NEW YORK, April 28 (UPI) -- Indian-American executives of high-tech companies are rejecting outsourcing to India for the same reason others have shipped jobs offshore: the bottom line.
Although high-tech workers in India are less expensive than their U.S. counterparts, in many cases the productivity difference is even more significant, the New York Times reported Wednesday.
Take Dev Ittycheria, the chief executive of Bladelogic, a designer of network management software in Waltham, Mass. Bladelogic outsourced work to India within months of going into business in 2001 but found outsourced projects could be done faster and at a lower cost in the United States.
That was true even though programmers in India cost Bladelogic $3,500 a month versus a monthly cost of $10,000 for programmers in the United States.
"The cost savings in India were three to one," Ittycheria said. "But the difference in productivity was six to one."
Bladelogic's chief technology officer, Vijay Manwani, born and educated in India, predicts once the "hype cycle" about Indian outsourcing runs its course, projects will come back to the United States "when people find that their productivity goals have not been met."
