software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, May 24, 2006

Indian Offshore Software Outsourcing industry is headed for a crash

Indian Offshore Software Outsourcing industry is heading towards permanent and total collapse. Systematically India has converted millions of its talented engineers into becoming IT-professionals and low-end software outsourcing programmers for U.S., European and Japanese organization. In a world economy, the prices of commodity are increasing because of more and more demands and comparatively less supply. In western world however, in Europe and U.S. the people are making much less as compared to India & China continue to export their wage deflation and massive underemployment to the western countries. People who earn to make 100,000 dollars every year in large American organizations have lost their employment and since then have found new jobs in small organizations with 30,000 dollars per annum. Today the unemployment in U.S. is very low but every one is underemployed due to Offshore Outsourcing Development industry.

Offshore Software Outsourcing

First the European and American organization had a sigh of relief to found China and India where they could generate their services and goods for pennies on the dollar. Due to Offshore Software Outsourcing they could not sell these services or goods in their own local markets with some amount of underemployment have also grasped U.S., Europe and Japan. Chinese and Indian qualities are way superior in addition. The American and European organizations look into further cutting the cost of production for goods & service generation, with increased oil, gas & food prices with shortage of real estate. The main reason that Offshore Software Outsourcing and Offshore Software Development heading for crash is due to rapidly going up of wages in India and China while quality of productions and service of goods are same as best if not declining.
To replace China and India the western organizations now look for total automation in Offshore Outsourcing Services. The automated computers and robotic programs take full of control; in no time the outsourcing contracts disappear. Due to steady fall in stock prices and GD, India and China are becoming dry and their economies literally collapse with steady fall. Any nation that became a super power has in the past went out of a period with false boom or one can say negative boom, then a massive scary depression and after that full recovery with sustainable growth that creates a new super power.
The way this topic suggests is what happened to U.S. economy between years 1920s and 1940s. The same is repeating with India and China during 1995 to 2015, and currently the false export of services boom due to Offshore Software Outsourcing is over. Now it is the time for massive stagflation with increased global trade tension & protectionism. India and China will close the doors within no time once they will find they could not milk U.S. and Europe.
U.S., Europe and Japan will have little to care for China and India due to Offshore Software Outsourcing boom in these nations, if it’s evident that cheap employees from China or India could be more economically and efficiently replaced by artificial intelligence, computer automation, and robotics. In next ten years definitely India and China will reinvent itself, after huge crisis in Offshore Outsourcing Development industry.