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The end of Indian outsourcing

Forbes
reports today that India’s competitive advantage for offshore services
is disappearing fast as wage demands mean that services are now 66%
cheaper for US and European firms in India, compared with 84% a few
years ago. 

As wage demands increase, it can only be a matter
of time they say, where it will cost the same.  In fact, they forecast
this could be as soon as 2015 based upon current trends. 

The
issue India then has is that Forbes reckons India doesn’t have any
people who think, create or differentiate because all the thinking is
done by their customers.  India has ‘outsourced’ the thinking and just
do the implementing.

Is this the likely future …

… or is this just a US-magazine trying to forecast the end of India’s
competitive advantage because Americans don’t like hearing about
India’s success? 

About Chris M Skinner

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here…

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