Mergers and acquisitions of foreign web hosting companies and application service providers is on rise with many interesting implications"

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(PRWEB) May 23, 2004 --With money starting to flow back into the Internet space, the new owners of data centers in the U.S. (post Internet re-organization) are acquiring foreign web hosting companies and ASPs/software companies. The owners are filling up their data centers with the servers they acquire in foreign acquisition. In addition, this trend is not only creating new IT jobs in the US, but also many of the acquired IT workers abroad are retained.

It should be noted that not only do the retained embedded foreign IT workers come at 1/3 the wage cost, but they are also the engine for future sales growth in the new market. They are also being used for handling excess work flow in the U.S.

The tremendous amount of economies of scale plus the acquisition of talented embedded IT workers in target foreign markets is what the owners of the hundreds of U.S. data centers are taking advantage of.