I'm reading Tom Friedman's book
The World is Flat, and I'm flying through it because it deals with a lot of issues I cover, relating to the tech industry, outsourcing, and globalization.
Just the other night I was reading in the book how India's days as the capital of offshore outsourcing, which is a huge part of the book, may be limited. You can add the CEO of SAP to those who think
India's salaries aren't the deal they used to be.
"India is slowly getting expensive," SAP CEO Henning Kagermann said in an interview published Monday in the German edition of the Financial Times. "We have decided to hire a certain number there, and then start looking at other locations."
Back
in August, Gartner saw this coming and predicted offshore outsourcing would follow the cheap labor to places like Vietnam.
The demand for skilled labor in India is driving
the turnover rates up. In addition to Indian companies, international firms have to compete against each other, and supply and demand means higher wages and more turnover.
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