Version: 2008

Comments on: Will India price itself out of offshore market?

Growing demand from the United States for offshore services in India is raising the cost of labor there, causing U.S. firms to begin eyeing China, Romania and other options. But India has some tricks up its sleeve.

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by March 30, 2004 1:35 PM PST
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Calm down, Steve
by furl12 March 30, 2004 2:53 PM PST
The US is stopping outsourcing to India. Now it's outsourcing to China! (Gartner's latest prediction: One fourth of IT jobs in US will have migrated to Asia by 2010.)

Be careful of what you ask for.
When is someone going to report on outsourcing to Manila, Philippines
by April 2, 2004 8:47 AM PST
Everbody is so concered about India right now, that I've not heard any mention of the Philippines. Dell pulled some of its Tech Support out of India due to the language issues. We'll is appears there is less of a language with the Philippines. I'll like to know if this will be the next wave when India doesn't work out.
Reply to this comment
When is someone going to report on outsourcing to Manila, Philippines
by April 2, 2004 8:47 AM PST
Everbody is so concered about India right now, that I've not heard any mention of the Philippines. Dell pulled some of its Tech Support out of India due to the language issues. We'll is appears there is less of a language with the Philippines. I'll like to know if this will be the next wave when India doesn't work out.
Reply to this comment
Economics
by bjbrock April 3, 2004 8:28 AM PST
Like it or not, everything in this world is governed by the laws of economics. This is a prime example. Of course, the economic models we have developed which have been proven, or at least not disproved, to be pretty much the rules in reality and not just ethereal ideas. The one fact that cannot be denied, however, is the world and it's inhabitants are not perfect and thus the economic models, based on a perfect environment, must be modified to parallel the real world. These modification are made by us less than perfect people and some are opened to question. But the consensus of most is that the adaptations are the best thing we know how to do to bring the performance of reality into line with what our models show us can be achieved through the natural market forces. The biggest and most important principle of the model which fails in the real world to meet the requiremnts of a "perfect economic environment" is "perfect knowledge". Our models are based on the idea that the consumer and the producer both have a complete knowledge of the economics and conditions that exist within an economy. We all know this is unattainable and thus we have depended on our laws to balance the situation which is unbalanced due to our propensity toward imperfection. Mumbo jumbo? Only to the uneducated and blind.

Back to perfect knowledge. The closer we can come to the asumptions of our economic models, the less intervention is required and the natural market forces are able to run their course to the benefit of all. So how, then do we get closer to our idea of perfect in regards to economics? By striving to make the honest and complete facts available to the participants (which is everyone). So vendors must be forthright with consumers and the press which is this worlds biggest source of information, has got to strive to present uncolored and complete information so the processes can run their course without intervention.

It is so obvious to me that we have not moved toward this idea, but rather have colored the facts in an attempt to manipulate natural market forces to benefit the greedy and power mongers. This has made it impossible for the market to run the natural course and the results are so evident in the news that for one to deny this is unbelievable. While vendors have motivation, albeit improper, to color their info, the press does not. But the IT press today is failing to go to the lenghts neccessary to find the real facts and present incomplete and/or colorred information based on what the vendors and those strivivg for control and wealth have spewed. They do not responsibly find the true facts by doing their "homework" and I suspect because it is easier to just repeat what rhetoric they have been fed instead of doing their job to find the truth.

Our world economy can work to the good of all. But the press and info providers cannot do the irresponsible job they have been doing and expect it to succeed. Big responsibility. But if they can't live up to it, they need to find another line of work where they have no resposibility.
Reply to this comment
Economics
by bjbrock April 3, 2004 8:28 AM PST
Like it or not, everything in this world is governed by the laws of economics. This is a prime example. Of course, the economic models we have developed which have been proven, or at least not disproved, to be pretty much the rules in reality and not just ethereal ideas. The one fact that cannot be denied, however, is the world and it's inhabitants are not perfect and thus the economic models, based on a perfect environment, must be modified to parallel the real world. These modification are made by us less than perfect people and some are opened to question. But the consensus of most is that the adaptations are the best thing we know how to do to bring the performance of reality into line with what our models show us can be achieved through the natural market forces. The biggest and most important principle of the model which fails in the real world to meet the requiremnts of a "perfect economic environment" is "perfect knowledge". Our models are based on the idea that the consumer and the producer both have a complete knowledge of the economics and conditions that exist within an economy. We all know this is unattainable and thus we have depended on our laws to balance the situation which is unbalanced due to our propensity toward imperfection. Mumbo jumbo? Only to the uneducated and blind.

Back to perfect knowledge. The closer we can come to the asumptions of our economic models, the less intervention is required and the natural market forces are able to run their course to the benefit of all. So how, then do we get closer to our idea of perfect in regards to economics? By striving to make the honest and complete facts available to the participants (which is everyone). So vendors must be forthright with consumers and the press which is this worlds biggest source of information, has got to strive to present uncolored and complete information so the processes can run their course without intervention.

It is so obvious to me that we have not moved toward this idea, but rather have colored the facts in an attempt to manipulate natural market forces to benefit the greedy and power mongers. This has made it impossible for the market to run the natural course and the results are so evident in the news that for one to deny this is unbelievable. While vendors have motivation, albeit improper, to color their info, the press does not. But the IT press today is failing to go to the lenghts neccessary to find the real facts and present incomplete and/or colorred information based on what the vendors and those strivivg for control and wealth have spewed. They do not responsibly find the true facts by doing their "homework" and I suspect because it is easier to just repeat what rhetoric they have been fed instead of doing their job to find the truth.

Our world economy can work to the good of all. But the press and info providers cannot do the irresponsible job they have been doing and expect it to succeed. Big responsibility. But if they can't live up to it, they need to find another line of work where they have no resposibility.
Reply to this comment
Facts: Reason to Accept Change
by April 21, 2004 2:43 AM PDT
Thanks for initiating the debate.

Observations: There's a fear lurking about borrowing knowledge (I beg to differ with the term "outsourcing", and would politely request abstinence of use of such) from knowledge capital of world, India. It's understood and empthised, but firmly responded to with the challenge: even if costs were made competitive - Indian talent would necessarily have to be relied upon to deliver the goods.

It's not only technology. Take science, management, arts and all the walks of life that matter. India stands tall, way ahead of contemporary folks. We are up there, lone but clear of competition. I understand that there was a myth that costs were the reason for borrowing knowledge from India. It's clearly proven today, when costs are steadily rising, and have become competitive; still India can't still be outpaced. If there was a means to beat competition decreasing bottomlines is one of the ways, not the only. Enhancing quality and increasing value is. And, India realises this.

India being a vendor is history. Roles have been reveresed. No longer is India a captive seller. Others have become captive buyers. It's tough to accpet this change. And why should it not be? Every change has a character of being received with resistance.

It's not far when less knowledge-intensive work will be outsourced by India to other countries. Trust this - it's already started happening, and it's not doing bad!

Cheers
Reply to this comment
Facts: Reason to Accept Change
by April 21, 2004 2:43 AM PDT
Thanks for initiating the debate.

Observations: There's a fear lurking about borrowing knowledge (I beg to differ with the term "outsourcing", and would politely request abstinence of use of such) from knowledge capital of world, India. It's understood and empthised, but firmly responded to with the challenge: even if costs were made competitive - Indian talent would necessarily have to be relied upon to deliver the goods.

It's not only technology. Take science, management, arts and all the walks of life that matter. India stands tall, way ahead of contemporary folks. We are up there, lone but clear of competition. I understand that there was a myth that costs were the reason for borrowing knowledge from India. It's clearly proven today, when costs are steadily rising, and have become competitive; still India can't still be outpaced. If there was a means to beat competition decreasing bottomlines is one of the ways, not the only. Enhancing quality and increasing value is. And, India realises this.

India being a vendor is history. Roles have been reveresed. No longer is India a captive seller. Others have become captive buyers. It's tough to accpet this change. And why should it not be? Every change has a character of being received with resistance.

It's not far when less knowledge-intensive work will be outsourced by India to other countries. Trust this - it's already started happening, and it's not doing bad!

Cheers
Reply to this comment
by sclemment March 10, 2009 10:47 PM PDT
It disturbs me to discover that US Companies are paying higher-than-US wages to India. For example, BigLaw is paying $60 to $100 for legal work done in India. Meanwhile, the Lawyers in India make less than $10,000 per year, so the firms in India are making the profits, many of them just "off-shore" mini versions of the US firm. That same $60 to $100 would make a very nice salary for a lawyer in the United States, and there are plenty of lawyers that would work for $20- $40 per hour in the USA. It's not just about "outsourcing" it's about tax-evasion, and also, not paying soc security medicare for the employees.
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