How long will India hold the cost advantage for IT outsourcing?

as long as there is about 1.2 or more billion Indian people all trying to find employment in a country where there’s high unemployment…im sure the costs will not rise dramatically…

India has a bright future in outsourcing. Most of the companies are running with huge profits like Infosys ( The gaint) Then the TCS ,and Wipro too. These companies are making maximum utilization of the Human Resource that is available for them

Nearly 1 week before I read an article in Business India, a magazine… There was an article which says. In an year, a software company has only an expenditure of 58.9%of the whole net profit in India.

So what you have said is absolutely right.It can nullify. But for India, Its her luck that is its Man power, 1000 million people.60 laks IT seats yet to be filled.An the investors are keenly interested because of low salary rates, fair education system.

///Note: Infosys has selected 100 American brains to work in India.For their firm.It shows the high demand.

S S , In the future yes there is always a chance but the future we are now referring will be 10 to 15 years because that will be the time other low wage countries( China , Taiwane) will eat the indian Share in IT software.

But do you think India will still be just exporting IT software by then, there are so many oppotunities that are brewing man. What about the service sector BPO & now the little giant Knowledge Process Outsourcing. Jus few months back AMD kiked off their chip plant & the Intel they are looking for a production capacity in India.

Not the least the Indian Industry in booming from Steel to Natural Gas exploration to Medicines to banking to bio technology. There are lots of industries that are coming up. Who is going to write the sofwares for them? Yes then the indians will be employed. Then in some years this job will be outsourced to other countires , it means that India has grown to a new level, thats they have raised their bars.

Indian sofware companies are already having their branches in diffrent parts of the world, they are even training Chinese ( the Dragon) so again a new opportunity is been created.

See the future for them doesnt lies in the software , do you know the that India has the largest young people population in the world, it’s a good thing that they are investing in education sector a lot, which even the US feels that they are not doing it effectively. If you invest in education it will lead you to research & that will ripe new technologies. No wonder in future India might dictate terms in software & new technologies. May be….

It is interesting that this question arises while InfoSys is busy getting orders from the US and diverting them to China. Infosys believes that India does NOT have the cost advantage or the resources for IT outsourcing. I believe Infosys is better informed than most of us on this matter.

According to a recent study, India will hold advantage over the US for atleast another 18 yrs in terms of salary advantages and for 30 yrs over UK, the two highly populated English speaking countries!