the outsourcing backlash underway?
Filed in archive Global Economy by tj on April 29, 2004
entrepreneurs in the US that had some outsourced business processes down in the Indian jungle and decided to shift work back."That was true even though programmers in India cost Bladelogic $3,500 a month versus a monthly cost of $10,000 for programmers in the United States. "The cost savings in India were three to one," Ittycheria said . "But the difference in productivity was six to one."If you like the topic you might enjoy having a look at our sister weblog.
"Bladelogic's chief technology officer, Vijay Manwani, born and educated in India, predicts that once the "hype cycle" about Indian outsourcing runs its course, projects will come back to the United States "when people find that their productivity goals have not been met."
"The upshot is that high-technology corporations are likely to ship more and more business functions to India to take advantage of its well-trained work force. However, even as they do so they will keep many essential tasks here. "
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