[biztech-discussion] BPO cost advantage diminishing

  • From: Ann Thryft <athryft@xxxxxxxxxxxxx>
  • To: biztech-discussion@xxxxxxxxxxxxx
  • Date: Mon, 27 Sep 2004 16:29:58 -0700

Hi folks,

I find the item below most interesting. I recall Andreas Ramos
predicting something like this to the rest of us in BizTech about a year
and a half ago.

Ann Thryft

"BPO cost advantage diminishing"
The Hindu - Chennai,India

New York, Sep 27. (PTI): The advantages of outsourcing from the US to
cheap brain power 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 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


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