It was only a matter of time I suppose:
As Indian service providers get closer to their U.S. and European customers, India’s largest outsourcer, Tata Consultancy Services (TCS), has set up shop in a suburb of Cincinnati.
The company’s new services delivery center will be its primary software development center for North American customers. Located in Milford, Ohio, the North America Delivery Center can accommodate up to 1,000 staff, most of whom will be hired locally, the company said on Tuesday.
A number of Indian outsourcers are setting up facilities to be in the same time zone and be physically closer to North American and European customers. Infosys, India’s second largest outsourcer, and Wipro, the country’s third largest outsourcer, have, for example, set up IT services and business process outsourcing operations in Monterrey, Mexico. Wipro, which last year acquired Infocrossing, an IT services provider in the U.S., is also planning a facility in Atlanta.
It makes sense on a couple of levels—closer to the people you’re supporting and no complaints by clients that they can’t understand the person on the phone—but it means that techs that work there can expect to make diddly squat in terms of wages. There’s be no point in outsourcing if there isn’t a cost savings.
Link sent in by SEB reader Rich.