Slashdot Mirror
Outsourcing Growing Beyond India
PreacherTom writes "One of the most controversial aspects of the global economy has been the newfound enthusiasm of companies, freed from the constraints of physical location, to outsource jobs. No country had embraced tech outsourcing with more passion than India. Of late, problems are beginning to arise in Indian outsourcing: engineers will start a project, get a few months' experience, and then bolt for greener pastures. The level of attrition can cause the turnover of a project's entire staff within the course of a year. Combine this with salaries in Bangalore that are rising at 12% to 14% per year and it is no surprise that companies are looking beyond India to a slew of emerging hotspots for IT, such as Brazil, China, and Vietnam. Will Ho Chi Minh City be the new Bangalore?" From the article: "India remains an IT outsourcing powerhouse, with $17.7 billion in software and IT services exports in 2005, compared with $3.6 billion for China and $1 billion for Russia... India's outsourcing industry is still growing at a faster pace than that of... other wannabe Bangalores... By the third year of an outsourcing deal, after all the costs have been squeezed out, companies get antsy to find a new locale with an even lower overhead."
Will Ho Chi Minh City be the new Bangalore?
After those workers start demanding higher wages, an alien slave trader will set up a trading post to provide cheap labor and the Men in Black (MiB) will be put out of business after the industry lobbies the government not enforced the alien immigration laws.
No big deal because, as any good PHB knows:
:)
* IT work is, across-the-board, easy and something that can be learned in 21 days.
* IT workers are interchangeable.
* The amount of work that can be done on a project is directly proportional to the number of interchangeable resources devoted to it.
See? No problem!
Sea-Code has a former cruise ship they plan to station off the coast of So. Cal (San Diego) and staff with programmers, etc. The idea is to make the staff closer to US based clients, who wont have to travel days for meetings. Having staff stuck on a ship might also keep them from 'jumping ship'?