Thursday, April 22, 2004

Will India price itself out of offshore market?

Part of the subplot of Wednesday's episode of West Wing included the export of technology jobs to India. This is probably a story that they should have done several years ago. I have had several opportunities in the last couple months [see 12/21/2003 and 3/6/2004] to deal with help desks outsourced to India and have been less than impressed.

Within Sutter Health, I have been fairly vocal about my negative experiences with India help desks. As a result, people are always forwarding me articles about India outsourcing. One of the Regional CIOs forwarded a link to Will India price itself out of offshore market? The article notes that:

  • The U.S. technology industry's demand for offshore services is apparently beginning to drive up pay rates in India, raising questions about the long-term benefits of outsourcing work to that country.

  • Indeed, even some Indian companies have begun offshoring their own work to China.

  • The article points out that salaries in India have grown at a double digit rate in the last year. In contrast, the mid-points and salary ranges for our technology jobs have not changed for three straight years.

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