India’s technological success is challenging the definitions of globalization and Corporate America is becoming concerned. “There’s just no place left to squeeze” costs in the U.S., says Chris Disher, a Booz Allen Hamilton Inc. outsourcing specialist.

“That’s why every CEO is looking at India, and every board is asking about it.” neoIT, a consultant advising U.S. clients on how to set up shop in India, says it has been deluged by big companies that have been slow to move offshore.

“It is getting to a state where companies are literally desperate,” says Bangalore-based neoIT managing partner Avinash Vashistha.