Outsourcing: What's Top of Mind for 2007?
There's a ton of information packed in this article -- which appears that it was initially printed in Business Week but I can't find the original link -- on outsourcing trends. From tackling the massive turnover in Bangalore to tactics that Infosys is using to proactively combat potential information theft (such as disabling USB drives on computers used by its workers), the piece provides a number of great perspectives on offshoring and outsourcing issues that are top of mind today. For instance, it brings up the comparison between labor in Russia and India. An observation here is that "while programmers are typically 20% more expensive in Moscow than in Bangalore ... there wasn't much difference in the hourly rate for the kind of work that he needed." One expert in the piece is quoted as saying, "Indian companies are cheap until you ask for people with experience." Perhaps this explains why "Russia's high-end software developers are drawing plenty of offshore business to Moscow and St. Petersburg, which together account for about 60% of the country's software development exports. Those exports have grown from $352 million in 2002 to nearly $1 billion in 2005."
- Jason Busch
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