Sunday, May 25, 2008

How long labor intensive offshoring?
There was a time years back when one of the major advantages for offshoring was the cost differential. This was ofcourse derived from the salary differential. Time has changed the scenario a lot and as more projects getting outsourced to different countries, the supply-demand magic on the resource side started playing its tricks, gradually levelling the salary differential.
This has set a new predictable limits in the outsourcing patterns. High end projects, which are more of knowledge process outsourcing in nature, are in great demand even with higher fees and higher end salaries. On the lower side of the limit exits the non-technical or less technical, volume driven services like Call center activities, Data entry etc.
Which has essentially vanished are the mid-stream activities. With economic downturn in countries like USA this new character of offshore outsourcing is possibly getting more pronounced.

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