Well, first of all, don’t even try it because we’ve smashed it all. In all seriousness, companies would have to commit. Unless you’re going to invest in more than 100 people, it would be difficult to set up shop. It wouldn’t become that cost productive or efficient until you reach a critical mass of 100. You would need management, resources, a physical location, and the labor arbitrage in India still exists. What roughly costs x here is a third there. So, in terms of people skills and the salaries, they’re all moving up, everything moves up. If you get Critical Mass, it is very friendly in terms of business.
One major concern is IP (intellectual property). I will write software for a company and it’s your secret sauce. How do I know somebody is not going to walk off with it or steal it, which happens in other countries, presumably, mostly in China. The IP laws aren’t as strict as they are in India. I would argue that language is a huge factor – everybody speaks English in India, whereas that’s more challenging in China. That’s really the main reason. it’s the size of the labor pool, the middle is competitive.
