|
...view all
When a company thinks about outsourcing their IT processes, the first destination they think of is India. Indian companies were the first to begin selling outsourcing services to US and European firms and had the additional advantage of being extremely cheap in comparison to US and European labor rates. There were major disadvantages: lack of R&D skills, the need to manage the development process step by step and spoken English that was extremely difficult for US and European managers and customers to understand were among the chief ones. The main advantage was simply that development and operational costs in India were very cheap. The disadvantages were dealt with through US and European managerial experience, sophisticated methodologies, and business models.
However, in the last few years the situation has changed. The original disadvantages have disappeared with time and experience, only to be replaced with new challenges. The increase in demand has dramatically narrowed the available pool of educated and skilled manpower, leading to a dramatic increase in labor costs. Five or six years ago, a C++ programmer could be hired for $5 US per hour; the same developer’s cost now can be $22per hour. Rising labor expenses are pushing up service costs to comparable US levels and are becoming uncompetitive in comparison to other outsourcing destinations.
Media Contact
(407) 708-5617
...view all
|
|
|