I manage companies web sites (develop from scratch or upgrades etc.). I outsource the work. I submit a lot of RFP's. The majority of responses come from companies in India, UK, US and Eastern Europe. I am wondering why the prices from India are 2 or 3 times as much as the others? Are the Indian companies monitoring competitor pricing?

I know that India is booming but the higher prices will make India lose its competitive advantage.

Any explanations?

Hello GossaDRW,

I totally disagree to you in regards with the pricing.

It really make me laugh that the outsource company in India charged you higher then a company in UK / US. Reading to your replies it seems that you are a web hosting company and outsourcing the support.

Please let me know in case I can assist you here for anything:)

Thank you.

there is no response as of now.

let me explain the case further - Indian IT Industries covers almost everything in the Industry.   Some IT Industries are having expertise in Financials, Banking, Insurance, etc., (Infy, TCS, 3i Info Tech, etc.,) where they are very strong.  Some are strong in BPO , Internet/Web, connectioned activities (like Sify, TCS, etc.,); some are concentrating Hardware, High tech. enginneering/Auto design,, etc., (like Wipro, HCL, etc., )  Just I gave very few examples.   If segregation is required, at micro level, I can give input.

If one approach a particular IT Industry for a particualar job, they are Industry leaders and they can give highly competitive rate (which will be 60% to 70% lowers than their peers.

Now that Rupee is weakeniong (Rupee just lost about 5% in comparison with US dollars), Indian IT industries will be much cheaper than International charges.

In regard to other cheaper employees world like China etc., they m,ay be far behind from India because )1) English Language (2) understanding Law, and work flow management - Since Indias way of working came straight from Engilsh for Indian to work with software application is easier than others and hence cost advantage.

Mr. GossaDRW may be correct to some extent if he is concerened about BPO -ITES functions more associated with hardwares delivery - there Indian IT Industry is less competitive because payout in IT Industry professional is bit costly - for hardwares Indian IT Industry has to depend upon developed Western Country.  Still they are equal to their peers in their land and ceertainly not on higher side.

secondly. Indian IT Industry concentrates on  long term contract say between 3 to 5 years and mostly on high value Contracts.    Small players (don't ask for names) in India go in for short terms contract, - naturally if their costs is added up with mobilisation and demobilisation, down sizing  overheads -  their cost is likely to be on higher side for short term contract.

if Mr. GossaDRW spell out his exact area of problem, this community can certainly help to get a good and competitive vendor.

As far as BPO, ITES, and short term contract, Indian IT Industry rates will be equal to other peers and Indian IT Industry may not be cheap.

if any one have similar problem, I can provide them information (through eTI) - after all Materials Management is my profession for over a period of 3 decades - handled several thirillion worth of Contracts includes every goods/services in walf of life (SPACE PROGRAMME is an unique union of all sciences)