Entering the frontdoor of the outsourcing market is Pakistan, sneaking in the backdoor is India.
Interested-Participant has an excellent post on the challenges facing Pakistan in providing outsourcing. Here's an excerpt:
... although India is recognized as the largest recipient of outsourced telecommunications, many other countries are also providing workers for outsourced jobs. China, Malaysia, Singapore, and Russia are benefiting, just to name a few.
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Enter Farukh Aslam, Chairman of the Call Centres Association of Pakistan ... he predicts that the Pakistani call center industry will employ 10,000 workers by next year.
In other outsourcing news comes plans by Indian companies to head off the angry people who are pissed about all the high-tech work moving out of country. They'll do this by setting up backdoor companies in Canada and funneling the work to their companies in India.
Toronto Star (by way of Slashdot that has a lot of comments on the issue)
As U.S. lawmakers look for ways to discourage the outsourcing of high-paying software jobs to low-cost markets such as India, more Indian companies are opening back doors into the United States by setting up shop in Canada.
The idea is to offer alternatives to U.S.-based Fortune 500 companies that are eager to get some benefit from the cost savings of outsourcing. By moving work to a "near-shore" destination such as Canada, U.S. companies can mitigate the domestic backlash that may come with the "off-shoring" of jobs.
I'm not surprised companies would want to try and hide the fact they are against American workers. Of course the Indian companies doing this are more than happy.
"There are some (U.S.) customers who feel a great affinity to the Canadian market," said Ramalinga Raju, chairman of Hyderabad-based Satyam Computer Services Ltd., India’s fourth-largest computer services firm.
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Canada is one of several locations targeted by Satyam as "near-shore" or "near-sourcing" opportunities. The company has also set up software centres in Australia and China, is getting into Malaysia and Hungary and is considering moves into Mexico and South America.
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General Electric Co., Satyam’s largest customer, represented 13 per cent of total revenue in the quarter. The company does work for 109 of the Fortune 500 companies.
So there's no outsourcing problem. Only 20% of the fortune 500 companies are doing it.
Satyam only has 250 people so far committed to the Canadian market – 100 based at its Mississauga development centre and the rest working out of India.
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Ignoring these changes is what got many U.S. companies in trouble, which is why Satyam is planting seeds in China, a market expected to be the next global outsourcing opportunity after India has run its course.
60% of the outsourced jobs to their Canada "front" go straight out to India. Satyam also clearly admits that India will "run its course". With that many people in India they shouldn't need to go to China, but the fact is these Jackals are going to sell out their own people once their workers start actually making a decent living and ship all those jobs to China.
Anyone who is investing in Indian infrastructure and markets should take a second look at that statement. He is saying flat out that there will be major layoffs in India once they start demanding a decent wage, moving those jobs to China and other lower wage countries. This will cause a great pop to the current outsourcing bubble in India, which is propping up their economic growth. Once this occurs there will be a huge drop in consumer spending there directly affecting the whole of their economy and every industry in it.
