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Choosing the Right Offshore Location
As whispers grow into larger rumbles about the growth of costs and lack of labor stability in the Indian technology labor market, other nations have entered the offshoring fray. No matter how big or small the nation, governments abound have seen the prosperity that the IT industry can bring.
Countries such as Brazil, China, South Africa, Malaysia, Russia, Hungary, Canada and dozens of others have entered the mix. While all offer lower costs than conducting IT work in the United States, each offers specific benefits such as a strong telecommunications, time zone similarities with the United States, a more stable workforce, or specific technology competencies.
Some are lower costs than India and some are higher. However, India continues to be the overall leader in offshored IT work. Given all of these choices in the offshore market and growing costs and labor instability in the Indian market, what factors should you consider in where to feel comfortable in offshoring and, ultimately, where should you offshore to?
The first question that is always asked in this discussion is whether the rumbles about India are true. In my experience, labor rates do continue to grow at about 15-20 percent per year and attrition can hover anywhere between 10-20 percent. But my personal viewpoint is that India is a country of nearly 1 billion people, and it is just on …
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"Time is a great teacher, but unfortunately it kills all its pupils." - Berlioz |