If you follow the story out of India this morning, you’ll see the seed of what I predict will be known as the great offshoring crash of 2009.
No doubt, authorities there will spin the Satyam crash as a one-man Indian Enron, but make no mistake: This will sting every player – investors and western companies dependent on offshore – like a Sambol #5 Hot Curry on a Lake Wobegon palate.
The real cause of the offshore crash is that you can’t keep a good man down. It’s a myth that you can develop and RETAIN a highly skilled labor pool at slave wages in a free society. Priti and Koomar won’t stay working for you at $1/hour if they are free to go down the street and work for $10 or $20 or $30.
Consequences for staffing: 1) look for the big companies – the Targets, the Dells – to move their support and development centers back to their home countries and handle the tasks better with a fraction of the staff.