India: Toward High-End Outsourcing

Indian info-tech companies that once specialized in basic work are now providing high-value tasks such as R&D and business transformation services

In recent months articles in The Wall Street Journal and have postulated that outsourcing information technology work to India was losing appeal. They said that high employee turnover in Indian outsourcing companies and rapid growth had reduced work quality and upset Western customers. These same articles argued that salaries in India were rising so quickly that Eastern Europe, British Columbia, and even Oklahoma would soon become competitive with India. I've just spent two weeks in Indian speaking to top executives at some of the largest outsourcing companies and I believe reports of the demise of Indian outsourcing have been greatly exaggerated.

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