Picture of the earth
Globalisation is rapidly changing the shape of the IT world

The IT world stage takes another turn

Outsourcing venues favoured by Western IT companies are themselves adopting an offshoring strategy

Written by Bryan Glick

There are few things that frustrate the leading Indian IT software and services companies more than being described as Indian. The likes of TCS, Wipro and Infosys want to be seen as international suppliers, not be defined by their country of origin. After all, how often is IBM described as a US technology company?

The desire to be a global force is understandable and realistic – but equally, the Indian (sorry) firms are being affected by their growing international nature.

Advertisement

Last week, one of the world’s largest private equity groups, Apax Partners, was reported in The Times to be talking to Patni, one of the longest-established providers from the subcontinent. And TCS announced plans to outsource 5,000 jobs to Mexico. Yes, that’s right – an Indian outsourcer offshoring its staff. TCS blames wage inflation at home and the rupee’s surge against the dollar; Mexico offers a low-cost environment for supplying the firm’s US customers.

Offshore providers in Eastern Europe, the Far East and South Africa are becoming increasingly viable options for Western firms as they develop greater expertise and skills.

Of course, many of the development centres in these emerging economies are owned and operated by the Indian outsourcers. But don’t forget that the fastest-growing employers in the Indian IT industry are the big US and European companies such as IBM, SAP and Microsoft.

Meanwhile, Computing reported last week that Chinese and Indian venture capital investment in new technology is expected to outstrip Europe by 2011. The UK has often been criticised for not showing enough faith in its IT startups – soon it might be India or China it turns to.

It is remarkable how quickly the Indian effect has revolutionised the shape of the IT industry. Even five years ago, outsourcing to India was hugely controversial, with national newspaper front pages decrying the latest call centre to move its operations overseas.

Today, offshore IT professionals have practically eliminated the skills shortage for basic technical skills, such as programming, support or maintenance. If you can’t employ enough techies, just buy them in from India or elsewhere.

The Indian firms deserve their place on the world stage, but now the challenges they face are similar to their Western competitors – a sign of their globalised nature.

For IT managers, the world is a stage from which you can choose the very best players.

Related whitepapers

Related jobs

Do you agree?

IT white papers

Search vnunet IThound

Top categories

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Watch

Shaun Nichols and Iain Thomson

03 Oct 2008

6.49 MBPodcast Special: Views from the Valley More...

Podcast image

02 Oct 2008

14.35 MBComputing podcast - Next-generation broadband Britain; and we report from Gartner's IT security summit More...

Shaun Nichols and Iain Thomson

26 Sep 2008

3.43 MBPodcast Special: Views from the Valley More...

Poll

Google Android

Google Android

Are you intending to try out a Google Android mobile phone?

Previous poll results

Spotlight

MoD building

Latest data breach leads MPs to demand culture change

MoD admits to losing a hard drive containing up to...  More...

Online shopping

E-retailers urged to prepare for Christmas

Credit crunch sending shoppers online for cheaper presents   More...

Mobile phone

Emerging markets drive mobile growth

Mobile penetration rates expected to reach 95 per cent by...  More...

Digital information

Poor data classification costing companies dear

Millions wasted on searching through clutter, says analyst   More...

Primary Navigation