Tuesday, June 06, 2006

Apple finds Indian jobs too pricey





India might still be the outsourcing apple in the eye of American businesses, but in Steve Jobs’ mind, the country looks too pricey these days.
US companies are even now offshoring work to India at the rate of knots, but the industry buzz is that the legendary founder of Apple pulled out of the world’s Back Office Central last week after facing rising costs and difficulties in hiring and retaining talent.

‘‘The turnover is high, and the competition for good people is strong.’’ The company feels it ‘‘can do it more efficiently elsewhere.’’ According to industry mavens, entry-level wages have climbed by as much as 13% annually from 2000 to 2004, while salaries for mid-level managers have gone up 30% annually during the same period to a median of $31,131.

Apple’s decision came even as the US behemoth IBM announced it would triple its investments to $ 6 billion over the next three years. IBM, which already employs some 42,000 people in India and is the country’s largest multinational employers, plans to hire thousands more, its CEO Sam Palmisano said during an analysts conference in Bangalore, the first time Big Blue has held such a meet outside the United States.

According to sources, the center had to be closed as it was not financially feasible. The company, however, will continue to provide technical support to its clients from a Bangalore, India-based third-party BPO services provider, TransWorks.

Still can't figure out what went wrong with India? Don't know - prob'ly Apple's tie-up with HCL Infosystems?

Whatever... The support would be no better and possibly worse if it was moved back. The training curve would need to start over again... The longer support stays in India, the better it gets...’’

Anyways Apple is "Thinking Differently ..."

source: ET/GlobalOutsourcingNow/Apple/Transworks/IBM

4 comments:

Ajit Chouhan said...

Hey Kris,gud stuff on your blog.But as a blogger you r not following a basic rule to give the link/reference for your posts.Do that for all your postings..Take this as a positive feeeback.

Kris said...

I'll do that ... Thanks a lot !!!!

jaleel said...

hey u got a place in wharton? just took hint from ur orkut id..

Anonymous said...

its high time the govt stepped in to restrict the salary hike...
its required for retaining existing businesses and also to maintain social balance.
Mridul