Why? Because Indians are now too expensive, so the Tier 1 company has every incentive to get the work done (and I use that term loosely:-) some place cheaper and pocket the difference.
If you know and accept that the Indian outsourcer is going to decide who will work on your project, why would you object to an additional tier of contracting? Programmers are interchangeable parts, y'know.:)
A recent Dilbert had The Company outsourcing a call center to itself through multiple tiers of subcontractors. I bet this really happened somewhere, like a lot of S.A.'s strip ideas.
It may be 7% off a total IT budget, but let's look at claimed vs. actuals.
Indian IT Sector : 50% savings vs. onshore
UT Claim : 20% savings vs. onshore.
These are claims used to peddle a company's products or stock, so we can assume that they're overly optimistic. Add to this the fact that most outsourced projects fail or require rework, and we can guess that no savings are actually being accheived. But there are savings in this quarter, which is the only one that counts right now, sadly.
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Why? Because Indians are now too expensive, so the Tier 1 company has every incentive to get the work done (and I use that term loosely :-) some place cheaper and pocket the difference.
:)
If you know and accept that the Indian outsourcer is going to decide who will work on your project, why would you object to an additional tier of contracting? Programmers are interchangeable parts, y'know.
A recent Dilbert had The Company outsourcing a call center to itself through multiple tiers of subcontractors. I bet this really happened somewhere, like a lot of S.A.'s strip ideas.
It may be 7% off a total IT budget, but let's look at claimed vs. actuals. Indian IT Sector : 50% savings vs. onshore UT Claim : 20% savings vs. onshore. These are claims used to peddle a company's products or stock, so we can assume that they're overly optimistic. Add to this the fact that most outsourced projects fail or require rework, and we can guess that no savings are actually being accheived. But there are savings in this quarter, which is the only one that counts right now, sadly.