Replies to post #350878 on Zeev's Turnips Talk Politics (ZTTP)

[SoxFan]

I work for an Indian company and I am the only American in the company.

In IT alone they have over 150 million people and they all speak varying degrees of English. To give you and idea if labor costs -

In 1999 I sold a SI contract to a major bank and the blended rate was $187 per hour beating out IBM and Oracle - it was for over $7 million with add-ons. It was all American labor.

Today the blended rate would be under $40 and 90% would be labor in India.

I can bill offshore rates for $32/hour but we add significant value. If it's just programming it's $25 per hour. I would rather sell rates in India for $32 or $25 because we make more money.

[PegnVA]

A company I worked for outsourced their HR Department AND IT Department to Costa Rica - now when employees have questions about any of their benefits/pay check or have computer issues they have to call Costa Rica and hope that person understands what they're talking about.
The move was designed to save this HUGE consumer products mfg corp millions, but the turnover in Costa Rica help became intolerable - once these folks got trained, they left for more money from another corp...there was no company loyalty. Turnover in Costa Rica and US employees spending time on the telephone to Costa Rica to get answers on their benefits/pay check and answers on computer issues, will probably not save that corp money in the long run.