EBay is hiring for a development center it is setting up in Bangalore, its second in the country.

Wipro, one of India's top outsourcers, reported slow revenue growth in U.S. dollar terms for the quarter ended March 31, and issued muted guidance for the next quarter, reflecting an uncertain outsourcing market.

India's largest outsourcer, Tata Consultancy Services, posted high revenue and profit growth in U.S. dollar terms for the quarter ended March 31, and said the market for its services continues to be strong.

Infosys' revenue in its fourth quarter and full fiscal year ended March 31 fell short of guidance, as global markets for its services are recovering very slowly, the company said Friday.

Indian outsourcers employed 107,000 staff in the U.S. in the Indian fiscal year ended March 31, 2011, in addition to providing indirect employment to 175,000 people, according to a study to be released in the U.S. by the National Association of Software and Services Companies (Nasscom) on Wednesday.

Two weeks ago, the CIO of Texas penned a seven-page letter outlining the chronic failures of the state's nearly four-year outsourcing relationship - a deal the Texas governor had briefly suspended in 2008 citing service delivery problems that he said put the state's agencies in danger.

Whether any future U.S. jobs bills will contain anti-offshoring measures remains up in the air. But outsourcing customers don't have to wait to protect themselves from potential protectionist legislation.

Outsourcing prices dropped overall in 2009, and industry watchers expect the downward trend to continue next year. It's not just the global economic slowdown that's sending IT service prices south, it is also the increased use of offshoring, pricing pressure from customers, and a reduction in vendors' services.

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Public sector outsourcing is "in," as state and local IT leaders contend with shrinking budgets, limited human resources, and increasing demand for IT services. "There appears to be a perfect storm for IT outsourcing at the state and local level today," says Jason Khan, chief technology strategist for Washington, D.C.-based Touchstone Consulting Group.