Wage Inflation: Perceived to be the greatest threat to outsourcing

Syntel, Inc's recent poll showed that IT executives perceive wage inflation as the biggest threat to global outsourcing. The ranking goes:

-- Wage inflation in India 33%
-- Quality concerns 27%
-- Possible outsourcing legislation 21%
-- Perceived security risks 10%
-- Middle-management resistance 9%

Please check the complete report here:

As explained in a past post (please check it here), one should be careful in pricing his/her services. Putting too much premium in thyself might actually be a step out of the roof- straight into the ground!

Outsourcers who failed

The Outsourcing weblog Quotes a KPMG study pinpointing outsourcers who were unsuccessful because of failure to use the outsourcing model properly. The study is very timely since there are already some claims that it is not really beneficial to outsource.

I remember a CEO of a big outsourcing company who recently said; “Clients are supposed to save time and money by outsourcing. Putting it simply, a client is able to devout more time to his core business by having somebody perform certain parts of his work. However, there are people who use the time saved by going to the bar and start getting drunk early”