GE sets tongues wagging in India

[donsu]

http://www.atimes.com/atimes/South_Asia/FK12Df03.html

General Electric, the US-based multinational that pioneered the India "offshoring" model much before it became a lightning rod issue, has just taken a back seat in its Indian back-office business. In the largest business process outsourcing deal in India yet, GE offloaded its 60% stake in General Electric Capital International Services (GECIS), its global business process operation, Monday to two private investment companies - General Atlantic Partners and Oak Hill Capital Partners - for $500 million. With this, India's largest, one of the oldest, and perhaps the most profitable back-office outfit that operated as a captive unit for GE, has become independent, said GE officials.

As a confused back-office sector in the country struggles to fathom the real reason behind the sell-off of a money-spinner, the question that looms large is, has India started loosing its allure for GE? After all, the offloading of the GECIS stake is not GE's first divestment in the country. Earlier in the year, in a quiet and comparatively insignificant deal, GE sold its stake in Godrej-GE Ltd, a joint venture with a local industrial group (Godrej) that made GE's washing machines. And Monday, a report in India's Economic Times - the newspaper that hinted way back in March that GE was planning to sell out of GECIS - suggested that GE is keen to get out of its Indian electrical motors and lighting businesses as well.

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the rest of the article speculates on the reasons

maybe GE has raped India enough and is moving on to virgin lands