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03/02/2008: "Indian outsourcing no longer economically viable"

[W]ages are rising in India. The cost advantage for offshoring to India used to be at least 1:6. Today, it is at best 1:3.

India's tech industry is a "services" industry. The Indians don’t do the thinking. The customers do. India executes. As a result, India has not learned to invent technology products of its own.

As the 1:3 cost structure becomes 1:1.5, it will soon become inefficient to use Indian labor. Why not Oklahoma or British Columbia? For many Europeans, Eastern Europe has already become more compelling than India.

[ Multiculturalism didn't work here either. Oh sorry, I meant Globalism, because that's what we call it in mixed company. India got used for cheap labor, but then as industrialization took over and first world lifestyles became common, that cheap labor was nowhere to be found. So now India gets overlooked for the next hot new unexploited resource. ]

http://www.forbes.com/home/enterprisetech/2008/02/29/mitra-india-outsourcing-tech-enter-cx_sm_0229outsource.html