Mon, 29 Mar 2004

Will India price itself out of offshore market?

So, we hire an Indian company who then in turn "offshores" to China. And the benefit to America is??? Cheaper X-box games and fewer jobs. Wonderful.

"Tata Consultancy Services, one of India's four largest exporters of software, has begun to offshore its staff," the American Electronics Association says in a new report. "By 2005, TCS plans to have 3,000 software engineers in China, or 15 percent of their global work force."

Growing demand from the United States for offshore services in India is raising the cost of labor there, causing U.S. firms to begin eyeing China, Romania and other options. But India has some tricks up its sleeve.

(link) [CNET News.com]

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