Why India’s IT Industry Won’t Go Away

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    Mark Hebert, executive VP for Sierra Atlantic, which runs an office in India, offers this cogent explanation for why India’s future in IT services continues to look bright. Of course, he has a biased perspective, but you can’t dispute arguments such as:

    India has a multiyear experience advantage over other nations… Indian IT companies are hitting the sweet spot of the enterprise application package market, offloading many of the high-volume, routine tasks that chief information officers struggle to maintain with high-cost U.S. resources. Countries like China and Russia simply don't have the experience to handle these tasks, and it will take years for them to come anywhere close.

    India has vastly improved its IT infrastructure…. Distributed system development is now the de facto standard in many IT shops. India's IT infrastructure improvements enable Indian businesses to match salary increases with productivity improvements.

    India is rapidly creating huge economies of scale in IT offshoring, which further offset the inflationary pressures of salary increases. To counter wage increases, many offshore outsourcers are implementing large team sizes and long-term projects to help maintain utilization levels at above 75 percent. With larger teams comes the ability to include new college graduates in the mix [at $5,000 annual salaries], enabling them to train on the job.

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