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Tue, May 29, 2007 14:19 EDT
India Being Bangalored By China
Topic: IT Organization Management
Current Rating: |
Indian reporter Venkatesan Vembu published this weekend an excellent article in a daily newspaper called “DNA India” and titled "India Being Bangalored by China.”
Since there is not much written in India about China challenging their leadership in the IT outsourcing industry, I am thankful to Vembu for his well-balanced and documented article.
I am talking every day to CIOs and VPs Engineering located in the Silicon Valley, and many start questioning the overall quality of the work delivered by their Indian outsourcing providers. This does not usually concern the top Indian suppliers but rather the myriad of smaller size companies, which are literally flooding the US market.
India is suffering from the relative anarchy of its outsourcing industry. By many aspects, it is similar to the “dot com” era in California, with some of its unfortunate effects: attrition rate well beyond control, and salaries following the same path, two threats which can potentially disrupt the entire Indian outsourcing industry.
I do not know how India can introduce some regulations or deontology in its outsourcing industry, but something has to be done and the sooner he better.
While China is likely to take overall leadership, it is indeed critical for the entire IT outsourcing industry, including China’s, that India remains a very strong contender.
China, India, offshore, outsourcing, Venus Software
Rating:
We offshored part of our development to India for the past few years. We terminated our supplier last December. we are currently running 2 experiments in parallel: one in China and one in Brazil. Both are doing good so far, and we are really pleased with the communication, something we were missing before
Rating:
I was amused when the article says India has anarchy in outsourcing while praising China. AFAIK the revenues of top 100 Chinese companies dont compare the top 5 Indian companies. And a lot of problem comes when outsourcers get too greedy and go with a totally unknown company and then they blame it on India. If you buy a crappy OS from xyz corp in US instead Microsoft's
Windows or Apple's Macintosh, can I blame the prowess of American s/w companies?
And offshore outsourcing concept is still pretty young and even the biggest Indian operators are in the business only for the last decade. So, if you go for smaller companies there will be hiccups and thus it becomes more prudent to choose a trusted player, even with a higher premium. And Indian outsourcers occupy every band of outsourcing spectrum - from worse to best, so instead of squarely blaming India, companies should learn to blame particular companies and see how they can work it through with other companies.
Hi Remi. Venkatesan Vembu did two follow up articles on the same topic in the same newspaper just one week later. You may find them interesting.
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