There is no doubt that economics and other combinations along with India's work force and technical abilities make India a prime location for outsourcing work. After USA and EU, Japan has become the latest entrant to jump on to India's outsourcing Bandwagon as Japanese information technology companies are mapping out a new base to outsource software development in India.

Japanese firms, which have long shifted their software development to China for low costs, are now faced with a lack of local engineers and deciding to expand their India operations.

According to a Japanese business daily, more and more Japanese companies are now looking at India rather than China to expand their businesses.