Wednesday, February 01, 2006

Outsource to Out of Source

Why is India the best choice for outsourcing? Because we are English speaking, we deliver quality work and most of all, we are cost effective.

Countless companies mainly from North America chose to outsource all their IT and ITES (IT Enabled Services) jobs to India to save valuable bucks. There were large scale job cuts in that continent as they were all moved to cheaper locations in India. This made both the players happy since the giver got the job done for peanuts and the taker was able to do a lot with those peanuts. However, things are now beginning to look different and soon we’d be moving form being a victor to a victim of the same thing.

Over the time, many IT companies in India began increasing the pay package of their engineers and the greed to get more money made well paid engineers feel they are underpaid. This led to higher demands, high attrition and greater efforts by organization to hold on to the resources. Even people who worked all day collecting status in Excel sheets began demanding annual compensation in 7 digits. And in no time these peanuts grew to become watermelons, defeating the cause of this whole outsourcing exercise. The Source of work and money that felt the bite of this expense has began searching for alternate destinations like China and other East Asian countries.

Is this Shining India just a lamp that’s going to go off? Did we count our chickens before knowing whether the eggs will hatch or become omelets?

Just when countries like China are emphasizing more on learning English, if things go the same way, we will soon move from the “Destination to Outsource” to a “Destination Out of source”.

Also read: SAP finds Indian techies too costly

1 comment:

Sundar said...

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