Offshoring: It Ain’t As Cheap As It Used to Be

The craze to tap well educated, highly skilled, and cheap technical resources in India over the course of this decade may just be making those resources much less cheap than they used to be. So much so in fact that Computer World reports that American firms are starting to scale back their offshoring operations in Bangalore and other Indian high tech centers.

Next stop: China and Southeast Asia.

While low level tech skills will continue to be widely available and relatively cheap as compared to hiring American workers, it’s the highly skilled and experienced workers who can take on projects with minimal oversight and management who will command salaries comparable to colleagues in the west.

So hopefully this current trend will not stifle India’s booming tech sector and will help to spread the technology job love throughout Asia.

And with the US dollar so weak these days, I wouldn’t be surprised if we start seeing a host of stories about countries outsourcing to American tech firms.

⊆ July 18th, 2007 by Eric Berlin | ˜
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