India's Outsourcing Problems
December 11, 2006 4:31 AM Subscribe
India's Outsourcing Problems One of the most controversial aspects of the global economy has been the newfound freedom of companies from physical location and the subsequent spread of outsourcing jobs. No country had embraced tech outsourcing with the passion of India. Of late, problems there are beginning to rise: engineers start a project, get a few months' experience, and then bolt for greener pastures, bringing a level of attrition that replaces entire staffs within the course of a year. Combine that with salaries in Bangalore that are rising at 12% to 14% per year and it is no surprise that companies are leaving India for a slew of emerging hot spots for IT outsourcing such as the old Soviet Bloc, China, and Vietnam. This comes as companies such as Microsoft continue to laud outsourcing and proudly proclaim that it is here to stay, and it looks as if Ho Chi Minh City will be the next Bangalore.
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