The Great Indian Outsourcing movement will be over within two years.
That’s what an architect turned blogger who writes anonymously from Bangalore is predicting. The author is writing from the movement’s Ground Zero, so he may have better insight than the rest of us. But I’ve got good anecdotal evidence from a local outsourcing company that lends weight to his prediction.
I live and work in Charleston, S.C., an area known more for its beautiful beaches and gorgeous live oak trees than high technology (though we do have Robert X. Cringley). But Charleston’s location can attract businesses that don’t necessarily need high technology, just smart people. Outsourcing is one of those types of businesses.
I know personally a project manager at a local outsourcing company. Our daughters go to school together. We were talking at a recent birthday party about outsourcing, cost, and the availability of talent. Business is booming, but it has little to do with cost, she tells me. She says its the lack of local talent that drives most of their business. They deal largely with the marketing end of technology, making websites and fancy Flash applications. Madison Avenue marketing firms would rather hire local Flash experts, she says, but they’ve hired them all. They’d prefer the rapid turnaround that local talent can give them. There just aren’t enough talented people in NYC to fill the huge demand, so they outsource to Charleston, S.C. In turn, this local company sends the work to a development center they own in Costa Rica. Costa Rica is, I’m surprised to learn, a hot up-and-coming technology spot. And you don’t have to wait 12 hours for Costa Rican project managers and developers to reply to email or voice mail.
The Tired Architect – our Bangalorian blogger – talks about the availability of talent in Eastern Europe and China, and there’s obviously talent in Central America. Brazil is another up-and-coming technology hot spot.
I agree with The Tired Architect that India’s monopoly on the outsourcing market is over.