India Outsources Outsourcing

Here's an article that made me laugh.  The International Herald Tribune has a story about a new outsourcing trend.  Some of the largest outsourers in India, such as Infosys and Tata Consultancy Services, have begun setting up operations around the world to outsource some of their outsourcing work.  Part of it is cost.  Salaries in India have been rising rapidly due to the great demand.  But part of it is about finding the right language and technical skills wherever they might exist.  An excerpt from the article:

One of the constants of the global economy has been companies moving tasks - and jobs - to India, where they could be done at lower cost. But rising wages for programmers here, a strengthening currency and companies' need for workers in their clients' time zones or for workers who speak languages other than English are challenging that model.

At the same time, India is facing increased competition from countries seeking to emulate its success as a back office for wealthier neighbors: China for Japan, Morocco for France and Mexico for the United States, for instance.

Looking to beat back these new rivals, leading Indian companies are opening back offices in those countries, outsourcing work to them before their current clients do.

In an era of globalization, work will continue to be outsourced to the locations that offer the right skills at the right price.  Who knows, maybe even the US will pick up a few jobs.

You can read the full story here.