44) Environment of Competition

Malaysia was selected because of the competitive expand environment of itself, said Raju, whose company is distributing work to locations where "it makes the most business sense."

Wipro will reach the 100 employees by adding those hired in Mexico, also, it will invest in other lower-cost locations, said by Azim Premji, who in August paid 600 million dollars to buy outsourcing firm based on US Infocrossing to serve American clients.

Mumbai-based Tata Consultancy, India's top software maker, opened a centre in Guadalajara of Mexican city with 500 employees and said it will employ "thousands more" in the following 5 years.

Mexico shares a similar time zone with and is within five hours flying distance from any place in US, enabling TCS to provide "nearshore services" to clients, the company said.

Infosys Technologies opened a 400-person facility in the Czech Republic to service European clients and purchased the service centres of Royal Philips in Poland and also Thailand which is next to India. It's also weighing potential gain.

In the country, wage bills are rising as Indian firms compete with multinationals to hire and keep scarce software talent.

The IT industry's average annual salary rose 11 percent this year with the number of 620,000 rupees (which is 15,320 dollars), said a survey by IDC India, the market-research firm, for Dataquest magazine, a considerable amount in a country where the per capita income is less than 900 dollars.

"Indian tech companies must find a way out of this ever increasing wage rise as rupee appreciation squeezes their margins further," said the industry survey.

Rupee is rising on inflows of billions of dollars into one economy growing nine percent a year.

But costs alone are not driving the "dispersal of the IT industry around the globe," said Kiran Karnik, who is the president of the Industry Grouping National Association of Software and Service Companies, or Nasscom.

"Cost optimization is just one reason," he said. "Proximity to clients is also important, both geographically and culturally. If you want to serve clients in the US or Spanish-speaking Latin America, it makes sense to be in Mexico.