|
|
|
 
 
 
 
|
|
|
|
|
||
|
| ||||
| ||||
| ||||
| ||||
| ||||
|
|
|
India’s outsourcing in a downward spiral – Wipro confesses
Though Wipro share process went up yesterday almost 8 percent, there was a silent but very significant confession by the company that signifies start of a major downward spiral in India’s highly publicized outsourcing industry especially the IT cheap labor sector.
Wipro, the Bangalore-based information technology group, said yesterday that flat to low technology budgets in leading markets for offshore services had forced it to mine existing customers more aggressively in the year to March, when it lifted net income to Rs15.83bn ($362m), up 58 per cent year on year.
Sources close to the IT outsourcing markets say, the downward spiral IT body shopping has started. The American and European companies have finally realizes the waste of money they incur when the inefficient departments and managers outsource IT services which end up in further inefficiencies any way.
Tata Consultancy Services, India's largest Indian IT Company, fell nearly 9 per cent after unexpected accounting adjustments. Infosys, the second biggest IT exporter, also fell heavily last week after weak guidance.
The Indian IT companies understand that their days of taking advantage of low cost cheap labor from Indian youth is over. They are now pressured on one side deflation from Western countries when it comes to revenues. They also face inflation in terms of higher wage demand by India’s vibrant intelligent young generations waking up against exploitation by Indian Software oligarchs.
These Indian software companies who have failed to produce a single world class software products have caused major problems for the Western economies through their quick money schemes by exploiting India’s cheap youth work force, naïve Western needs and inefficiencies and India’s artificially controlled low currencies. Now these companies face the down ward spiral of deflation and stagflation themselves.
OUTSOURCING ARTICLES
|
|
| Click here to get ad specs and place your ad or Click here to contact the advertisement department |
Send Letters to the Editor
|
Add RSS headlines