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Offshoring

By Andy McCue

Published: Monday 27 February 2006


Name

Michael Allen


Location

UK


Occupation

Managing Director


Comment

As someone who has studied offshore locations for 15 years and written reports on 18 different countries, I find the claims that Africa is cheaper than India or the Philippines preposterous. The fact that Merchants AKA DiData's main outsourcing business is based in South Africa may have something to do with it.

I visited SA last week and found outsourcers to be very capable but they have real issues with competitiveness.

Attrition is rising steadily, power demand is exceeding demand and there is still no effective deregulation in the telecoms market. A broadband connection will take 8 weeks to install and there are big management on costs resulting from HIV.

Come on, lets see some real evidence for these claims.



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