India and China graduate a lot more engineers every year than in all of Latin America combined. Isn’t that an advantage?

This is true given the sheer size of those countries, even after taking into account the different definitions of what an “engineering” degree is.

However, India and, in particular, China also have a lot of internal demand for these engineers.  This means that offshore vendors will have a heck of a time finding and retaining experienced engineers and project managers.

India’s outsourcing industry has doubled every year for the last four years and the unfortunate side-effect of that is extremely high turnover as offshoring companies compete for experienced people.  Also, the rise in salaries and the valuation of the rupee vs the dollar has made India more expensive.

Besides, the critical success factor for software product development is proximity in time, culture, and geography.  Having access to a large number of engineers is a moot point if they are 10 or more time zones away and half a world apart.

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