Cost advantage of outsourcing diminishing: Report
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Cost advantage of outsourcing diminishing: Report

By siliconindia staff writer   |   Monday, 27 September 2004, 07:00 Hrs
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NEW YORK: The advantages of outsourcing from the US to cheap brainpower nations like India have been diminishing because the wage gap between America and Asia is shrinking, a media report has said.

"The wage gap between the US and Asia is shrinking. Pay scales are rising fast in India and China for college educated, English-speaking professionals," the Business Week said.

The weekly says that the reports that General Electric (GE) plans to sell its entire business-processing operation in India for USD one billion raises the "interesting question of whether the offshoring phenomenon may be peaking."

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