Bangalore IT boom
A snapshot of an American newspaper front page, 6 years ago..
The phonomenon of outsourcing took the world by storm, especially the US. After the dot com bubble in late 90s and the subsequent burst in early 2000, it seemed like the technology boom had come to an end. But what happened later was like a twist in the tale. India had already laid the foundation to become a major outsourcing hub, thanks to all the low cost, back end and Y2K projects which gave India a chance to prove its potential way back in 90s itself.
After 2003, the real wave started, with the outsourcing of millions of jobs..
Infosys increased their headcount from 20,000 to 1 lakh in 3 years from 2004 to 2007.
IBM India grew 800% from 9000 employees in 2003 to 74,000 employees in 2007 (today it has 1.5 lakh). Similar growth for other companies like Wipro, TCS, HCL and so on.
This did not go well with the Americans initially. Afterall, Indians were snatching their jobs!! There were silent protests and sarcasms. There were sarcastic movies, ads showing Indians in poor light. Indians sitting in cramped rooms with Snake charmers and answering calls or writing code.
The word “Outsourced” & “Bangalored” found an entry into the prestigious Oxford dictionary!!
This news article shown in the pic is a bit on the sarcasm side showing a techie sharing the road with a cow :)
If you are interested in knowing more about the roots of outsourcing, globalization, how our Indian companies adapted to its demands, quickly took advange of the business model, its evolution, impact on culture of Americans & Indians and more insights, I suggest you read the book named “The World is Flat” by Thomas Friedman. I would say its a must read for anyone in the IT industry.
Friedman has also travelled extensively in India to find out how India has still managed to maintain its culture along with globalization and its impact, and made it into a mini-documentary called “The other side of outsourcing”
You can watch it online here:
What do you feel about the outsourcing wave? Has India established itself as the only major hub? Do you feel China can threaten India in the future as an alternative, lower cost hub? What about Philippines, Sri Lanka, Mexico? Can they also become future hubs?