I wrote about keeping an eye on growing offshore costs in the magazine Managing Offshore, a CMP publication. The preamble to the article is:
"While many offshore firms come across as engineers and poor marketers, consider this: The gross margins of the better-run Indian firms are in the mid-40s -almost 15% better than the supposedly slick salespeople at Accenture can deliver. It is one thing if offshore firms continue to squeeze margins through optimized delivery models. But it is another thing if they pass along growing wage inflation and expect to continue to make similar margins"
There are 13 specific areas I suggest buyers watch for. It is a paid publication (and worth it), but send an email to the editor at [email protected] and mention I sent you and you may qualify for a free issue or a discount.
See also my blog What offshore vendors can learn from Southwest Airlines about pricing discipline, operational excellence and "fuel hedges"
