A couple of months back Microsoft India released the Indic Input tool for transliteration. The tool has been received well, so much so that at most Microsoft India events, the tool is talked about. Indic Input allows you to type in English and converts that into the Indian language you have selected. Recently I came across something similar for Middle East. The tool is called Microsoft Maren and works the same as the Indic Input tool.
What Maren has done better than Indic Input is, have a neat logo and nice video explaining what Maren is.
(direct link)