Comments on: Is India on the way out? http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/ OOCenter.com -- the only source for offshore outsourcing news, information and your opinions. Thu, 20 Nov 2008 15:52:16 +0000 http://wordpress.org/?v=2.3.3 By: elKore http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/#comment-36831 elKore Mon, 23 Apr 2007 06:14:36 +0000 http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/#comment-36831 The problem is - most companies underestimate the cost of outsourced IT development, thinking that $25/hour versus $100/hr in the US directly translates into a 75% cost reduction overall. Yet, it doesn't work quite that well. Companies overseas may do a great job in converting your detailed specs into real web applications. Yet, when you handle over your requirements to an IT consulting company in the US, you are not expected to provide the detailed specs of your final application. In fact, THEY are expected to do the research analysis of your competitors and give you the plans A, B, and C, which you would discuss with your board and decide which plan you need to go with based on the information that the IT company has provided. The problem with offshoring, is that you don't get any plan A,B and C. In fact, there may be no competive research. No consulting, no suggestion, just a fixed bid proposal within a cookie-cutter model. Yet, as a client, what would you expect from your IT company? At a minimum, a few suggestions, such as: "at a minimum, we can do this for so much $$. Yet, your competitors are starting to do that, and if you want to keep up, its gonna cost $$$. And, if you want to go beyond, its going to be $$$$" Yet, you never get that from an offshore company. So the bottom line is: keep you IT consulting in the US, and IT implementation overseas to cut on costs yet still keep your competitive edge. The problem is - most companies underestimate the cost of outsourced IT development, thinking that $25/hour versus $100/hr in the US directly translates into a 75% cost reduction overall.

Yet, it doesn’t work quite that well. Companies overseas may do a great job in converting your detailed specs into real web applications.

Yet, when you handle over your requirements to an IT consulting company in the US, you are not expected to provide the detailed specs of your final application. In fact, THEY are expected to do the research analysis of your competitors and give you the plans A, B, and C, which you would discuss with your board and decide which plan you need to go with based on the information that the IT company has provided.

The problem with offshoring, is that you don’t get any plan A,B and C. In fact, there may be no competive research. No consulting, no suggestion, just a fixed bid proposal within a cookie-cutter model.

Yet, as a client, what would you expect from your IT company?
At a minimum, a few suggestions, such as: “at a minimum, we can do this for so much $$. Yet, your competitors are starting to do that, and if you want to keep up, its gonna cost $$$. And, if you want to go beyond, its going to be $$$$”

Yet, you never get that from an offshore company.

So the bottom line is: keep you IT consulting in the US, and IT implementation overseas to cut on costs yet still keep your competitive edge.

]]> By: Mark http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/#comment-14537 Mark Thu, 14 Sep 2006 22:36:43 +0000 http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/#comment-14537 While I don't believe that India is "on the way out", I do think that issues are surfacing as smooth execution becomes problematic. With regards to I.T. outsourcing in particular, many CIO's are seeing rates rise, and are wondering if the diminished costs savings are really worth the effort. One company does offer a domestic alternative to offshore outsourcing. You kind find them at: www.ITOnshore.com While I don’t believe that India is “on the way out”, I do think that issues are surfacing as smooth execution becomes problematic. With regards to I.T. outsourcing in particular, many CIO’s are seeing rates rise, and are wondering if the diminished costs savings are really worth the effort.

One company does offer a domestic alternative to offshore outsourcing. You kind find them at: http://www.ITOnshore.com

]]> By: Sanjit Kumar http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/#comment-12105 Sanjit Kumar Wed, 09 Aug 2006 12:44:38 +0000 http://www.oocenter.com/blog/archives/2006/06/19/is-india-on-the-way-out/#comment-12105 There is a saying,what kind of perception you will create when you will see a glass half filled and half empty. Someone will say it is half filled and other will say it is half empty. In corporate world facts and figures plays an important role. There are few examples given by writer on anti-outsourcing trends for India but writer forgot to mention the number of firms coming to India every month for offshore outsourcing needs. The ratio is much more higher. All research reports from leading consultancy institution clearly state that outsourcing trends for India is increasing day by day. When any firm moves out from any country it doesn’t mean or state the capability of country or country specific resources. There are lot of <b>country specific management</b> and country specific <b>man-management</b> issues involved in International Business. I hope enterprise CIO and CEO who are dealing in international market are well aware of these issues. The issues like competitions with countries like Russia and China. India is having no direct threat. There is a misconception that cost is major decision factor for offshore outsourcing but in reality <b>offshore outsourcing is more of a relationship</b>. India is having maximum no of CMMI certified firms and this number is also growing every year. Apart from this India is also having regular supply of highly skilled resources with proficiency in English communication; which is must for IT and BPO offshore outsourcing needs. A statement by writer “Is India on the way out???? clearly reflects that writer tried to see empty part of a glass and ignore the filled portion. Sanjit Kumar AVP-International Business & Key Accounts Infynita Inc. There is a saying,what kind of perception you will create when you will see a glass half filled and half empty. Someone will say it is half filled and other will say it is half empty. In corporate world facts and figures plays an important role. There are few examples given by writer on anti-outsourcing trends for India but writer forgot to mention the number of firms coming to India every month for offshore outsourcing needs. The ratio is much more higher. All research reports from leading consultancy institution clearly state that outsourcing trends for India is increasing day by day.

When any firm moves out from any country it doesn’t mean or state the capability of country or country specific resources. There are lot of country specific management and country specific man-management issues involved in International Business. I hope enterprise CIO and CEO who are dealing in international market are well aware of these issues.

The issues like competitions with countries like Russia and China. India is having no direct threat. There is a misconception that cost is major decision factor for offshore outsourcing but in reality offshore outsourcing is more of a relationship. India is having maximum no of CMMI certified firms and this number is also growing every year. Apart from this India is also having regular supply of highly skilled resources with proficiency in English communication; which is must for IT and BPO offshore outsourcing needs.

A statement by writer “Is India on the way out???? clearly reflects that writer tried to see empty part of a glass and ignore the filled portion.

Sanjit Kumar
AVP-International Business & Key Accounts
Infynita Inc.

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