Monday, July 25, 2005

Repeat after me: level playing field talks about a "double whammy for Indian IT players".

What is this double whammy they speak of? Competition from overseas companies on two fronts. More specifically, competition for resources and competition on prices. An Accenture or an IBM can (and will) take on the Indian offshore players. It's a matter of time and capital.

What does this mean for customers in US and Europe? Theoretically, increased competition should result in better quality and better prices. But till clear market leadership emerges, poaching of resources (see the linked article for some attrition figures) and aggressive pricing will continue.

Yes, your technical architect will be 30% cheaper, but you will go through 3 of them in 3 months.