IT future looks hazy as US cos turn wary of offshoring

[ChromeFoundry]

Source: The Economic Times of India

15 Sep, 2010, 01.08AM IST, Pankaj Mishra,ET Bureau

NEW DELHI: America’s worsening economic climate and incendiary political rhetoric could end up hurting the fortunes of India’s $50-billion outsourcing industry as US firms start avoiding overseas contracts fearing a backlash from skittish politicians.

At least six customers of India’s top three IT companies — Wipro, Infosys and TCS — have postponed decisions on new contracts in the past quarter, triggering concern in Bangalore and Mumbai, the headquarters of the big Indian IT firms.

“What we see from customers is that they are committing short term; they also reserve the right to cancel, so clearly, everybody is playing the short-term game at this point in time,” said S ‘Kris’ Gopalakrishnan, chief executive of India’s second-biggest software exporter, Infosys.

The trend, if it continues, will be a body blow to the outsourcing industry, just recovering from the worst slowdown in its history. Hiring in IT companies has picked up in the past few quarters and so has earnings growth. But another round of weakness, bound to be triggered if American firms pull the plug on new orders, will definitely damage confidence and financial performance, experts said.


Read more: http://economictimes.indiatimes.com/tech/ites/IT-future-looks-hazy-as-US-cos-turn-wary-of-offshoring/articleshow/6555908.cms

[county worker]

1. I have no sympathy for the outsourcing industry.

Well maybe as much as they have for US workers whose jobs were outsourced.

[DavidDvorkin]

2. Meaning, of course, that the Indian IT future looks hazy

In the US, it might be looking better for the same reasons.

[PDJane]

3. India's IT outsourcing is a joke.......

My son tried to hire people to replace his team when his company decided to outsource the entire section. He couldn't find them. He's now working on contract for a subsidiary, doing the work that he would have done in the first place, because they're going to miss the go-live if his group doesn't do the work.

Idiots.

[Skittles]

16. that kind of stuff happens all the time

what I've noticed is that the standards have very much been lowered for offshore workers

a lot of it has to do with the fact that over there, well, they have OPPORTUNITIES - the way we used to - so their turnover is very high

[OhioChick]

4. Time to put unemployed US tech workers back to work.

Nice.....Bank of America, JP Morgan Chase and Citi all use Indian IT.

Weren't most of them TARP recipients? If so, tax dollars should never have gone to hire overseas when there are enough unemployed here to do the job.

[RKP5637]

6. Exactly!!! NO TARP dollars should have gone to hire overseas. n/t

[CurtEastPoint]

5. Is it rude to ask an agent in India or wherever, "Please connect me to someone in the U.S."

I have heard of people doing that. Of course, if there's no one here, you're outta luck, I guess.

[liberal N proud]

8. When our company first outsourced IT, we had to talk to Indian Help Desk

You couldn't email the help desk, you had to call them and they were all in India.

After most of the people in the company complained about the language problem and the terrible service, the company demanded the help desk call center be in the US.

[Skittles]

15. people BEG me not to transfer them overseas

because they know 5 minutes becomes 25 minutes, one hour becomes five hours :mad:

[liberal N proud]

7. Hey - India - sucks doesn't it?

[BootinUp]

9. 50 billion dollars, 50 BILLION dollars, 50 BILLION DOLLARS!

nt

[Turborama]

12. Imagine 50 of these...

(12 pallets full of $100 bills equalling $1Billion)





Or just check this out...

[Ruby the Liberal]

10. Good. Bring the jobs home.

[RamboLiberal]

11. Local Highmark is outsourcing IT offshore

Outrageous. Especially since the get PA residents tax dollars not to mention our premiums. AHoles! Hope it sucks for them. Sending I believe something like 500 jobs.

[Skittles]

13. could be they're realizing how much they SUCK, too

[Poll_Blind]

14. Let's outsource our Economic Depression! n/t

PB