Indian employees at a call centre provide service support to international customers, in the southern city of Bangalore March 17, 2004. The hiring frenzy at call centres in India is the flip side of daily tales pouring out of the US and Britain, where thousands of software and back-office jobs are being cut as companies take advantage of cheap communications offshore to drive down costs. India is the undisputed leader of emerging markets to which developed economies are outsourcing high-technology jobs, IT consultancy firm Gartner said in a report released on Wednesday. The $3.6 billion industry in India is seen rocketing to 13.8 billion by 2007 with the number of jobs quadrupling to 1 million. Picture taken March 17, 2004. REUTERS/Sherwin Crasto  SC/

Indian employees at a call centre provide service support to international customers, in the southern city of Bangalore March 17, 2004. The hiring frenzy at call centres in India is the flip side of daily tales pouring out of the US and Britain, ... where thousands of software and back-office jobs are being cut as companies take advantage of cheap communications offshore to drive down costs. India is the undisputed leader of emerging markets to which developed economies are outsourcing high-technology jobs, IT consultancy firm Gartner said in a report released on Wednesday. The $3.6 billion industry in India is seen rocketing to 13.8 billion by 2007 with the number of jobs quadrupling to 1 million. Picture taken March 17, 2004. REUTERS/Sherwin Crasto SC/ (Reuters)

U.S. Service Sector Growth Slows in October

Politics Reuters

The pace of growth in the U.S. services sector slowed modestly in October as new orders slipped, though employment improved, an industry report showed on Monday.

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The Institute for Supply Management said its services index eased to 54.2 last month from 55.1 in September, shy of economists' forecasts for 54.5, according to a Reuters survey.

A reading above 50 indicates expansion in the sector.

The forward-looking new orders gauge fell to 54.8 from 57.7, but the measure of employment gained to 54.9 from 51.1.

The vast services sector has fared better than its manufacturing counterpart, which contracted during the summer. Still, this was the first time since June that the rate of growth in services firms has cooled.