I manage companies web sites (develop from scratch or upgrades etc.). I outsource the work. I submit a lot of RFP's. The majority of responses come from companies in India, UK, US and Eastern Europe. I am wondering why the prices from India are 2 or 3 times as much as the others? Are the Indian companies monitoring competitor pricing?

I know that India is booming but the higher prices will make India lose its competitive advantage.

Any explanations?

That is interesting to know, infact first time I heard that on outsourcing, Indians are rather expensive.

What I feel that it depends upon nature of company which is contacting you. Certainly there are some companies here which do real strict control on qualities and hence they are expensive, sometimes very expensive.

May I know which part of work get the most expensive quotes ?

Hello GossaDRW,

I totally disagree to you in regards with the pricing.

It really make me laugh that the outsource company in India charged you higher then a company in UK / US. Reading to your replies it seems that you are a web hosting company and outsourcing the support.

Please let me know in case I can assist you here for anything

Thank you.

Indian IT companies are not only efficient but also highly competitive - very cheap.

because of higher valuation for Rupee (comparing dollar), Indian companies are forced to increase their charges (only for new contracts) between 2 to 3%.

I am a Materials Management professional - there are random data available - if readers wanted me to proove that Indian IT companies are cheap - I can work out and give you details to the satisfaction of all - as the data available are from reliable web sites

next year there may be little changes because of change of taxation policy.

Indian IT companies growth is also in par with International competitors.

there is no response as of now.

let me explain the case further - Indian IT Industries covers almost everything in the Industry. Some IT Industries are having expertise in Financials, Banking, Insurance, etc., (Infy, TCS, 3i Info Tech, etc.,) where they are very strong. Some are strong in BPO , Internet/Web, connectioned activities (like Sify, TCS, etc.,); some are concentrating Hardware, High tech. enginneering/Auto design,, etc., (like Wipro, HCL, etc., ) Just I gave very few examples. If segregation is required, at micro level, I can give input.

If one approach a particular IT Industry for a particualar job, they are Industry leaders and they can give highly competitive rate (which will be 60% to 70% lowers than their peers.

Now that Rupee is weakeniong (Rupee just lost about 5% in comparison with US dollars), Indian IT industries will be much cheaper than International charges.

In regard to other cheaper employees world like China etc., they m,ay be far behind from India because )1) English Language (2) understanding Law, and work flow management - Since Indias way of working came straight from Engilsh for Indian to work with software application is easier than others and hence cost advantage.

I guess our community still not so active however I strongly feels that its just personal experience of user GossaDRW which by luck comes out to be expensive otherwise everyone knows that Indian companies are cheap and efficient.

Mr. GossaDRW may be correct to some extent if he is concerened about BPO -ITES functions more associated with hardwares delivery - there Indian IT Industry is less competitive because payout in IT Industry professional is bit costly - for hardwares Indian IT Industry has to depend upon developed Western Country. Still they are equal to their peers in their land and ceertainly not on higher side.

secondly. Indian IT Industry concentrates on long term contract say between 3 to 5 years and mostly on high value Contracts. Small players (don't ask for names) in India go in for short terms contract, - naturally if their costs is added up with mobilisation and demobilisation, down sizing overheads - their cost is likely to be on higher side for short term contract.

if Mr. GossaDRW spell out his exact area of problem, this community can certainly help to get a good and competitive vendor.

As far as BPO, ITES, and short term contract, Indian IT Industry rates will be equal to other peers and Indian IT Industry may not be cheap.

I guess Mr. GossaDRW never bother to reply after asking this question.

if any one have similar problem, I can provide them information (through eTI) - after all Materials Management is my profession for over a period of 3 decades - handled several thirillion worth of Contracts includes every goods/services in walf of life (SPACE PROGRAMME is an unique union of all sciences)