Nogo In India
Statesman – Software provider Pervasive is moving back to Austin after a failed attempt to outsource a majority of its developers – this article nails whats wrong with India’s potential for future outsourcing –
“We have found that the complexity of managing such an operation and the increasing costs of labor, employee turnover, training and facilities in a hot market such as Bangalore make it challenging to realize those savings,” he said.
“…delivering savings is often far more difficult than small companies imagine,” said Robert Kennedy, professor of business administration at the University of Michigan.
“Moving offshore involves a trade-off. Typically you save a lot on labor and you incur additional costs related to administration and other issues,” Kennedy said. “For big corporations, the economics still work. But for midsized ones, it’s easy to overestimate how much you’re going to save.”
-Shlok
Sign up for my newsletter.