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Jun15
Is India really becoming too expensive for Outsourcing?
Apple's recent decision to close its Bangalore center abruptly has come as a shock to many people. The Bangalore center was operating with 1,500 workers and this number was supposed to increase to 3,000 (its full capacity) gradually. The closure came only after 3 months of operation. What is interesting is that Apple did not give any explanation about this decision and even no one could guess it a month ago. Some serious soul searching has started in India among IT industry leaders. Apple's leaving India is perhaps the first serious setback for Indian IT industry. Of course, it will not make any serious damage to the industry for the time but IT industry leaders of India should take this matter seriously.
 
The main fear is that because of Apple's exit, India may be perceived in the west as an expensive outsourcing destination. This will create a negative impact on the future of outsourcing industry of India. Actually, it is not important whether India has become an expensive place or not. Rather, the image of India being an 'expensive' or 'inexpensive' destination is more important. I would suggest Indian government and NASSCOM to come out with a campaign to portray the strong features of India.
 
Do you agree with me?
 
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4 Comments/Trackbacks




It's 'soul searching', not 'sole searching'.

It is always expensive to run a business that thrives on quality.
Only the ignoramus amongnst the media continue to gloat about low cost and high quality talent.

What a pointless write up, what was the connection between Apple leaving India and India being an expensive outsoursing option. What were you out to prove, and what did you prove? What problem did you aproach and what did you solve? NOTHING

Yes India is becoming Expensive for IT outsourcing. When the offshoring bang began average salaries were around 20k/month and now they are almost at 120k/month. If the prices continue to rise it won't make much sense to outsource.

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