Re:Talent shortage in Indian IT
by scott_w on Wednesday May 30, 2012 @11:01AM
(#4043100)
Perhaps Indian companies can get away with this because of the (possibly perceived) cost differences compared to a US/European consultant.
If the base day rate of an Indian consultant is £100/day, and an English consultant £500/day, then the Indian consultant can still throw on more inefficiencies (5x as much) before matching the cost of an English consultant.
So, in theory, an Indian consultancy firm can afford to throw extra developers, servers etc. at a problem and charge the client because it still works out cheaper.
Please note that I'm not slating Indian firms or programmers, merely pointing out economics that could help explain the above behaviour.
If the base day rate of an Indian consultant is £100/day, and an English consultant £500/day, then the Indian consultant can still throw on more inefficiencies (5x as much) before matching the cost of an English consultant.
So, in theory, an Indian consultancy firm can afford to throw extra developers, servers etc. at a problem and charge the client because it still works out cheaper.
Please note that I'm not slating Indian firms or programmers, merely pointing out economics that could help explain the above behaviour.