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India Outsources to Mexico!

One evening in 2004, I sat in Stanford’s Terman Engineering building after attending a Tom Kosnik ETL seminar. I was meeting a friend of a friend who claimed to have built a brand new search engine that would take on The GoogMonster. I listened in amazement – in 2004, it took very little tech talk to amaze me – as I heard the man talk about the “next generation of search” after Google, the paucity of publishers versus consumers on the web (before blogging really took off), etc.

Since search engines are inherently harder to build than a $12000 startup, the conversation then turned to a topic that no one gives a rat’s ass about anymore: outsourcing. I wondered why my friend had chosen to shy away from Bangalore, the irritatingly nicknamed “Silicon Valley of India” and picked Pune instead.

To which he quipped, “I’ve seen that movie, and I don’t like the way it ends. It’s called the bubble”.

It is hilarious to find, then, that TCS, an Indian outsourcing titan, has started offshoring gigs to Mexico on account of rising local costs. That’s what happens when average software engineer hikes in a region are usually north of 15%! Contrast that to the measly average 4% hike seen by Americano programmers, and you start to see why the move makes sense. I’ve heard several stories of Bangalore IT types accepting 2-3 jobs at once and nailing the “right” opportunity three weeks into ALL THREE. How convenient!

Can’t wait to see what happens when Bangalore execs visit Guadalajara – maybe they could whack a pinata with a cricket bat!!

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Categories: india, outsourcing, tech