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Indian reporter Venkatesan Vembu published this weekend an excellent article in a daily newspaper called “DNA India” and titled “India Being Bangalored By China.”
Since there is not much written in India about China challenging their leadership in the IT outsourcing industry, I am thankful to Vembu for his well-balanced and documented article.
I am talking every day to CIOs and VPs Engineering located in the Silicon Valley, and many start questioning the overall quality of the work delivered by their Indian outsourcing providers. This does not usually concern the top Indian suppliers but rather the myriad of smaller size companies, which are literally flooding the US market.
India is suffering from the relative anarchy of its outsourcing industry. By many aspects, it is similar to the “dot com” era in California, with some of its unfortunate effects: attrition rate well beyond control, and salaries following the same path, two threats which can potentially disrupt the entire Indian outsourcing industry.
I do not know how India can introduce some regulations or deontology in its outsourcing industry, but something has to be done and the sooner the better.
While China is likely to take overall leadership of this industry, it is indeed critical for the entire IT outsourcing industry, including China’s, that India remains a very strong contender.
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