I recently read an article about Apple's pullout of India for it's call center. {Article Link} In it they give an explanation as to why Apple did pull out. The main points were that India is becoming more expensive everyday. Entry level pay has been increasing by 13% year after year, and manager pay has been increasing by 30% year after year. There is also more and more competition for employees so turnover has been high.
So it looks like the world is getting flatter. India's economy has grown so quickly that the very large cost incentive which drove corporations to flock to India has dried up. Now India will have to compete on merits alone in a more fair competitive environment. Of course there are many other countrys where pay is still very inexpensive so the cycle will continue. And Apple has stated they are looking at other countries as alternatives. But the pace at how pay equalizes I think is very surprising.
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That surprises me too! How fast it appears the incentive to ship work to India has lessened (but not disappeared completely). I also heard the standard of living around India is making it more attractive for engineers to make a better life for themselves over there. (Better housing, etc.) I wonder what the job environment will look like in India in 5 years!
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