India Sourcing

[Loggie]

Talking to people recently about the trend to outsource IT work to India. I was surprised to hear that India is becoming too expensive! Think they mentioned that Sri Lanka is the next India.

Amazing how these trends change as costs increase in each country. Wil Africa be on the radar soon????

[TopLink]

Loggie. I have certainly heard similar comments. Not sure that Africa is on anyone's radar at the moment though.

[Loggie]

Just wondering where in the World the big manufacturing and IT companies will go to next?

[Scotty]

There seems to be a belief emerging now, that India will overtake China in becoming the economic powerhouse and in time will over take the US as the World's Superpower.

I guess India in terms of the political framework might encourage entrepreneurship and foreign investment?

[Silver Shark]

India? Will take a few years I think.

[Shadow]

I honestly cannot see India over taking China in becoing the next great econimc Super power. China has the population and resources that make it a huge market.

[ChinaLilyZhu]

Originally Posted by Loggie

Talking to people recently about the trend to outsource IT work to India. I was surprised to hear that India is becoming too expensive! Think they mentioned that Sri Lanka is the next India.

Amazing how these trends change as costs increase in each country. Wil Africa be on the radar soon????

Yes. This is true through my experiences outsourcing some photogrammetry job to India. People are wondering whether this would lose India to China. However, those service type of outsourcing like software, or BPO, would take Chinese a few years to catch up as an average. The company feels the communication gap with Chinese, that's why they continue to do business with Indian. But I know it's happening.

Chinese are charging more reasonably than Indian do, that's how normally I feel in global sourcing projects.

[vijayr3]

BPOs in India are not moving any further from here, finding hard to find qualified talent, with swanky English accent and ability to work odd night shifts. As many Indian companies are offering day jobs in data processing and similar kind, they go easy one. Many have realized that this BPO is not a career, and just a temporary nature. Many projects have gone back to home country facing poor quality specially with UK customers. If this continues, huge BPO facilities created will be left un-utilized. Current financial crisis have paused recruitment and all are down sizing mode. Costs have gone up in the last 2 years, it has just started coming down a bit, but to what extent is yet to be watched. Now Obama has mentioned that he would bring all the jobs back to US to give back to his own country's youth. Philippines, Malaysia, Vietnam may be next hotspots for BPOs. Sri Lanka is under big crisis with LTTE problems and so any immediate investment is a big question.