I may sound harsh, but the reality is different.

1. Committment, motivation, and Security:

When outsourcing started, it was really a new thing for them. Now it is a highly poisonous environment for many. I mean look at the way Nortel sold its optical unit, Lucent and Alcatel merged, so also Nokia and Siemens. If you ever visit their place, you will find employees to be highly insecure. If you are insecure you will have a motivation to seek out and low committment.

2. Competency loss in the US:

Well, it is there. Normally people who have built the product will know more than any other ones. But then as I said business is not for doing business, it is solely for profit – many times greed. Recent fall of Lehman is a buring example.

So when you have outsourced, it is bound to affect your cometency – read domain area. Others like lanuages in Java et al, the competency is the same. In the current scenario a lot of domain expertise is also lost.

Hence you see any one worth his salt is setting up a development center in India.

3. What to outsource?

I agree here. But then you have to accept the fact that many companies including the most innovative ones like Yahoo and Apple have also outsourced the core work. Reason – money only.

I mean if you a launch a product, 1 in 10 succeeds. So, what the heck? You can easily send it offshore. Only thing you need to see is whether the product which is really your golden goose can stay with you.

4. Cost:

In no way there will be cost advantage. People will stick even in the long run. They know it and so also the people who have outsourced from India. It is here to stay. You just can not compare the salary of Indian IT professionals with say someone from Northern America. If you look at the IT professionals with over 10 years of experience and that of rookie in the US, there is a still a huge gap.

However, it is agreed that you need to check for the cost. SO what? You are in business. Are not you???

5. Attrition:

Agreed.

Reason for attrition is not purely on skills, it is of many types.

6. Innovation and Outsourcing:

Have you heard of any product company from Bangalore? –> Many. If you are from India, yes you can check on your own and see that many, though the strength is not much high.

How many patents were filed from India in FY08 ? – Many, though not comparable with the US.

There is no question about the quality of resource from Asia. They might be even better, but does the environment in that country or that regional office foster the kind of innovative environment that the company needs? – Read the last one.

Is it easy to replicate the same model there ? – How come all these companies like MS, YHOO, GOOG are here and doing innovative work.

7. Evolution:

It is purely a cost playing game. I do not know Oracle. But excuse me, it is not the high sounding IT professionals from India who have migrated to the US or high caliber IT companies MNC in India, it is actually the people from companies like Infy and Wipro who have made outsourcing a must and revolution-evolution.

Bottomline:

People who are good with low cost will always be attactive. In the coming years, many high fliers from India who have migragated to the US for a better living will come back to India and start claiming that we are son of the soil. Yes, you are – but then buddy you are opportunistic son of the soil!!!

Sitting in the comfort of US (standard of living is very high there) and writing stories look attractive, but having hands dirty is an altogther different matter.

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