Sunday, July 15, 2007

Indian IT companies looking for low cost destinations

by Vipin Agnihotri

Few years back, IT companies in United States and Europe viewed India as a ‘low cost’ destination in terms of technology, services and manpower. But things have changed, now it’s the turn of Indian IT companies to start looking at low-cost destinations such as Malaysia and Philippines to cope with the pressure of increased salaries. Top-notch Indian IT companies such as Infosys, TCS, Wipro and Satyam are looking out for low-cost destinations.

Point to be noted here is that as salary levels are increasing in India and with appreciation of rupee expected to play a prominent role, Indian IT companies are left with no other option than to look for low-cost destinations. It has come into the notice that Infosys is planning to start a development centre in Manila over the next two to three quarters with 150-250 employees.

As a matter of fact the boom in the IT and IT Enabled Services industry attributed to the huge outsourcing of businesses from foreign lands that begin some 10 years ago in India seems to be reaching a fag end. There is no doubt in my mind that that the outsourcing bubble may burst up anytime soon. It is worthwhile pointing that the cost benefit that India has had for so many years, is losing impetus as the Indian economy is scaling up to new heights with Indian currency showing sign of strength.

 

 

 

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