IT Outsourcing and other "social" countries
IT Outsourcing and other “social” countries

It was not a long time ago when Australia was complaining about the Indian outsourcing. Their reasons were not only based on economic subjects but also on social arguments. Above all Australia claimed that Indian companies were stealing IT jobs from other countries. But it’s not about stealing, it’s about to be better, faster, and to be cheaper.

However, for a certain time ago Australia itself started an IT Outsourcing strategy because they discovered their labor cost were less than in Europe.

It is really amazing to see how countries can change its mind after discovering the advantage of IT Outsourcing. The expression unsocial or social had always an ambiguous and not clear meaning. This applies in particular for the economy.

But what does it mean when Australia now begins an IT Outsourcing strategy? Compared to India their labor costs are still to high. Hence, it follows Australian outsourcing will only get the companies which Indian Outsourcing companies didn’t want to consult it or they will get those companies with special relationship to Australia.

However, Australia can’t complain anymore about unsocial methods because they themselves are driving this way now. The only chance for Australia to get more leads than Indian outsourcing companies is to convince with quality. And this is the second big problem of the Australian software economy. There are no doubts about the quality, scalability and reliability about Indian software. It’s about to be better, faster, and cheaper.

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A new market for Offshore Outsourcing??


According to a report by Forrester Research more than one million jobs in Europe will move offshore by 2015. The report mentions that as European firms - especially in the UK - ramp up their spending with offshore service providers in countries like India, they will increasingly displace substantial numbers of employees from their current roles. Following the UK will be Germany, France, the Netherlands and Italy. Countries such as Ireland, Greece and Portugal face far lower employment impacts from the trend since companies in these countries show a far lower tendency to adopt offshore outsourcing as a budget option. Also, in many respects such countries act as low-cost IT and service locations in their own right. he trend to migrate jobs to lower-cost locations such as India and Russia will be motivated by a number of factors, says Parker. First, there is a strong emerging skills base in low-wage countries. Russia, for example, has 40% more scientists per head than the UK, France or Germany. Offshoring is much cheaper. The annual salary of a systems architect in the UK currently stands at about ˆ130,000 per annum, while a comparable systems architect in India commands just ˆ40,000.



Reference: http://www.infoconomy.com/pages/news-and-gossip/group98312.adp