Businessweek.com posted an article by Rachael King about how outsourcing is extending beyond India. Apparently some developers working in India are becoming frustrated with the ability to get things done there.
It seems to me that the whole outsourcing debate is simply the latest fad in the global economy. The first companies to take advantage of the costs associated with an operation in India were able to take advantage of those costs. As more and more companies enter into India, the number of workers available to do the work is going down and now the workforce is moving from job to job to better their positions and income. These factors are now raising the cost of doing business in India. Makes sense to me.
One need only look to Japan of 20 years ago for a similar trend. I can remember in the 70’s and 80’s when everyone said that Japan was going to be the only economy left. The pundits predicted that all of the jobs in the United States would leave for Japan because the cost of doing business was so much less there. Well now we see that the economy is moving beyond Japan to China. Some of the work previously done in Japan is coming back to the United States! (Toyota Motors now assembles cars in the United States) The same thing is going to happen to India.
As time goes on many of the companies that tried India are now moving some of their business operations back to the United States. It seems that some things do not work so well in India!! (Ever talked to an account representative in India?? — Seems that they are always named Bob to John??!!) In short, the customers have complained and the companies have heard the voice. They are now moving back to the US where the complaints and the overall cost of doing business will be less when one factors in the cost of lost business to the bottom line. Similarly they are now looking for the next big outsourcing location. Perhaps Nepal??!
Simply put — this stuff is all cyclical. Wait 5 years and the jobs that are going to India will be back here.
