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    • Fri Mar 7th 21:18 PM | Rating: 0 0
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      The Coming Death of Indian Outsourcing?
      Economic events and entities are ultimately cyclical and natural. It's not oversimplifying to use the cliché, 'What goes up must come down'.

      Indian IT outsourcing is having its day in the sun. I think this cycle will likely peak in the next 2-3 years. It will retract, regroup, reposition and recover.

      The current upward cycle began in the late ‘90’s with the mythical Y2K crisis. US business leaders heavily exaggerated the risk. The US Federal Govt. allowed in @ 1.5 million mostly Indian programmers and drove down US IT wages. Once Indian software firms established themselves in the US, outsourcing back to India simple and logical.

      1 or 2 of you addressed the time and management issues that add to the cost of doing business half way around the world.

      The cultural tendency of programming like robots from specifications so detailed that the code has virtually been written leaves little room for creativity and innovation.

      At the back end, software designers and systems analysts in the US have to correct code when requirements change or when the code is of poor quality due mostly to miscommunication.

      I can tell you first hand there is no 'quality' advantage gained by US business using Indian engineers. It was always about price and that margin is shrinking.

      Someone used the term 'Bestsource' . I think that's exactly what is starting to happen. Strange no one mentioned the Philippines which has the second largest English speaking population in the non-western world.

      India's current IT boom will bust but they're not going away. They will adapt, improve and continue to be a major force in Engineering and Information Technology for all of our lifetimes.

      In the near future, they will experience growing pains and maturation just like everything else in nature.
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