Just when we though we had the model nailed…

I just finished reading an article about how Tata Consultancy Services (TCS) is investing 12.6 million in the Chinese market.? It appears the Maharashtra (literal translation: "Great Nation"), India based consulting firm is leveraging the even lower cost of labor in China.? With tech salaries rising at 15% a year in India the consulting company is looking to cash in on the low wage labor in China.? This should not be hard to do with monthly salaries for programmers in high-tech hot spots like Beijing, Shanghai and Shenzhen between $600 and $960.? TCS already has a secured the first China based contract with Microsoft for $2 million.? Is this the beginning of a trend where the proven low cost outsourcer is looking to move up the food chain and play middle man while developing technical expertise in low wage markets?

-RJB

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