The Milpitas, Calif., company was building its Web-based financial services business with money from investors who wanted to see expenses kept down without sacrificing quality. CashEdge’s investors include Marsh & McLennan Capital Inc. and the Royal Bank of Canada.

In organizing the new company’s customer service operation, Director Phil Hodsdon learned he could use a subcontractor to hire well-educated, English-speaking Indian workers for $6 an hour.

CashEdge is not alone.

A study released earlier this year by INPUT, an IT market research firm in Washington, D.C., found that most offshore companies providing IT and call-center labor were reporting growth rates of 40 to 80 percent, fueled primarily by U.S. companies.