The Coming Death Of Indian Outsourcing

[OhioChick]

02.29.08, 6:00 AM ET

BURLINGAME, CALIF. - India is riding high on outsourcing.

Information technology and IT-enabled services will employ 4 million people in 2008 and account for 7% of gross domestic product and 33% of India's foreign-exchange inflows, according to Nasscom, an Indian IT industry organization.

The death of this industry is far from anyone’s mind.

However, the reality is that wages are rising in India. The cost advantage for offshoring to India used to be at least 1:6. Today, it is at best 1:3. Attrition is scary.

Jobs that are low value-added and easily automatable should and will disappear over the next decade.

People talk a lot about India moving up the value chain. Some of that has indeed happened. An industry that started gaining momentum when Indian software developers were tapped to help fix the "Y2K" problems in old software code has blossomed beautifully into one that offers a much more comprehensive spectrum of services.

http://www.forbes.com/technology/2008/02/29/mitra-india-outsourcing-tech-enter-cx_sm_0229outsource.html

:nopity:

[antigop]

1. They'll move jobs to Brazil. n/t

[OhioChick]

2. Yes....

Or to China, Malaysia, etc.

[The Croquist]

3. You need skilled workers to make a move possible

Maybe Brazil or China can do it or maybe not. Mexico has failed miserably at moving jobs out of the US.

[Warpy]

4. Mexico failed because China opened up.

The Chinese were simply able to do the job far more cheaply than the Mexicans could.

[rosetta627]

5. And the race to the bottom moves on

How low is the bottom?

[yurbud]

6. this was supposed to be the upside of globalization: eventually, wages would

equal out all over the world.

It could work if the system wasn't rigged in corporations favor.

[trthnd4jstc]

7. Funny!

Who is the hand in the puppets bottom? Oh, yes, Karl Rove.

[LongTomH]

8. So that's why McCain has that horrible grimace!

How would you feel if you had Karl Rove's hand up your ass? :rofl:

[yurbud]

11. I would wish I had ass-teeth.

[Skittles]

9. 7.5 hours on a conference call with them

makes me want to hang myself

[Joe Bacon]

10. I'll believe it when Tom Friedman is outsourced.

Only them could I even begin to think that free trade is a wonderful thing!