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India's TCS opens new outsourcing center in Mexico (TATA)

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OhioChick Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-18-09 12:07 PM
Original message
India's TCS opens new outsourcing center in Mexico (TATA)
Source: AP

06.18.09, 07:48 AM EDT

MUMBAI, India -- Tata Consultancy Services, India's largest outsourcing firm, has opened a new center in Queretaro, Mexico, the company said Thursday - a reflection of the growing move to diversify offshore locations.

TCS said it would hire 500 people to work at the new center, its third in Mexico since entering the country in 2003.

The company has seven centers across Latin America, in Brazil, Argentina, Uruguay, and Chile, as well as Mexico, and employs information technology consultants in 42 countries around the world.

The industry and its clients alike have been seeking to expand the number of countries they use for offshore outsourcing, and some U.S. clients are more comfortable sending work closer to home than to faraway Asia, analysts say.

India still dominates the industry, accounting for 85 percent of the $45 billion information technology services offshore market in 2008, according to Forrester Research ( FORR - news - people ).



Read more: http://www.forbes.com/feeds/ap/2009/06/18/ap6559211.html
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lovuian Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-18-09 12:09 PM
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1. turning into a monopoly
for all over the world
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peacetalksforall Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-18-09 12:52 PM
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2. All of these countries should not allow the intrusion. If they are going to accept
outsourcing from us - they should set up their own businesses. Shame on them for signing a contract with India and not doing it themselves.

Does anyhone want to challenge the belief that we are ruled and it means we will be a second to third world country with many wealthy owners ruling over us. The lords and the serfs. It's here.
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KeepItReal Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-18-09 01:34 PM
Response to Original message
3. *Who* is gonna be staffing these centers: Mexicans or Indians? The story doesn't say.
Think about it.
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OhioChick Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-18-09 02:09 PM
Response to Reply #3
4. That was my thought, as well. n/t
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Xithras Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-18-09 02:15 PM
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5. By locating in Mexico, they get to "borrow" NAFTA
NAFTA eliminated nearly all trade restrictions between the U.S., Canada, and Mexico, and goes much further than WTO anti-protectionism clauses. If the United States decided to restrict or tarriff the outsourcing of professional services to Asia, there is little that the Indian government could do about it because no treaties exist that would protect those types of services. NAFTA severely limits our ability to restrict the outsourcing of those types of services to Canada and Mexico. This hasn't been a problem in the past because the Canadian technology sector is comparatively small (though some American companies do outsource there), and the Mexican sector is practically nonexistant.

A Mexican location allows Tata to ride the coattails of NAFTA and dodge any protectionist measures we may try to implement against India.
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