Myth #2: Increased wages in India translate directly to increased costs for U.S. buyers of IT services

March 12, 2013

A common critique of offshore outsourcing is that wage inflation in India is quickly shrinking the value of labor arbitrage.   However, this analysis is based on three myths:

This post exposes the flaws in Myth #2 and explains how outsourcing professionals can leverage the truth to improve decision making and negotiations.  We explained Myth #1 here, and will explore Myth #3 in a future post.

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Myth #1: All Indian IT Wage Levels are Going Up at a Dramatic Pace

March 4, 2013

A common critique of offshore outsourcing is that wage inflation in India is quickly shrinking the value of labor arbitrage.   However, this analysis is based on three myths:

This post exposes the flaws in the first myth and explains how outsourcing professionals can leverage the truth to improve decision making and negotiations.  Future posts, will explore Myths #2 and #3.

Read the rest of this entry »


True Global Outsourcing: It’s about Skills, Not Visas

April 25, 2012

Writing in Forbes, veteran Forrester analyst Stephanie Moore, recently wrote that “every offshore development team requires an onsite component, [and] that [the] onsite component could be provided by American citizens — who naturally have more contextual business understanding, thus satisfying one of clients’ most pressing needs today.” (True Global Outsourcing Should End The Visa Debate). Moore is right that American employees can and should staff more of the onsite roles in global IT outsourcing projects, but the reason they don’t is driven more by the difficulty of finding American employees who have the appropriate skills and interests than it is by costs. Read the rest of this entry »


Red Bridge Principals to Ride Pan-Mass Challenge

April 5, 2010

One of the benefits of writing a personal blog is that I can allow myself to stray off topic from time to time.  Another benefit is that I can plug my personal causes.  Today I will be doing both.

For the fourth consecutive year, during the first full weekend in August, I will be riding my bicycle on a two-day, 163 mile route from Wellesley to Provincetown, as part of the Pan Massachusetts Challenge (“PMC”) to raise money for the Dana-Farber Cancer Institute.  I have committed to raise $6,800, and I would like your support.  If you would like to donate or read more about my appeal, you can do so at my PMC site.

The PMC raises money for cancer research and treatment at the Dana-Farber Cancer Institute. The centerpiece of its fundraising effort is an annual bike-a-thon in which cyclists ride across the Commonwealth of Massachusetts.  Because the PMC charges riders to participate, and uses sponsors to underwrite most of the cost of the ride, it is very efficient with your donations.  Last year’s $30 million gift to the Jimmy Fund of the Dana-Farber Cancer Institute included 100% of every check and credit card donation.  Read the rest of this entry »