A Burgundy and Gold Obsession
'Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.' - Groucho Marx

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  1. #1

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    George Mason

    Default India Outsourcing to America

    http://www.washingtonpost.com/busine...G_story_2.html

    Being in the IT industry I've known and recognized for some time that the trend of outsourcing is dying and things were reversing course. My ideas/opinions of why that was happening did not include rising wages in India, however. I thought it was an interesting read on how things are changing.

    In fact, the reasons I had for the change in trend centered around this part of the article:

    He pays slightly higher wage rates — $15 an hour — to keep the receivables work in the United States. He said he’s heard from executives at other companies that the quality of work in India is slipping as turnover increases and Indian companies invest less in training, especially if a client isn’t willing to pay higher wages over time. Some U.S. companies don’t want sensitive customer data transmitted abroad. Others are tired of poor service, accents and crackling phone lines.
    Which has been a recognized problem for at least 5 years, and what I think really started the reversal of the trend.

    I also find the culture clashes on the last page of the article interesting... As well as the clear contrast of wage trends in both countries.
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  2. #2

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    As a guy who works a lot with Indian resources I can tell you wage trends are huge. When we started our outsourcing work back in 2004, we were getting guys with college degrees in Computer Science and several years of experience for $15K to $18K a year. Guys with the same credentials today are looking for 3 or 4 times that, which, while still much less than we might pay in the US, is making the distance and time offset more of a headache for us.

    Cultural stuff has been huge from the beginning, at least for me. I remember the early specs I sent over for coding. I would get no questions back at all and when the code showed it up it would do exactly what I had spec'd, which sounds like a good thing, right? The problem was that they would code bugs right in, no questions asked, because my ignorance of things left bugs literally in my spec. The coders I was using knew this but their culture left no room for them to question me so they assumed I knew I was asking for bad code and gave it to me.
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  3. #3

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    George Mason

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    Quote Originally Posted by Neophyte View Post
    I would get no questions back at all and when the code showed it up it would do exactly what I had spec'd, which sounds like a good thing, right? The problem was that they would code bugs right in, no questions asked, because my ignorance of things left bugs literally in my spec. The coders I was using knew this but their culture left no room for them to question me so they assumed I knew I was asking for bad code and gave it to me.
    Oh wow, I find that incredibly interesting. I never even considered that angle of the culture clash, I was actually referring more to how lazy and entitled Americans have become and how unwilling so many are to actually work.

    In fact, I always pitched a fit when I was given material that had errors in and told 'it's what the customer wants, do what they said'. I'm talking anything from obvious misspellings in copy for a web site, to awful logic/decision making.

    Some customers like you using your brain to help solve the problem while others were convinced they knew better and were always right. The former are fun and challenging to work with, the later are irritating and wonder why most things they are a part of suck.
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  4. #4

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    Florida Atlantic

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    Quote Originally Posted by tshile View Post
    Oh wow, I find that incredibly interesting. I never even considered that angle of the culture clash, I was actually referring more to how lazy and entitled Americans have become and how unwilling so many are to actually work.

    Side note: my coworker has a HVAC company here in Houston, and told me the other day he can't find people for his company, and he pays very well. $50 an hour for guys with certification, and $75 and hour for guys with the next level cert (can't really remember what he said). And he can't fill those positions! Granted, Houston is different because the job market here is solid, but just goes to show.
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  5. #5

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    Yeah, the cast system makes it very different over there, t. I was there for 2 weeks back in 2004 when we started outsourcing and our contractors over there, to a man, treated me like I walked on water. I spent 2 weeks explaining that we all put our pants on one leg at a time in the morning and that just because I was an SME (and former manager of the engineering team they were replacing) I was not always right.
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  6. #6

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    George Mason

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    And unfortunately I have a feeling that sort of mindset leads to resentment that was never even wanted on your end (or someone like you's end) in the first place.

    I don't have any experience with actual outsourcing in the field, I just know it goes on and (in general) people don't like the problems associated with it.

    Thanks for sharing neo
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