Monday, September 22, 2008


Predictions on how Indian Outsourcing will be affected by recent market gyrations...

It is my humble prediction that Indian outsourcing will grow even faster but folks in India who are starting to become competent will be displaced by freshers...

When American companies lose money, they start to tighten their belts and find ways to accelerate expense reduction where outsourcing to India is one potential solution. The challenge in India though is that as the currency of the US dollar declines, it becomes more difficult to support the salaries of higher-end IT workers in India and they too will also have to practice expense reduction.

If you are in India and have crossed the five year mark and more importantly have transitioned out of being technical to become a form of middle-management, then you can expect your job to be in jeopardy. Indian outsourcing firms will have to leverage the same playbooks as American companies in the 90s by cutting out folks in the middle.

My prediction also states that India will need to eliminate many of those who are really talented and were compensated for their abilities and will need to replace them with freshers who are cheaper and available for half of their salary.

Unlike America which used to have a culture of the employer caring for their employees, India never really adopted this way of thinking and will think of their talent as more expendable. Executives in India will figure out ways to make folks work more, get paid less and ruin any opportunity for work/life balance.

The key is whether folks in India will not repeat the mistakes of American IT workers and seriously consider unionizing...

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