers.
That restriction no longer need apply now that General Atlantic Partners and Oak Hill Capital Partners are paying $500 million for a majority ownership position in GE Capital International Services. Should they choose, the new equity owners can now widen the scope of the business to contract with any interested clients that knock on their doors. The beginning of a trend? You better believe it.