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Erran Carmel - It will vary by case. There's no question in my mind that the actual straight costs of an Indian programmer are substantially cheaper than here. Yes, there's a lot of overhead associated with doing a project in India. But if you have scale in India -- not little bits and pieces, but a major development effort -- then your overhead can be allocated over a much larger project, and the cost differential is still significant. Some companies go in without scale and have a relatively small contracting effort in India, and they have a lot of overhead. They don't realize substantial cost savings.

It will vary by case. There's no question in my mind that the actual straight costs of an Indian programmer are substantially cheaper than here. Yes, there's a lot of overhead associated with doing a project in India. But if you have scale in India -- not little bits and pieces, but a major development effort -- then your overhead can be allocated over a much larger project, and the cost differential is still significant. Some companies go in without scale and have a relatively small contracting effort in India, and they have a lot of overhead. They don't realize substantial cost savings.

Erran Carmel
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