Indian outsourcing too expensive

NUMBER CRUNCHERS at Gartner are predicting doom and gloom for the Indian outsourcing biz.

The Big G says that India’s wage bill for developers is sky rocketing and its share of the outsourcing market could fall by as much as 45 percent by 2007.

Gartner says that the ancient land is having to face stiff competition from cheaper, or closer countries such as the Philippines, Malaysia, Vietnam and Eastern Europe and they will not cut the mustard.

The main reason is that India’s wage bill is getting too high, with call centre staff now demanding between $159-$204 a month when before they only wanted $114-$136.

At the same time the country’s infrastructure is not keeping pace with the rapid growth of the industry.