Australian IT anger over India outsourcing plans

The Australian IT industry, already suffering from the technology slowdown, is up in arms over the publication of a government report which urges companies to outsource work to India in order to save money.

The Department of Foreign Affairs and Trade report said significant opportunties existed for Australian firms to enhance their competitiveness through "direct investment in and outsourcing to the Indian IT sector".

"Investment in India offers Australian firms the chance to lower their software development wage costs substantially, while maintaining quality...", the report continued. So vast is the workforce that it is estimated that a further 50,000 Indian IT workers come on the market each year, providing a significant threat to workers in more established economies.

The Australian IT Workers Alliance has been fast to criticise the government report. In an article entitled, 'Why the DFAT report is a D Minus', sofware developer, Tony Healy, outlines the reasons why software development should stay 'in house':

Healy suggests that DFAT has been seduced by the aggressive marketing tactics of Indian IT firms, and that quality could suffer due to communications problems exacerbated by moving development offshore.

Healy also claims that the report was a classic piece of 'old boy' business, which is completely naive about the workings of the 'new economy'.

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