Is Indian Outsourcing Industry Losing Out To Other Sources?

Someone posted an interesting question on LinkedIn, that I have also seen being asked in other places, whether India was not the top outsourcing destination and why?

From discussions I have had with various people, and my own observations, I think that, yes, India's value as an outsourced services provider has increased in volume but is now less of a cost advantage to client companies. Quality has suffered, and many American companies in particular have pulled back from Indian operations.

While it will take some time for India to fall off its perch as the main focus of IT and even other professional services outsourcing, IT is beginning to show some changes.

Several factors are at play. In the past Pakistan, etc. could not really come close to what Indian companies could offer in a scalable manner. Such countries are getting better, though India still has far more momentum.

A major problem, besides India's poor infrastructure, is the fact that GOOD Indian engineers can now command salaries not a small but a significant fraction of salaries for similar positions in the USA.

Additionally, the quality of resources being churned out, almost mass-produced, by the professional/educational system there is not at par with what Indians have previously built a great reputation on. So some clients are starting to see significant declines in quality and significant increases in the amount of hand-holding or reiterations needed to get things right.

That still does not mean it is a slam dunk for Pakistan, Bangla Desh, etc. to steal India's thunder. India still offers far greater stability than, say, Pakistan can - so a US businessman is not going to worry too much about being beheaded during a trip to India.

So, yes, India is vulnerable to good competition on cost with good quality work. But, it is not on the way out.

Certainly many Pakistani and other countries' companies are leveraging that. But, I do not see Pakistan's built-in tendency to self-destruct any great opportunity going away anytime soon. Having been born in Pakistan, I have been an entrepreneur in Pakistan in the 80s. I know how tough it was then - even before suicide bombings became a problem. Now, suicide bombings targeting Pakistanis are a DAILY occurrence. I can only imagine how difficult it would be for a Pakistani company to convince Americans or any foreign clients to visit and freely move about the country.

I surely respect those that are trying to do it in the even worse situation of law and order they face. Their job is not going to be easy to even catch up to India, much less get ahead. But, time, effort and rising Indian costs can give them a better foot in the door than ever in the past.

In the meantime, Indians being far more strategic and better business-minded thinkers, are doing a great job not just moving up the "food chain" in services they provide, but are also leveraging global capital markets to turn the tables and buy American and European companies.

I do not see Pakistan's biggest business, industry and media tycoons thinking or being far sighted beyond the lengths of their own noses.

What do you think?

"Didn't Bin Laden work for the CIA?" . "Well,...."

Someone asked recently, "Didn't Bin Laden work for the CIA? Didn't they train him and give him loads of money?"

Well, I do not think Bin Laden was technically a direct recruit of the CIA or an employee.

I understand he went to Afghanistan on his own to fight the Russians, for their invasion of a Muslim land. US said he is a good man for feeling that way.

The CIA and the US Govt. were busy actually promoting the word JIHAD in Muslim countries like Pakistan so uneducated masses could be exhorted to volunteer to go into battle against Russians, many times knowing they would be suicide missions. So, Bin Laden was a Godsend to the CIA and they worked well together. Training and resources were surely provided to him.

Of course, now we are paying the price. We said he was a hero when he wanted outside armies out of Muslim lands like Afghanistan. When he said OK, now American armies out of Saudi Arabia (his actual home country)Blair and Bush started talking as if this is some ideology from 1000 years ago. Now, last time I checked 1979 was not 1000 yers ago when the US Govt. and CIA created the JIHADI soldier.

The Russians are probably laughing at us every day we get mad dogs we trained biting at us around the world now.

Imran

Post date: Aug 4, 2005

Imran Anwar condemns suicide bombers, demands their excommunication

Newswire: (New York - February 28, 2005) Respected and popular media personality and community leader IMRAN ANWAR, regularly a guest on Fox News Channel and CNN, issued an urgent statement on the latest suicide bombing reported in the news today.

In his media statement, Mr. Imran Anwar:

*CONDEMNS SUICIDE BOMBER AS HELL-BOUND EVIL-DOER WHO SHOULD BE EXCOMMUNICATED FROM ISLAM
- Calls it as it is, helps wake up silent Muslims who are looking the other way
- Helps prevent other illiterate idiots from signing on as bombers if they know they will go to hell

*CALLS ON MUSLIM LEADERS AND ESPECIALLY CLERICS AND IMAMS TO DECLARE THAT SUCH BOMBERS WILL GO TO HELL, AND NOT TO ANY PARADISE
- It is the DUTY of Muslim clerics to save Islam from these heretic murderers and to prevent future bombings
- Islam requires people to stop, prevent and speak against evil when they see it

*AKS WHY US GOVT. HAS NO DIRECT OUTREACH TO MUSLIMS THAT TERRORISTS ARE ENEMIES OF MUSLIMS EVERYWHERE
- No effort to speak directly to the Muslims of the world using plain facts, terrorists are killing more Muslims than Americans
- Bombings are killing innocent civilians, not soldiers
- Can bring Muslim majority on board to help eradicate insurgency

Opinions? Ideas?