Re: Competition, Indian style (Score 1)

There is one aspect of the outsourcing to India phenomenon that is being ignored in everything I've read on the topic. That is the Indian government. The pattern has been that Indian entrepreneurs find niches that the government does not regulate and make fortunes. The next step is that the government realizes that this market is profitable, and thus needs to be regulated (ipso facto, as it were). They pass new laws "deregulating" the market (say, VOIP telephony, satellite TV, cell phones, etc.), which in reality impose regulations. Outcome: the market dies, killed by regulatory restrictions, the cost of bribes, and lack of fexibility. This has happened again and again. My prediction is that now that everyone is talking about how successful Indian businesses are in the outsourcing market, the government will soon start to impose regulations, and the growth in that enterprise will die. Look to the Phillipines, Malaysia, and Indonesia, though the governments in those countries are worse.