Posted on 08/20/2008 9:46:49 PM PDT by TigerLikesRooster
For India's Tech Titans, Growth Is Waning
By NIRAJ SHETH
August 20, 2008; Page A1
NEW DELHI -- India's information-technology industry, the engine of the nation's economic resurgence, is losing steam.
A decade ago, a host of Indian companies -- led by Infosys Technologies Ltd., Wipro Ltd. and Tata Consultancy Services Ltd. -- shot to global prominence by helping fix the "millennium bug" that threatened to crash many of the world's computers at the end of 1999. Often growing at 40% a year or more since, they quickly helped build a global tech-outsourcing industry that has changed how the world does business and how it views India.
Now that growth is slowing sharply. The credit crunch and spending slowdown in the U.S. are hurting the companies' biggest market, while a cheaper dollar shrinks their profits. Longer-term problems are surfacing. Competition is rising from other low-cost nations, ranging from Eastern Europe to the Philippines and Vietnam. And India's own success has raised labor expenses, cutting into the companies' low-cost advantage just as their revenue growth is slowing.
(Excerpt) Read more at online.wsj.com ...
Ping!
My Indian friends tell me that wages for comparable experience in IT has pretty much equalized between India and the U.S.
Yeah, ok, only 70% of the comparably paid IT personnel have been receiving pink slips recently. I love it, “I make exactly what Americans in IT make...when I’m working”.
Does this mean that the next time I call Dell tech support I will finally be calling someone in this country.
The last time I called Dell I wound up with some Indian guy (and I love Indians)who had not a clue as to what my problem was. I was then shunted of to a Dell techie in Tenn and after listening to his 15 minute diatribe about how clueless Indian tech support was finally fixed my problem
The airline industry is not exactly a "high-growth" opportunity right now.
The team you absolutely do NOT want to be a part of in my company is the one responsible for QA and bug fixes for the software coming out of our Bangalore office. Overtime, overtime, overtime. And no extra pay, of course.
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