Indian Offshoring Firm... Offshoring To Mexico

from the cheaper-jobs... dept

There's been a lot of controversy over the past few years about offshoring of jobs, even though the anger towards it tends to be emotional rather than rational. It was exaggerated during the recession years, as companies miscalculated and thought it would save them money (not recognizing all the hidden costs) involved in the process. The other thing is that as more and more jobs went to places like India, those "hidden costs" would become not so hidden and the direct cost of hiring in India would increase. A year ago, there was a report highlighting exactly that: hiring people in India was getting expensive. So, perhaps it should come as no surprise that one of the biggest offshoring firms in India is now offshoring its own jobs to Mexico (via The Raw Feed). This is just the natural economic cycle, but we're sure it will make some people irrationally angry.

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  • identicon
    Withersteen, 8 Jun 2007 @ 6:28pm

    Good news for me. I just sold out in the States and have moved to Mexico, where I'm currently running an internet cafe. Here's to the coming economic boom- hurry up and build that wall!

    reply to this | link to this | view in chronology ]

  • identicon
    Overcast, 8 Jun 2007 @ 7:59pm

    hahaha, that's cool :)

    Hey - what's good for the goose...

    reply to this | link to this | view in chronology ]

    • identicon
      mvb, 8 Jun 2007 @ 10:21pm

      Re:

      Thats funny I am pulling down some medium to large dollars working as an ecommerce consultant for a company in mexico city Double what was available to me in the north eastern US.

      reply to this | link to this | view in chronology ]

  • identicon
    Lawrence D'Oliveiro, 8 Jun 2007 @ 10:18pm

    Here's a fun idea...

    • India's outsourcing builds up thriving industries in Mexico.
    • Mexican illegal immigrants in the US get attracted back home to work in the new industries.
    • Folks in the US start complaining about the "brain drain" which is hurting the US economy, how these foreign industries are stealing "their" workers, and what they can do to retain them!

    reply to this | link to this | view in chronology ]

  • identicon
    jdragon, 8 Jun 2007 @ 11:34pm

    And Mexican firms are offshoring outsourcing to iraq.

    reply to this | link to this | view in chronology ]

  • identicon
    steelbob, 9 Jun 2007 @ 5:38am

    time shift

    I have outsourced directly to India and Mexico in the past. One advantage of Mexico to the USA is similar Time Zones. Post project support is easier to coordinate.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 9 Jun 2007 @ 8:29am

    outsourced back in to the US

    Well, at this rate companies will be outsourcing jobs to India so they can go to Mexico, thirty other countries, and in the end, it'll be right back here in the US - making it cheaper to not outsource at all...

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 9 Jun 2007 @ 9:13am

    And the best thing we can do for our own jobs is encourage the formation of robust labor unions in Mexico and other places where wages are currently low!

    reply to this | link to this | view in chronology ]

  • icon
    boomhauer (profile), 9 Jun 2007 @ 6:41pm

    i bet

    you could probably find instances of any country outsourcing to any other country... going to be a low bidder somewhere. ive heard of indian firms outsourcing to the US.

    but i hope this grows, mexico needs an ecnomy boost so badly.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 9 Jun 2007 @ 7:33pm

    indian firms outsourcing to the US.

    which in turn outsources that job to a different Indian firm than the first one - in the same building.

    reply to this | link to this | view in chronology ]

  • icon
    boomhauer (profile), 10 Jun 2007 @ 12:04am

    and in the end...

    ..some unpaid intern winds up doing the actual work/code/etc

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 10 Jun 2007 @ 3:32am

    It's the deception that annoys

    The whole outsource to India thing was built on a deception. That there was a huge pool of highly skilled programmers in India with top notch degrees and dirt cheap prices and no downside to outsourcing, which was never true. They came out of University with top degrees sure, but with minimal ability. Practice make perfect, not theory makes perfect!

    We have a project out in India now, the programmer (top degree) can't even build a bitmap from the raster data and header info. Pathetic! We spend 3 hours explaining what should take him 20 minutes of programming time.

    We had better results from the Russian programmers, well some anyway, the problem with outsourcing is the company puts the cheapest guys on the project and they're often not good. Because it's outsourced, you don't get to hand pick the people working on the project.

    So when we directly hired Russian programmers, and some didn't work out, they could be fired, but when we do it through an outsourcer, we can't individually hire and fire them.

    It only takes one bad programmer in a team to produce a bad end result. So a single bad programmer assigned by an outsourcer can seriously reduce the quality of the end product.

    reply to this | link to this | view in chronology ]

  • identicon
    Andrew Garrett, 10 Jun 2007 @ 5:37am

    In soviet russia, india outsource to YOU!

    Sorry...

    reply to this | link to this | view in chronology ]

  • identicon
    reed, 10 Jun 2007 @ 11:25am

    Outsourcing, we all know it's wrong!

    I really think it is time to revoke the charter of all US corporations. The corporate system is broken. It all started as a way to get better products and better service and at the same time provide good jobs for Americans. We all know service is now crap and all our products that are designed to break within a couple of years nowadays are crap to.

    On top of that benefits are disappearing and wages have gone down slightly for the majority of people over the last 30 years (adjusted for inflation). This is within the backdrop of increased education and worker productivity throughout the US. So if we are all working harder and more educated why aren't we feeling the benefits?

    Well the answer is corporations have no loyalty anymore and are just in it for themselves! This is bad for the economy and bad for our society. It is time we stop fooling ourselves and roll back to the corporations of the early 1900's that had a specific charter, limited operation time, and a board of officers that you could actually hold accountable for their actions.

    We have tried this "deregulation" thing for awhile and it has landed us in a quagmire of corporate interests controlling our government. It is a sad commentary on a once great nation.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 10 Jun 2007 @ 11:41am

    Futurama

    reminds me of that Futurama episode with the newspaper routes

    reply to this | link to this | view in chronology ]

  • identicon
    Old Fart, 10 Jun 2007 @ 8:44pm

    Deja Vu

    This should come as no surprise. Anybody here old enough to remember the same thing happened in the late 80's to early 90's during the "Let's outsource to Ireland" frenzy?

    reply to this | link to this | view in chronology ]

  • icon
    TechNoFear (profile), 11 Jun 2007 @ 12:02am

    Dealing with past Outsouring

    I am now having to deal with another cost of outsourcing.

    I have issues with the software used in some heavy machinery safety systems (ie UTC was just 'adjusted' forward 17 years to delay known Y2K bugs, fails to record data for approx an hour, resets to default values during operation).

    I can not find anyone who has any idea of how these systems communicate to each other during operation. All this knowledge was lost when the corp outsourced and not retained after the outsourced production finished. It is not in my contract to fix these issues, they just delay my

    The corp sends in an updates to the saftey system that reduces the time that the bug occurs for but dramatically increases the frequencey. My client is forced to do a limited roll-out to test and then expects me to find the bugs.

    I now know more about some of the operation of these 50 tonne machines than the manufacturer or operators (even though I would rather not have spent MY time/$ working it out).

    In ten years time when Y2K hits them (again), MY time/knowledge is going to cost them thousands more times the $ they saved outsourcing.

    reply to this | link to this | view in chronology ]

  • identicon
    Brad Eleven, 11 Jun 2007 @ 4:00am

    @reed

    I agree that corporations are to blame, but I think the origins are older than these United States.

    "The corporate system ... started as a way to get better products and better service and at the same time provide good jobs for Americans."

    That would have been so cuuuuute!

    Nope, corporations were invented in jolly old England, as a way for investors to limit their losses to their stated investment in a firm, e.g., it didn't make sense to allow venture capitalists to face personal ruin if the tea company they invested in failed.

    However, these entities hired lawyers which argued that the non-person nature of a corporation exempted it from lawsuits filed for non-payment of contractual obligations. The English court responded by granting corporations the status of "legal personality".

    The rest is history. Once corporations were able to claim status as a fictional/legal/moral person, they then claimed citizen rights, e.g., the right to petition elected representatives. They'd have the right to vote if the judges had been open to bribery--and they may well have it someday.

    So their "petitions" to American "elected representatives" got them tax breaks and other incentives to offshore and outsource. I hope their sweetheart deal turns into a nightmare for them, and that when they come back to the Congress for another favor to reverse their fortunes, they'll be laughed out.

    Of course, I also hope that tomorrow's sunrise is made of ice cream.

    reply to this | link to this | view in chronology ]

  • identicon
    DFAL, 11 Jun 2007 @ 11:31am

    Labor Wages Just One Piece Of The Puzzle

    Labor wages are just one component in the decision to engage in foreign outsourcing. Taxation and regulation are other concerns.

    If you want to push jobs overseas, vote for Democrats who will ram their socialism down our throats and tax everything we make away from us. (Everyone likes working for free, right?)

    Pertaining to the "hidden costs" of outsourcing, this reminds me of Dell's experience a few years ago when they outsourced thousands of support jobs to India; they had to move some of those jobs back because of many complaints about poor customer service. As a result, I will never even consider purchasing a Dell product.

    You get what you pay for sometimes.

    reply to this | link to this | view in chronology ]

  • identicon
    Shawni, 25 Aug 2007 @ 7:30pm

    Whatever

    Having seen what the Republicans have done, frankly, I'd be glad for some years of Democratic "socialism" - aka REGULATED CAPITALISM to those of us who don't have our head up Rush Limbaugh's viagra.

    reply to this | link to this | view in chronology ]

  • identicon
    MIke Allen, 8 Jul 2010 @ 11:35pm

    Outsourcing to Mexico???

    That's Great!! From past few years Projects has been outsourced to India. And now finally an Indian company is outsourcing its projects. It is worthy news to know. Well outsourcing to Mexico is great! Mexico has its resources and now getting its opportunities.

    reply to this | link to this | view in chronology ]

  • identicon
    Manufacturing in Mexico, 3 Jul 2012 @ 12:51am

    Manufacturing in Mexico

    According to experts Mexico is considered the "nearshore outsourcing hub of the United States" with approximately 95 percent of its clients coming from the U.S.

    Thanks for sharing me the information.

    reply to this | link to this | view in chronology ]


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