Is Outsourcing Dying Or Thriving? (Part 2)
March 15, 2010
It has now been two years since Sramana Mitra’s article “The Death of Indian Outsourcing” was published. Is outsourcing dying – or thriving?
In one sense, outsourcing in India as it was known in the past is on the verge of (and in some cases is already) “hitting the wall.” Pure labor arbitrage-based outsourcing is dependent upon wage rate differentials. While the global economic downturn may have slowed the rate of wage inflation in India, it will return as soon as the world economies return to “normal” – and likely with a vengeance.
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