Monday, July 26, 2004

shifting trends in outsourcing ...??

to quote from a news report on cognizant technologies' dominant second quarter performance:
Reflecting shifting global trends, Cognizant said that it had closed its European facility in Limerick, Ireland, due to higher costs of doing business in Europe tied to the strength of the euro. Europe produced 12 percent of Cognizant revenue.

Cognizant said it would perform the work in North America and India instead. It also said it had opened a facility in Shanghai, China, and had begun recruiting software engineers.
does this suggest a trend ? infy has already setup base in china, while tcs has been there for a bit now - infact china seems to be reducing the gap on india in regard to english speaking deficiencies. are indian companies starting to use china to maintain their margins in the wake of burgeoning costs in india? trying to be a middle man - how long before the clients directly move to shanghai before taking a stopover in bangalore? or i am misinterpreting it - perhaps its only to cater to chinese and far east clients that indian companies are setting up shop in china?

perhaps, i am just jumping the gun ... over-exaggerating ... over-reacting - but i am not a part of the outsourcing industry myself - and rely on the web,press and other media to provide me information that eventually builds my views - and this one says the gap is closing.

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