Outsourcing Doesn't Stop at India Anymore

A weak dollar and rising salaries prompt search for new locales
By Sam Gale Rosen,  Newser Staff
Posted Nov 7, 2007 5:07 PM CST
In this photo released by the Presidential Close-in Photographers Office,(PCPO) Philippine President Gloria Macapagal Arroyo,right, receives a copy of the book %u201COffshoring and Outsourcing Philippines   (Associated Press)
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(Newser) – If you're mad about your job being outsourced to India, don't worry: it may soon be outsourced to somewhere else. A weak dollar, rising salaries in India, and a high rate of attrition there are leading US companies to look for alternatives to the subcontintent for their outsourcing needs. Still, no single clear alternative has yet emerged, reports PC World.

The rupee has strengthened against the dollar about 12% since the beginning of the year, and a need to cut costs may be bad news for the number and quality of Indian staff. The changing face of outsourcing is likely to affect smaller operations more than larger outfits in the country, because bigger companies have more options for trimming their budgets to meet client demands.