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Do IT firms give value for money?

Source: Do IT firms give value for money? - The Economic Times

Excerpt:

India’s huge pool of trained, English-speaking IT workers has perhaps heralded the first truly services revolution in the world where for once India is the star player.

And now questions are being raised about the very nature of its competence? Just how competent are Indian IT pros ? Are they capable of error-free first class work?

US, Inc. has never doubted India’s competence and that’s why they have made a beeline for India’s talent centres. But, now some American experts are veering around to the view that offshoring work to India may help save some time and money initially, but ultimately more time and money are lost.

So much so, they are saying that the number of errors that crop up as the work is done in haste is not funny and that happens because the Indian suppliers get a bigger profit margin out of fixing repairs.

Yes, it is true, haste often means waste. Many times , US companies send work to India to save on costs and often enough it is seen that in absolute terms, savings are difficult to make.

Labour being cheap, Indian suppliers tend to work with a large workforce to finish a job faster. But if you double the staff, the net savings is zero. Fred Brooks' research at IBM showed that doubling staff on software projects doesn't cut the schedule in half.

The bigger-team-to-finish-a-job-faster strategy has other problems also. It’s true that some time is saved but there are more bugs in the code then than if you had used a smaller team and took a little longer.

Conclusion: Coming back to the question we asked in the beginning, ‘do Indian IT companies really provide cheaper and better service?’ Yes, they do. Just look at how more and more high-end jobs are going their way.