Where GE goes, will others follow?
GE sells majority stake in its Indian outsourcing unit.
Charles Cooper Former Executive Editor / News
Charles Cooper was an executive editor at CNET News. He has covered technology and business for more than 25 years, working at CBSNews.com, the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet.
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.