Outsourcing to India losing charm

[OhioChick]

Posted Tuesday , March 20, 2007 at 11:07
Updated Tuesday , March 20, 2007 at 11:17

New Delhi: India as a ‘plum outsourcing destination’ is losing its brand value thanks to deteriorating quality, substandard work, and increasing costs. According to a latest survey by global management consulting firm A T Kearney—the total compensation costs for office services employees in India, China, the Philippines, and other offshore hot-spots increased as much as 40 per cent in 2006.


Labour cost advantage associated with offshoring information technology services to countries like India, China and the Philippines, is declining says the survey.


At the same time, key emerging markets continue to improve their attractiveness in terms of access to talent, industry experience, quality certifications and their regulatory of environment.


"What is most striking about the results of this year's Global Services Location Index is how the relative cost advantage of the leading offshore destinations declined almost universally, while their scores for people skills and business environment rose significantly," Paul Laudicina, managing officer and chairman of the Washington based consulting firm was quoted by PTI.

http://www.ibnlive.com/news/outsourcing-jobs-to-india-loses-charm/36458-7.html

[wakeme2008]

1. In India software ppl jump from job to job with increases with each job

and there is a major shortage of ppl... :shrug:

[aquart]

2. Oh. Really?

Ain't that awful.

[Rene]

3. I've had friends of mine who were fired/laided off/early retired.....lost their excellent tech jobs

to outsourcing........then they've been hired to short term contracts to FIX the India pgmrs crappy cobol coding. They write awful code over there....and project specs have to be very, very specific or the company pays thru the nose for modifications.

These programmer friends of mine can't find full time jobs in Connecticut. The work here is either outsourced or the insurance offices are FULL of visa people.

One sad case was a super programmer - friend of mine who was finishing one of those small contracts. He said as he went down to security to turn in his badge.....the room was FULL of visa people from India getting their pictures, badges.
The India-owned recruiting firms around here will NOT interview Americans for any outstanding jobs.

This guy was in his late 50's....with a young son. he and wife divorced...lost his home...spent savings. He wound up doing handyman work.

[bighughdiehl]

4. poor babies

cry me a river.....screwing over your own citizens has limits on returns? Say it isn't so!

[Daveparts]

5. He is a poor baby

He did his job an played by the rules and got screwed in the process.
If the governments role is not to protect it's people what the hell do we need them for? That would be the domestic tranquility clause.
" Nicoli I think they are going to shoot us!"

[bighughdiehl]

6. I meant....

sarcastically that the COMPANIES are poor babies-for finding out outsourcing has its own limitations.