Market Corrections: Offshoring To India Getting Expensive
from the what-a-surprise dept
A few years ago, when tech jobs were still difficult to come by there was a series of silly articles pushing for protectionist policies that would not let companies offshore jobs. It doesn’t take a very thorough understanding of economics to see why this is a bad idea. It makes the US companies a lot less competitive, and simply makes them more likely to go completely out of business — meaning those jobs would disappear anyway. However, that said, we’ve been pretty vocal from the beginning that those who were rushing to offshore jobs were ignoring the hidden costs of offshoring — and that many would regret their decision to go offshore (something that proved to be true). It was usually done as a way to cover up a problem at home, with the hope that sending it overseas would magically fix the problem. The reality is that it often made it worse. Managing an overseas team can be quite difficult, and slow down the process considerably. However, more importantly, market inefficiencies only last for so long — and some companies are noticing that offshore Indian developers are getting a lot more expensive and don’t represent such a good buy any more.