* Readers speak out regarding outsourcing in India, Pakistan, Vietnam and beyond
I can always tell when an article hits a nerve, as I get a lot of reader feedback. That’s a good thing – sometimes writing a column can be a bit like being a radio DJ – you never really know if people are listening until they call in.
My last article discussed new taxes being enacted by India to encourage more companies to outsource to Indian-owned companies, and briefly talked about some alternatives to India. It was clearly one of those “hot button” subjects. I received numerous e-mail messages from readers, several of which are worth sharing.
One reader had an excellent perspective on outsourcing to third world countries:
“This is the natural progression of economics. As third-world nations build their economies and their income rises, it slowly approaches equilibrium to the point that it no longer makes economic sense to outsource to them. This new tax simply accelerates that process and proves the old adage that no nation has ever taxed itself into prosperity.
“Trade restrictions won’t stop outsourcing; outsourcing will stop outsourcing by creating equilibrium. It’s always ironic that those whose political philosophy are supposed to espouse the enlightened view of ‘spread the wealth’ are in fact the least interested in doing so.”
Another reader clearly has had a bad experience with Pakistan:
“You failed to mention that Pakistan has a very low level of high-level education in general, horrible infrastructure, and extreme instability, and is recognized internationally as an exporter of terrorism (as opposed to software services) and a classic example of a failed state. No company in their right mind should consider investing even a dime into such a noxious environment.
There is more to an outsourcing destination than low taxes and cheap labor. Next time, why don’t you recommend Sierra Leone or equatorial Africa as a great alternate outsourcing destination to India: after all, they do have minimal taxes, a lower cost structure, and no red tape to speak of. By your logic, this should make them ideal locations.”
Another reader wanted me to know that South Africa is an alternative outsourcing destination (I had to admit that I was unaware of the burgeoning South African outsourcing movement):
“In South Africa we are technologically advanced and our currency level should be appealing to most international organizations. We are an English speaking country and as a Rainbow nation, we have diverse cultures and people from all over the world, and therefore have access to people who speak other international languages. Organizations can also take advantage of ‘follow-the-sun’ time zone differences and most importantly we work hard and deliver service!”
Yet another reader wanted me to know about the Philippines:
“On your outsourcing article, please don’t forget the Philippines. We produce graduates that speak far better English than those in China, India, Vietnam or Pakistan. Heck, we even speak better English than some Americans.
“Another plus is that we are more culturally affiliated with North American companies (i.e. being a U.S. colony before World War 2). So why don’t these things count? We have far more sophisticated IT infrastructure, far more reliable power grids than India, Vietnam or Pakistan.
“So why exclude us?”
In my defense, I never specifically exclude any country from consideration – it’s more a function of not having enough time to cover all of the alternatives (yet). I thank everyone for all of the voluminous (albeit occasionally venomous) replies – at least I know that you’re reading.
I am very interested in continuing to cover the various offshore outsourcing destinations. If you would like to send information to me on outsourcing options in your country, I am happy to hear about them.
I welcome your ideas, suggestions and comments on the subject of outsourcing; my e-mail address is below. Thanks for reading.
