From: "Antti Kurenniemi" 

Heh heh, good timing on posting that - I have just been offered a job as a
leader of a group of Indian programmers located in Dubai, doing contract
work to the US and Europe. Tempting (good pay), because I like challenges,
but I haven't yet made up my mind if it is a challenge or just plain
impossible...


Antti Kurenniemi

"Rich Gauszka"  wrote in message
news:408fed98$1{at}w3.nls.net...
> Cost savings of 3 to1 but the difference in productivity was 6 to 1 due to
> distance and difference in business practices
>
> http://www.nytimes.com/2004/04/28/technology/28SOUR.html?th
>
> "For three years we tried all kinds of models, but nothing has worked so
> far," said the co-founder and chief technology officer of Storability
> Software in Southborough, Mass. After trying to reduce costs by
contracting
> out software programming tasks to India, Storability brought back most of
> the work to the United States, where it costs four times as much, and
hired
> more programmers here. The "depth of knowledge in the area we want to
build
> software is not good enough" among Indian programmers, the executive said.
>
> If it sounds like "Made in the U.S.A." jingoism, consider this: The
> entrepreneur, Hemant Kurande, is Indian. He was born and raised near
Bombay
> and received his master's degree from the Indian Institute of Technology
in
> that city, now known as Mumbai. Mr. Kurande is not alone in his views on
> "outsourcing" technology work to India. As more companies in
the United
> States rush to take advantage of India's ample supply of cheap yet highly
> trained workers, even some of the most motivated American companies - ones
> set up or run by executives born and trained in India - are concluding
that
> the cost advantage does not always justify the effort.
>
> Another Indian executive in the United States who has soured on
outsourcing
> is Dev Ittycheria, the chief executive of Bladelogic, a designer of
network
> management software with 70 workers, also in Waltham. Bladelogic, whose
> client list includes General Electric and Sprint, outsourced work to India
> within months of going into business in 2001. But it concluded that
projects
> it farmed out - one to install an operating system across a network,
another
> to keep tabs on changes done to the system - could be done faster and at a
> lower cost in the United States.
>
> That was true even though programmers in India cost Bladelogic $3,500 a
> month versus a monthly cost of $10,000 for programmers in the United
States.
> "The cost savings in India were three to one," Mr.
Ittycheria said . "But
> the difference in productivity was six to one."
>
>
>
>

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