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    • Mon Mar 17th 11:05 AM | Rating: 0 0
      Commented on:
      The Coming Death of Indian Outsourcing?
      Seven years of outsourcing experience here, with one of world's largest outsourcing organizations.

      My personal experience:

      1. The quality of deliverables to large organizations from outsourced Indian engineers is lower than quality of onshore deliverables created by US programmers, mostly due to communication issues, infrastructure issues, and extremely high turnover among Indian personnel as they job hop in pursuit of ever-higher wages and a mythically ever-more-creative job. (As ITECO mentioned, most outsourced jobs have such narrowly defined requirements that good programmers hate them)

      2. In an outsourcing deal, the quality and speed of real-time problem investigation and remeditation for critical problems is much, much, much poorer with offshore personnel due to communication issues, infrastructure latency, and lack of experience among Indian programmers.

      3. The incentive to use offshore programmers is strictly due to wage difference, especially for legacy systems which require skills which simply do not exist in India (or elsewhere).

      4. Recession will indeed force CIOs to pinch every penny, which means retaining, instead of rewriting legacy systems. This will not help the offshoring business.

      5. There are plenty of qualified US software engineers available to meet a resurgent demand for onshore programming, but they will be competing with programmers in the Phillippines, and in China, whose wages still significantly undercut Indian wages.

      6. There will be pressure to reduce the onshore executive overhead costs that are associated with outsourcing ontracts....non-contri... senior executives will need to be eliminated to reduce costs.

      So, my assessment is that India loses, China and Phillipines win, although all offshoring generally slows as recession grows, and old systems are retained instead of being rewritten.

      Cheers.
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