Is this the Inevitable End ??

For over a decade, the Information technology Industry has been accountable for the consumer revolution in India. Accounting to over $40 Billion, the outsourcing industry is responsible for 8 % of the GDP. The Information Technology (Software) Industry employs 1.5 Million professionals and has been accelerating for more than 30 % every year and a steady increase in the cost of talent!

The cost of Talent is now a major issue that the Indian Information Technology Industry is currently facing. The cost of talent and the steady inflation has led to software giants thinking out of the box.

The Times today posted an article stating that Tata Consultancy Services widely know as TCS has now opened a software development centre in Guadalajara, Mexico where they will outsource close to 500 jobs this year and will extend to 5000 over a period of five years.

Mr. Gabriel Rozman, President of TCS, Latin America quoted that

“We see costs rising in India and people becoming less available,” and “That’s why we’re going to places like Latin America, which has professionals and reasonable costs.”

According to The Times, a stronger rupee, rising costs and a lack of talent is causing the move. Tata competitors including Infosys, Satyam and Wipro have already moved some of their operations to mainland China.

Is this a sign of shift focus of exploitation of third world counties? Is this the first sign of IT Slump in India?

Time will tell...

Source: The Times & The Inquirer

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