Home Viewpoints Finance India"s Outsourcing - Is the end near? Thursday, 20 November 2008
             
India"s Outsourcing - Is the end near? PDF Print E-mail
Thursday, 24 April 2008 08:31
As we had predicted earlier in our article. (China vs. India). Forbes recently published an article about wage inflation in India. Salaries rose 15.1% in 2007, up from 14.4% the previous year. The 2008 forecast: 15.2%. This would be the fifth consecutive year of salary growth above 10% and the appreciation of the rupee against the weakening dollar (11.5% in 2007).

I am not sure how the outsourcing market will survive this. Assuming a 15% year-to-year salary hike rate, and a 2007 cost advantage of 1:3 in favor of India, if U.S. wages remain constant, India’s cost advantage disappears by 2015 or sooner.

article by forbes: click here
- Simon Beckel
Subscribe to Private Equity Watch by Email

Visit my Blog...

Comments
Discuss Viewpoint
Title: (optional)
[b] [i] [u] [url] [quote] [code] [img] 
 
Receive update notifications?

3.23 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."
 

MBAA Poll

Via the Interest Rate, what can the Federal Reserve Affect?
 

Quotes

Obviously everyone wants to be successful, but I want to be looked back on as being very innovative, very trusted and ethical and ultimately making a big difference in the world. - Sergey Brin

Visit Sponsors

Your are currently browsing this site with Internet Explorer 6 (IE6).

Your current web browser must be updated to version 7 of Internet Explorer (IE7) to take advantage of all of template's capabilities.

Why should I upgrade to Internet Explorer 7? Microsoft has redesigned Internet Explorer from the ground up, with better security, new capabilities, and a whole new interface. Many changes resulted from the feedback of millions of users who tested prerelease versions of the new browser. The most compelling reason to upgrade is the improved security. The Internet of today is not the Internet of five years ago. There are dangers that simply didn't exist back in 2001, when Internet Explorer 6 was released to the world. Internet Explorer 7 makes surfing the web fundamentally safer by offering greater protection against viruses, spyware, and other online risks.

Get free downloads for Internet Explorer 7, including recommended updates as they become available. To download Internet Explorer 7 in the language of your choice, please visit the Internet Explorer 7 worldwide page.