I don't know what the outcome was, but I don't think it was satisfactory. Unless the outsourcing is in a subsidiary - I expect the results to be bad.
You are preaching to the chior, here is a piece from todays paper on cost savings etc.
No smooth sailing for offshoring
Moving IT work overseas can have unexpected costs
For example, software developers in Bangalore, the hub of the Indian IT service industry, make an average annual salary of about $12,000, according to a recent report from the Tech Strategy Group, a Redwood City consultancy that advises companies on offshoring.
"Most companies are seeing a 30 to 40 percent cost advantage," by sending work to India, said M.R. Rangaswami, co-founder of the Sand Hill Group, a San Francisco consultancy.
sfgate.com
So Gartner is now saying 30-40% cost reduction, actually I think that figure overestimates savings, because the failure rate of offshore projects is much higher. But either way, CFOs were expecting more like 75-80% savings on these initiatives, regardless of what Gartner says now, based on the hype about "superior engineering talent than USA for 12K/year" which was the Gartner by-line a year ago.
You never, never hear the "offshore engineering talent is superior" claim anymore. Now it is just cost, it used to be cost and quality that was so attractive in offshoring. This quote from Breyer is the most you see on quality these days, no comparison of what we have here.
"Taiwan and China have some of the world's best designers of wireless chips and wireless software," said Jim Breyer, managing partner of Accel Partners in Palo Alto. "And India has extremely talented software developers and designers." |
