The cost cutting in the region continues even as US corporations are lowering their labor costs by exporting jobs to China and India. "India has seen a meteoric rise in business process outsourcing over the past five years," according to the report.

"There are now more than 350,000 people working in IT outsourcing roles in India," the report adds. "This figure is expected to top one million by 2008. A significant portion of this BPO employment is in contact centers, with this sector alone expected to grow by 250,000 people by the end of 2003."

However, the political environments in both countries may cause some corporations to rethink outsourcing plans, Jones Lang LaSalle suggests. India's transportation system also is cited as a barrier to further growth.

While China and India will likely remain "the flavors of the month" for a while, cities in other countries, such as Hong Kong, Sydney and Auckland, are expected to see negative absorption in the months ahead. "The only cities outside of India and China to register net positive demand over the next six months are in Vietnam," according to the report, citing Ho Chi Mihn City and Hanoi. "This reflects the search for low cost manufacturing locations outside of China."

Meanwhile, corporate real estate executives charged with slashing occupancy costs are likely to consider cutting the number of workstations, Jones Lang LaSalle suggests. "Based on research by Jones Lang LaSalle in Sydney, we estimate that average savings of 5% to 25% could be realized in the number of workstations," according to the firm's report.