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Wednesday, January 26, 2005

Two Sides of Outsourcing

MIT's Technology Review describes the two sides of outsourcing. The article asks, with so many Silicon Valley start-ups, engineers, and venture capitalists tracing their roots to India, why doesn't India have a booming high-tech industry of it's own. Some speculate that India's outsoursing industry is too busy serving the needs of its well paying foreign clients that they don't have the time or capital to develop their own technology. However, outsourcing can have indirect benefits. The article points to the experience of Ittiam Systems. India's outsourcing experience gives people confidence and experience to venture out on their own and is gradually changing India's culture to where entrepreneurs are no longer viewed as loners who couldn’t hold down regular jobs.

Speaking of India and outsourcing: Peter McLaughlin will be chairing the "Competition in Licensing Models" forum at the CLA First International Asian Conference in Bangalore, India.

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