Originally Posted by tecsys
I understand your point of view. However, you mentioned something that explains reality more than what I could have written in my own words. You mentioned "very cheap and low quality" as adjectives to the general work that happens from India. However, I believe this is a global phenomenon. Where things are cheap, the quality is low. There have always been, there are and there will always be cheap cars, phones, clothes , shoes and so there would be services. There exists a famous statement which says "What you pay for is what you get" which proves itself here.
We are all consumers of some kind and most of us are fascinated by cars. The automobile market has $12k cars on offer as well as cars costing $300k+. Now its obvious, the $12k car won't be as comfortable as the $300k one. If I buy the $12k car and expect it to perform and give me comforts of the $300k one, I am sure most of you would call me a crazy person. But $12k cars exist because there are buyers for them but we ideally do not blame the manufacturers for the $12k car to be not like the $300k car because we know the cost we have paid cannot cover the goodies of a $300k car.
The outsourcing market is somewhat like the automotive market, there are cheap service providers because there are takers. Its my 13th year in the hosting industry and I would still have no answer if someone asks me "What to expect for a service provider who offers monthly server management for $15 a month" ? The hourly salary for any lucky unskilled person in most of the countries of the world would be more than $15. How should I expect a person to monitor my server 24x7, work on tickets, talk to the DC, talk to me on live chat for one full month in $15 and yet be 100% reliable and provide top notch quality? Its like asking a $12/year host to provide 100% uptime, 24x7 phone,email,live chat support with a 5 minutes response time.
I understand there are people who provide cheap services but if quality is the preference for the customer, I do not believe these cheap service providers will ever get any business and spoil their countries name globally. So my take on things is that quality services cannot come cheap.
You hit the nail right on the head there and it totally backs my opinion too. This is something that people continue to refuse to understand - if there isn't a market where people seek services and are prepared to pay with pennies only, there wouldn't be so many people ready to take those pennies doing minimal, low-quality work. Its simple supply and demand really.
That being said I'd like to escape generalization again and do believe there are still services out there where "low price" does not always mean "low quality". Yes, it mostly means exactly that, but not always. And web hosting is a perfect example. A widely used marketing strategy is to rely on a very cheap introductory price and paying a standard, more expensive price for renewals. There is a simple explanation for that and it lies in the host's confidence of their good quality. Introducing your services at a very affordable rate would mean that you make them more accessible to people. So when they sign up for an year, lets say, they would have the entire 12 months to freely test your services and perks. In this entire year, they have the time to build their trust and loyalty towards your company, so when renewal comes they would feel more inclined to pay more and continue with a quality service. Again, pretty rare occasion but it does happen and I, for one, am always happy to justify our pricing when potential customers ask