Indian wage spiral forces TCS to outsource in Mexico

The increasing cost of labour in India is forcing the country’s largest software services provider to hire 5,000 employees in Mexico.

Tata Consultancy Services (TCS), which opened a software development centre in Guadalajara, Mexico, last week, will outsource the first 500 jobs from India in this financial year. A further 4,500 jobs will follow over the next five years.

A talent supply crunch in the booming services sector in India, coupled with a sharply appreciating rupee against the dollar, is threatening to knock the country off its perch as the world’s leading outsourcing centre.

“We see costs rising in India and people becoming less available,” Gabriel Rozman, president of TCS in Latin America, Spain and Portugal, said. “That’s why we’re going to places like Latin America, which has professionals and reasonable costs.”

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Outsourcing Your Life

Sending work offshore has transformed the U.S. economy. Now, some families are tapping the same approach for personal tasks, getting them done for a fraction of what they'd cost at home. Taking your to-do list global.

When David San Filippo decided to create a tribute video in honor of his sister's wedding, he could have gotten a recommendation from a friend or looked up video editors in the phone book. Instead, he did what big corporations have been doing for more than a decade: sent the work offshore.

On the Internet, Mr. San Filippo located a graphic artist in Romania who agreed to do the whole thing for $59. The result was a splashy two-minute video with a space theme and "Star Wars" soundtrack. It won raves at the wedding.

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