Thursday, January 27, 2005

The end of the Indian IT outsourcing market has been set in motion...

From the The Economic Times:

"A Pune-based company has inked an agreement with the Shenzhen government to train some 1,000 Chinese software project managers in India with a view to transform the booming southern Chinese city into the outsourcing capital of the Communist giant."

Once China becomes globally competitive for IT work by enhancing their project management skills and creating more English-speaking workers, why will anyone look anywhere else for offshore IT services? The price will be unbeatable, and if it's quality-competitive; better than Vietnam, slightly-less than India, they'll lock up the market. India will be like a luxury car - more expensive, slightly better quality - that rich companies will go to when they're worried about the final product. If you want a workhorse, someone to just get the job done (like a Ford Taurus), you'll look to China.


Blogger Stew Magoo said...

The only problem is that the quality coming out of China is terrible. Always has been.

I agree that China poses more of a threat than any other "outsourcing nation" but I wouldn't be terribly surprised to see this track ultimately fail to gain much traction.

12:49 PM  

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