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Under pressure to cut costs in a weak and uncertain economy, U.S. corporations are creating a wave of tidal proportions to move labor-intensive business processes offshore, most notably to India. That wave has now reached commercial credit, collections and accounts receivable operations, plunging credit managers into a debate over just which activities should be "offshored" and which ones are critical to keep at home.
This recent allure of the Orient is hardly shrouded in mystery. It's all about cheap labor. You'd pay $75,000-$100,000 for a competent credit analyst in the Silicon Valley, notes John LaRocca, partner of Quote to Cash Process Consulting, Scottsdale, ...