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."

Comments

Abu

[Sho KIlla]

I overheard something interesting right before I hung up the phone with Dell the other day... "Thank you, call again"

Re:Outsourcing is bad

[Marxist Hacker 42]

I maintain a development team in Bangalore.

Then you've got the wrong login name. It should be The Ugly Free Traitor, as you've given up on being American.

If a candidate has been with his or her previous employer for less than a year, they better have a good reason or I'll pass.

And you think "You pay more" is not a good reason, despite the fact that by going to Bangalore you obviously think that profit means more than loyalty? How incredibly hypocritical.

If they've jumped to a couple jobs are more in the last year, forget it. I won't waste my time.

So, to sum it up, you want the cheapest costs you can get (else you wouldn't be bothering with Bangalore in the first place) but if the stupid dot heads actually try to stick up for themselves and jump jobs to get better pay, you'll dump them like a hot potato. Actually, I take it back- you're completely consistent in your own self-interest.