{"id":2015,"date":"2007-06-08T19:29:00","date_gmt":"2007-06-08T19:29:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/is-bangalore-no-longer-a-cost-saving-location\/"},"modified":"2007-06-08T19:29:00","modified_gmt":"2007-06-08T19:29:00","slug":"is-bangalore-no-longer-a-cost-saving-location","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/","title":{"rendered":"Is Bangalore no longer a cost-saving location?"},"content":{"rendered":"

My good friend and former colleague at the Yankee Group, Arijit "Apu" Sengupta (pictured) – who is now CEO of BPO quality improvement software firm BeyondCore<\/a> – alerted me to a startup that reverse-offshored its development team from Bangalore back to the US:  <\/p>\n

\n

\u201cBangalor\"Apu\"<\/span><\/a>e wages have just been growing like crazy.<\/strong> To give you an example, there is an employee of ours who took the first 5 years of his career to get from 1% to 10% of his equivalent US counterpart. He then jumped from 10% to 20% of his US counterpart in the next 1 year. During his time with us (less than 2 years) he jumped to 55% of the US wage.  In the next few months we would have had to move him to 75% just to \u2018keep him at market. Once the salary rises to 75% of US salaries, the overhead cost differences between India and the US would overwhelm the financial viability. Consider the additional overhead of managing two offices, flying between the two centers, dealing with the cultural differences.  The costs of having two offices, which are twelve time zones apart, is significant. People in both offices frequently had conference calls at 10pm and midnight every night (as a result the office in the US didn\u2019t get started until noon sometimes or people rolled in tired). We were all traveling constantly. Development and communication moved slower due to the distance and teams.\u201d<\/span><\/em><\/p>\n<\/blockquote>\n

For more on Apu’s story, go to the CIO Magazine website<\/a><\/p>\n

<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

My good friend and former colleague at the Yankee Group, Arijit "Apu" Sengupta (pictured) – who is now CEO of…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50,95],"tags":[],"organization":[],"ppma_author":[19],"class_list":["post-2015","post","type-post","status-publish","format-standard","hentry","category-captives-and-shared-services-strategies","category-sourcing-locations"],"yoast_head":"\nIs Bangalore no longer a cost-saving location? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Bangalore no longer a cost-saving location? - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"My good friend and former colleague at the Yankee Group, Arijit "Apu" Sengupta (pictured) – who is now CEO of...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/\" \/>\n<meta property=\"og:site_name\" content=\"Horses for Sources | No Boundaries\" \/>\n<meta property=\"article:published_time\" content=\"2007-06-08T19:29:00+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.horsesforsources.com\/images\/apu.jpg\" \/>\n<meta name=\"author\" content=\"Phil Fersht\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@pfersht\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Phil Fersht\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/\",\"url\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/\",\"name\":\"Is Bangalore no longer a cost-saving location? - Horses for Sources | No Boundaries\",\"isPartOf\":{\"@id\":\"https:\/\/www.horsesforsources.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.horsesforsources.com\/images\/apu.jpg\",\"datePublished\":\"2007-06-08T19:29:00+00:00\",\"dateModified\":\"2007-06-08T19:29:00+00:00\",\"author\":{\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#primaryimage\",\"url\":\"http:\/\/www.horsesforsources.com\/images\/apu.jpg\",\"contentUrl\":\"http:\/\/www.horsesforsources.com\/images\/apu.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.horsesforsources.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Is Bangalore no longer a cost-saving location?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.horsesforsources.com\/#website\",\"url\":\"https:\/\/www.horsesforsources.com\/\",\"name\":\"Horses for Sources | No Boundaries\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.horsesforsources.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f\",\"name\":\"Phil Fersht\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/image\/86ee0c0ac2d033eed87f327162eb27f7\",\"url\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png\",\"contentUrl\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png\",\"caption\":\"Phil Fersht\"},\"description\":\"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage\",\"sameAs\":[\"http:\/\/hfsresearch.com\/team\/phil-fersht\",\"https:\/\/www.linkedin.com\/in\/pfersht\/\",\"https:\/\/x.com\/pfersht\"],\"url\":\"https:\/\/www.horsesforsources.com\/author\/phil-fherst\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Is Bangalore no longer a cost-saving location? - Horses for Sources | No Boundaries","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/","og_locale":"en_US","og_type":"article","og_title":"Is Bangalore no longer a cost-saving location? - Horses for Sources | No Boundaries","og_description":"My good friend and former colleague at the Yankee Group, Arijit "Apu" Sengupta (pictured) – who is now CEO of...","og_url":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/","og_site_name":"Horses for Sources | No Boundaries","article_published_time":"2007-06-08T19:29:00+00:00","og_image":[{"url":"http:\/\/www.horsesforsources.com\/images\/apu.jpg","type":"","width":"","height":""}],"author":"Phil Fersht","twitter_card":"summary_large_image","twitter_creator":"@pfersht","twitter_misc":{"Written by":"Phil Fersht","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/","url":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/","name":"Is Bangalore no longer a cost-saving location? - Horses for Sources | No Boundaries","isPartOf":{"@id":"https:\/\/www.horsesforsources.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#primaryimage"},"image":{"@id":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#primaryimage"},"thumbnailUrl":"http:\/\/www.horsesforsources.com\/images\/apu.jpg","datePublished":"2007-06-08T19:29:00+00:00","dateModified":"2007-06-08T19:29:00+00:00","author":{"@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f"},"breadcrumb":{"@id":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#primaryimage","url":"http:\/\/www.horsesforsources.com\/images\/apu.jpg","contentUrl":"http:\/\/www.horsesforsources.com\/images\/apu.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/www.horsesforsources.com\/is-bangalore-no-longer-a-cost-saving-location\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.horsesforsources.com\/"},{"@type":"ListItem","position":2,"name":"Is Bangalore no longer a cost-saving location?"}]},{"@type":"WebSite","@id":"https:\/\/www.horsesforsources.com\/#website","url":"https:\/\/www.horsesforsources.com\/","name":"Horses for Sources | No Boundaries","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.horsesforsources.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f","name":"Phil Fersht","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/image\/86ee0c0ac2d033eed87f327162eb27f7","url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png","contentUrl":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png","caption":"Phil Fersht"},"description":"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage","sameAs":["http:\/\/hfsresearch.com\/team\/phil-fersht","https:\/\/www.linkedin.com\/in\/pfersht\/","https:\/\/x.com\/pfersht"],"url":"https:\/\/www.horsesforsources.com\/author\/phil-fherst\/"}]}},"authors":[{"term_id":19,"user_id":3,"is_guest":0,"slug":"phil-fherst","display_name":"Phil Fersht","avatar_url":{"url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/02\/Phil-Fersht-HFS-Updated.jpg","url2x":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/02\/Phil-Fersht-HFS-Updated.jpg"},"job_title":"","first_name":"Phil","last_name":"Fersht","user_url":"http:\/\/hfsresearch.com\/team\/phil-fersht","description":"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage"}],"_links":{"self":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts\/2015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/comments?post=2015"}],"version-history":[{"count":0,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts\/2015\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/media?parent=2015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/categories?post=2015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/tags?post=2015"},{"taxonomy":"organization","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/organization?post=2015"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/ppma_author?post=2015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}