While costs are the major driver for offshoring in India--asoftware developer in the US makes an average of $60,000 per year,while the same job function in India has a salary of $12,000--otherreasons businesses are looking to India include improving abusiness focus, risk diversification and gaining access tointellectual capital. That sentiment was echoed by Arthur Mirante,president, global client development for Cushman & Wakefield."Intellectual capital, world-class talent is the attribute, notcheap labor, that will drive the Indian market."

On the investment side, it's moving from a more fragmentedmarket to an organized one. "A national property cycle is in theearly growth stage," said B Srinivas, national manager, capitalmarkets, Cushman & Wakefield India. "Banks are seeing realestate as an asset class, not just for home loans. We hope to getthe cash registers ringing."He anticipates global retailers such asWalmart will break into the marketplace and that the REIT structureis "being talked about." He also said recent developments such asGE Commercial Finance Real Estate investing in a fund targeted atacquiring and developing up to $500 million in assets over the nextseven years will help move things along.

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