Friday, January 13, 2006

India’s Outsoucing companies growth slows down

News from Tata Group in india is that they didn’t meet the forcasted earnings the main reasons are
Competition from Vietnam and Philipines as they have less costs.
Vietnamese graduate that speak English and European languages
Indian software developer salaries have doubled in the last five years

This has been expected and move evidence of how the free market is working and moving towards a global village

My view of outsourcing services to other countries is it is good for companies if the outsourcing companies are vetted and your are only outsourcing non essential/competive services of a company.

For countries policies though I cant see outsourcing being a positive especially to competing countries and for non global services. The main argument for oustsourcing overseas is that you are you increasing income of both countries. I disagree I think it has a net negative for the country who is outsourcing the services. My argument is that the majority of the net gain goes to Global companies or people that wont spend enough in the country to compensate the losses.

So in the end I suppose if the country want to take a loss for the good of it neighbours then so be it. I am all for outsourcing to developing countries like the middle east or Fiji!!.

The majority participants of my IT classes at University were from Asian countries and I understand that has been continuing. So you would expect a new generation of english speaking asians trained in the west should be able easily create business relationships with western countries.


Anonymous Outsourcing said...

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4:24 am  

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