Comments on: The Death of Outsourcing http://hathology.com/the-death-of-outsourcing/ Tue, 31 Aug 2010 23:33:27 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Floyd Buenavente http://hathology.com/the-death-of-outsourcing/comment-page-1/#comment-2182 Floyd Buenavente Fri, 14 Mar 2008 07:35:07 +0000 http://hathology.com/the-death-of-outsourcing/#comment-2182 I think it is more of a financial move for the company to outsource. I think it is more of a financial move for the company to outsource.

]]> By: sam http://hathology.com/the-death-of-outsourcing/comment-page-1/#comment-1940 sam Wed, 05 Mar 2008 22:03:31 +0000 http://hathology.com/the-death-of-outsourcing/#comment-1940 Couple of points here: 1. One Billion population does not translate into 1 billion workers.What percentage of 1 billion is employable in IT? As a mid level manager at one of the largest IT providers, I am struggling with quality of resources and the ability to procure them. 2.From an employee standpoint, why should an offshore resource work with an Indian IT vendor when she has better options such as Accenture and other MNC firms with better work life balance/compensation? 3.With MNCs ramping in India up the cost of labor will continue to increase eating into profitability of Indian vendors. 4.Indian IT companies are risk averse when it comes to making value added acquisitions, ( exception here is Wipro which has made some bold moves) 5.Moving up the value chain will continue to be a pipe dream if Indian companies try to build scale/value organically. 6.Rupee appreciation and wage appreciation can kill margins. Remember the Ireland story,Ireland was one of the pioneers in offshore call center services !!! 7.What would help India eventualy is the demographics. The developed world is greying. If you need English speaking programmers at a reasonable cost India is the option. Others countries simply do not have the scale. At some point due to the labor shortage in US and rest of the world the Indian IT vendors would be able to charge more for services. Actually this is already happening making Indian vendors more complacent. THE REALITY IS THAT INDIAN IT VENDORS STILL CONTINUE TO BE BIG BODY SHOPPERS PLAYING WITH DEMAND AND SUPPLY OF RESOURCES,UNLIKE WHAT THE BUSINESS "PRESS" IN INDIA AND NASSCOM WOULD LIKE US TO BELIEVE. Couple of points here:

1. One Billion population does not translate into 1 billion workers.What percentage of 1 billion is employable in IT?

As a mid level manager at one of the largest IT providers, I am struggling with quality of resources and the ability to procure them.
2.From an employee standpoint, why should an offshore resource work with an Indian IT vendor when she has better options such as Accenture and other MNC firms with better work life balance/compensation?

3.With MNCs ramping in India up the cost of labor will continue to increase eating into profitability of Indian vendors.

4.Indian IT companies are risk averse when it comes to making value added acquisitions, ( exception here is Wipro which has made some bold moves)

5.Moving up the value chain will continue to be a pipe dream if Indian companies try to build scale/value organically.

6.Rupee appreciation and wage appreciation can kill margins. Remember the Ireland story,Ireland was one of the pioneers in offshore call center services !!!

7.What would help India eventualy is the demographics. The developed world is greying. If you need English speaking programmers at a reasonable cost India is the option. Others countries simply do not have the scale. At some point due to the labor shortage in US and rest of the world the Indian IT vendors would be able to charge more for services. Actually this is already happening making Indian vendors more complacent.

THE REALITY IS THAT INDIAN IT VENDORS STILL CONTINUE TO BE BIG BODY SHOPPERS PLAYING WITH DEMAND AND SUPPLY OF RESOURCES,UNLIKE WHAT THE BUSINESS “PRESS” IN INDIA AND NASSCOM WOULD LIKE US TO BELIEVE.

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