User 157527

India’s Labor Arbitrage Strategy

The key to skilled labor arbitrage is availability of highly skilled and inexpensive labor. You seem to suggest that low skilled inexpensive labor will also do. In the early days of IT growth in NA we had experience with re-trained philosophy major graduates entering field in great numbers to satisfy industry demands. We still have them on unemployment rolls, and a new crop who will be better source then under-educated Indians. We need Math, Engineering and Physics graduates not just "smart" kids to do highly complex IT work. The companies in India, like Sridhar, are just a quick rupee artists feeding off and undermining high reputation the companies like Infosys have build over long time.

The Coming Death of Indian Outsourcing?

Central and South America are coming on line as well. Similar patterns can also be seen in Eastern Europe. Perhaps the terms "outsourcing" and "offshoring" are about to be discarded, but in global economy it becomes not an issue of labor arbitrage, but just an issue of supply and demand?