``...outsourcing can have indirect be­nefits. Take Ittiam Systems. A crew of ­former Texas Instruments (TI) employees—led by Srini Rajam, the former ­managing director of TI India and now ­Ittiam’s CEO—founded the startup in 2001 to make better and cheaper digital signal-processing systems. The company secured $11.5 million in venture capital financing and by 2004 was earning profits of $1 million annually. Rajam, who worked for the giant Indian outsourcing firm Wipro Technologies before joining TI’s India division, sees himself and his company as a child of the outsourcing phenomenon. “Outsourcing will help innovation,” says Rajam. “It gives people confidence and experience”—not to mention the high salaries that free them to take risks on new ventures.``

http://www.technologyreview.com/articles/05/02/issue/brief_outsource.asp