“India is Beginning to Get Expensive”

11 Responses to ““India is Beginning to Get Expensive””

1. mayur
   January 30th, 2006 at 23:48

   i dont think thats the case…its expensive but quiet cheap compared
   to UD.

   
   
2. Branedy (23 comments.)
   January 31st, 2006 at 05:18

   I predicted this six months ago. I have a contact in India, and the IT outsourcers are sucking every available person out of other sectors like education and engineering fields. The ensuing competition is causing a lot of churn in the business, and driving the salaries up.

   
   
3. Kiltak (1 comments.)
   January 31st, 2006 at 10:26

   This is getting to be ridiculous. Instead of having indian people with awful english accent and fake names offer us terrible support, we’ll get the same kind of service in China.. Are the chinese people better at speaking english? Probably :)

   Kiltak
   [Geeks Are Sexy] Tech. News

   
   
4. Branedy (23 comments.)
   January 31st, 2006 at 10:43

   Actually according to my Indian friend, the Indians are confidant that the Chinese are worse at English. And hence they are not afraid of the Chinese taking business. They do believe that the Chinese are good programmers, they just don’t make good engrish speakers.

   Look for more outsourcing to Far Eastern European countries, right up untill they become EU countries.

   
   
5. Dian S (2 comments.)
   February 3rd, 2006 at 19:07

   Actually, if I’m reading the blog item correctly, it’s not a matter of SAP pulling out of India, so much as expanding into new geographies. That’s what a lot of smart companies are doing. neoIT calls it portfolio management. My guess is, the particular areas of expertise that SAP requires for its R&D work will send it constantly seeking out new pockets of talent. You can’t *always* spend your way out of that dilemma. My guess is, the SAP work that’s gone to places like Sofia was done as a skunkworks effort — to keep it under wraps, out of the way of day-to-day distractions. I do wonder what the wage differential is between Bulgaria and the tier-1 cities of India in the area of software product development.

   – Di
   http://www.sourcingmag.com

   
   
6. Dian S (2 comments.)
   February 3rd, 2006 at 19:13

   Oh, and regarding the English skills, it varies from person to person. The higher the level of job, the better the skills better be. But since SAP is a *German* company, how important is English to its culture? Anybody know? Shouldn’t we be haranguing about how well the people in various outsourcing destinations speak German? ;-)

   
   
7. munish
   April 25th, 2006 at 09:31

   Yes ,india is very expensive.may be same as in the US.In the cities you can find number of people heavily taking prescription drugs.dont do any exersice.Resulting in heavy healthcare costs.prescription drugs,which is the number one cause of bankrupcy in The US.

   China is better because they have very cheap complimentary healthcare system.

   Regarding english,i dont think indians can speak very good english,only a few can speak,but they are people pleasers and are very unhealthy.

   
   
8. Harish Satti (1 comments.)
   April 27th, 2006 at 04:10

   I have two points to make here.

   1. Why India has been growing as an outsourcing country: Outsourcing in India begun with simple body-shopping and time and material projects, wherein clients never shared business processes with the development teams. Over a period of time Indian software companies (body shopping units) swell in size and profits. Slowly with the knwoledge transfer many venture captilist and some NRIs started investing in software firms. This gave them visibility and business knowledge. Over a period of fifteen years Indian software companies have gained expertise on technologies and business processes. Indian economy has experienced major boom in last 10 years and new age business have grown in the country. This led to superior infrastructure and talent creation. Therefore it is not only ENGLISH knowledge. I agree that there is a gap but that remains when you do business with any other country like Japan, China, Germany, France etc. One thing I can ensure that the gap is least with Indian companies. China is will take time to climb the learning curve (due to extream lack of English speaking people) that India has surpassed ten years back.

   02. India in a value added partner role: With growth of outsourcing, organizations have starting offering specialized services to various verticals and IT companies have consolidated their offering along with these specializations. This gives another advantage to clients as they can now expect customized solutions. There are companies who are known for their expertise like Infosys for banking solutions, TCS for enterprise solutions, Brainvisa for eLearning and content development services and Wipro for technology solutions.

   I do not think that India is getting costlier if you compare what they are capable of offereing in given cost.

   Harish Ch. Satti

   
   
9. munish
   April 30th, 2006 at 06:20

   if an indian says that they are not expensive.it is like asking maruti car company ,whether their car is better or santro is better.if china can do the same work at half the price , every one will go there.

   india simply cant compete with china.with the corrupt companies like reddy laboratory,ranbaxy eating up our economy by selling expensive chemicals,which they make out of thin air.

   
   
10. Hemant Kapani (1 comments.)
    May 15th, 2007 at 16:28

    Well, understanding that the cost {per capita income}has increased after the Boom of the Outsourcing Industry in Various Domains be it direct Sales,Telesales, Back end Processing, Data Management, Acqusitions,Banking,Motor Vichecheles sale purchase,Human Resources & Training Implementations ( Just a few to mention)it is obvious that their would be a possible burst in cost be it the salary or the structure.
    For a simple reason that India would be more expensive than any other asian country is because of it’s High end Quality Servies, The Profitibility ration against cost cutting analysis.
    There might be possibility that 2008, all big project’s might turn points to countries like China & Phillipines but the bottom line is you cannot get the same High Standards & the Satisfory work from them or the Businees Improvement plans would not work the same as it does for India Specifically.

    Regards,
    Hemant kapani(Programme Manager)

    
    
11. Manish
    June 6th, 2007 at 06:00

    Hi,

    Oursourcing started with cost saving, and possibily all companies who established there base in India saved on it also but with time there was a lot of knowledge base which got developed in India and eventually with this knowledge and the learning curve Indians had it moved from cost to quality. If we see the current scenario India is the only option which provides the right balance between quality and pricing, at the same time it is much ahead its compitition.

    With this knowledge and learning acquired by the india as a society the kind of work indian are catering to has also moved up the value tower. if I take a simple example for Hewlett Packard when they started there’s services division in India they were troubleshooting only home pc’s but now they have moved up with the knowledge they saw and developed to supporting there higher server, data centers which are critical or backbone of any organisation in the world. Surely there are few countries which are good but they dont have the “right number” of talent available.

    I strongly beleive India is going thru a strong transition phase from low level work to high level work and in no way losing on oppurtunites of outsourcing work from around the world; infact they have started outsourcing work to other SAARC countries suc sri lanka.

    Finally i would make only one point “its not about money anymore its about how much more you can get with the resources india has”

    Manish