20 February 2008

India is outsourcing outsourcing

I blogged about the impact of appreciating Rupee on Indian Outsourcing firms sometime back. After sinking below 40 rupees, one USD is back to 40. To keep the profit margins, one of the obvious options Indian IT companies have is to move to other cost effective countries. In the last 6 months, they have been really busy.

In May, Tata Consultancy Service, Infosys’s Indian rival, announced a new back office in Guadalajara, Mexico; Tata already has 5,000 workers in Brazil, Chile and Uruguay.

Cognizant Technology Solutions, with most of its operations in India, has now opened back offices in Phoenix and Shanghai.

Wipro, another Indian technology services company, has outsourcing offices in Canada, China, Portugal, Romania and Saudi Arabia, among other locations.

And last month, Wipro said it was opening a software development center in Atlanta that would hire 500 programmers in three years.


I was so sure that I would read this one day, not so soon:

Such is the new outsourcing: A company in the United States pays an Indian vendor 7,000 miles away to supply it with Mexican engineers working 150 miles south of the United States border.

I never expected to read this though:

Ms. Adams graduated last spring from the University of Washington with a business degree, and rejected Google for Infosys.

oh, please!!! any need?