Spiraling cost of labor in India, talent crunch and appreciating rupee (Indian currency) against US dollar have made its first dent. India’s largest information technology service provider Tata Consultancy Service (TCS) has decided to hire 5,000 employees in Mexico. TCS has already opened a software development center in Guadalajara, Mexico and will start sending around 500 men’s work to Mexico from India. Remaining 4500 jobs will be shipped in phases.
Gabriel Rozman, president of TCS in Latin America, Spain and Portugal said
“We see costs rising in India and people becoming less available. That’s why we’re going to places like Latin America, which has professionals and reasonable costs.”
TCS employs approximately 12,000 people in US. Average Mexican salary are 50% less than US.
By moving to Mexico TCS will also get a strategic gain. Since lion’s share of its revenues come from US, a near shore alternative like Mexico will enable its programmers getting back to their customers more quickly.
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