Is the Party Over for Indian Outsourcing

I mentioned this a few weeks ago. Here’s more on the topic from Business Week.

Basically, the aren’t as many people available to fill the outsourcing demand, the rupee is rising against the dollar, wages are rising, and there’s more competition for existing talent. Visas to the US are running short too.

A confluence of adversities is at play. They include an appreciating rupee that is cutting into earnings, a severe shortage of qualified talent at home, and a cap on H-1B worker visas to the U.S., along with pre-2008 election protectionism threats.

At first, their multinational competitors such as IBM Global Services, Accenture, and Electronic Data Systems were taken by surprise [by outsourcing]. But then they joined in the new game, setting up shop in India and leapfrogging by making local acquisitions, hiring aggressively, and offering similar services to their clients. As of June, the three multinationals alone have 100,000 professionals on their rolls in India. That’s about a third of the top three Indian players, and the multinationals only began hiring three years ago.

read it all!