This post originated from an RSS feed registered with Agile Buzz
by James Robertson.
Original Post: Imagine that - issues in outsourcing
Feed Title: Cincom Smalltalk Blog - Smalltalk with Rants
Feed URL: http://www.cincomsmalltalk.com/rssBlog/rssBlogView.xml
Feed Description: James Robertson comments on Cincom Smalltalk, the Smalltalk development community, and IT trends and issues in general.
The Register reports that there are emerging issues with outsourcing in India:
India's business process outsourcing market is expanding rapidly, but cracks are beginning to show. Concern is growing over a tightening supply of skilled IT workers, and a high rate of attrition among workers in the sector, particularly in offshore call centers.
So - demand for these jobs is up - which tightens supply, makes people move between jobs more quickly - and raises costs. Not a terribly big surprise - Silicon Valley watched that progression in a big way during the late 90's, and it's simply repeating itself in India. Watch for costs to rise enough that over the next few years - given the inherent overhead of outsourcing - savings will pretty much evaporate in India. That will drive the business elsewhere, but:
English language skills aren't as prevalent elsewhere as they are in India
The problems brought up in this article are going to repeat no matter where the outsourcing goes
Basically, the savings associated with outsourcing are going to be a pretty short lived phenomenon.
Previous Topic
