India Beginning to Outsource

Will India price itself out of offshore market? | CNET News.com – Tata Consultancy Services, one of India’s four largest exporters of software, has begun to offshore its staff, the American Electronics Association says in a new report. By 2005, TCS plans to have 3,000 software engineers in China, or 15 percent of their global work force. China’s universities, like those in India, award more bachelor’s degrees in engineering than their counterparts in the United States. Yet China’s wage growth rate for technology jobs was about half as much as India’s, according to the Hewitt study. U.S. pay rose 3.3 percent to 3.5 percent, the lowest increases ever recorded for American technology positions in the annual survey.

Interesting to hear about large Indian firms already beginning to outsource FROM India. Seems the big trend here is actually the growth of global conglomerates and mobile factors of production.