India''s revenue from back-office outsourcing is expected to increase nearly five-fold to $50 billion by 2012 despite a potential economy recession in the United States market, an industry report released said yesterday.

The report however noted that skill shortages, creaky infrastructure in smaller towns and cities and rapidly rising wages are major challenges.

According to a study conducted by IT industry group Nasscom and consulting firm Everest, the sector has increased at 35% annual growth over the last five years to hit annual revenue of about $11 billion.

The study said while the United States would continue to be the largest BPO opportunity for India up to 2012, there were significant untapped opportunities in Britain, Europe and Asia Pacific.

Boeing Joint Venture

Boeing Co has entered into an agreement with the Indian Institute of Science and software firms Wipro Technologies and HCL Technologies to develop wireless technologies and other network technologies.

The venture, Aerospace Network Research Consortium, is for a period of four years and can be extended based on """"mutual interests"""", according to a joint statement released by the firms on Tuesday.

Boeing last year signed a 10-year manufacturing deal with India''s state-run Hindustan Aeronautics Ltd worth more than $1 billion. Boeing has said it sees business worth $80 billion in India''s commercial sector and $15 billion in the defense segment in the next 10 to 15 years.

7:00AM New York, 7:00PM Hong Kong – Hong stocks edged higher on the expectations of a rate cut in the U.S. China Oilfield and China Life earnings surge in 2007.

Asian stocks rallied on the back of higher closing in New York led by a rally in Tokyo and Hong Kong.

In Tokyo Nikkei 225 Index closed higher 390.95 or 2.99% to 13,478.86, in Hong Kong Hang Seng index increased 238.19 or 0.99% closed to 24,291.80, in Australia ASX 200 index lower 143.80 or 2.45% to close 5,716.50.

In South Korea Kospi Index increased 10.72 or 0.66% to close at 1,637.91, in Thailand SET index closed higher 10.51 or 1.41% to 754.87, and Indonesia JSE Index edged increased 25.79 or 1.00% to 2,607.84. Sensex index in India decreased 60.80 or 0.33% to 18,091.94.

Hong Kong stocks closed higher ahead of the U.S. rate cut expectations. Hang Seng Index increased 238.20 or 1% to 24,291.80 and China Enterprises Index added 0.5% to 13,379.18.

Properties, banks, and China related stocks advanced in Hong Kong.

Sun Hung Kai, added 4% or HK$6 to HK$159.70 and Cheung Kong Ltd increased 2.1% or HK$2.60 to HK$127.65.
According to National Development and Reform Commission in Beijing coal prices increased in December and may rise further in January on heavy snowstorms in the northern regions. Thermal coal prices in December rose 6% to as high as Rmb530 per ton according to NDRC website.

Shang Hua Holdings Ltd surged 154% or HK$1.17 after Beijing Enterprises agreed to acquire 74.78% of the company at HK$98.8 million. The stock purchase is at a 47% discount to the closing price of HK$0.76 on January 28. The computer and related parts trading will shift its business to water treatment.

Beijing Enterprises rose 2% to 55 cents or HK$32.84 after the news.

The China Oilfield Services preliminary revenue for the year ended 31 December 2007 is estimated to increase by around 40% over the previous year, while the net profit is estimated to increase by around 95% as compared with the previous year.

China Oilfield net profit in 2006 was Rmb 128 billion and earnings per share Rmb0.2823.

China Life Insurance projected 2007 earnings increase of 50% from 2006 earnings of Rmb 14.384 billion and earnings per share growth was not estimated. Earnings per share in 2006 were Rmb 0.51.