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Architexturez > Mail > [ In-Enaction ] offshoring: AIA Figures, India

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+  From: "Architexturez." <interface.services@xxxxxxxxxxxxxxxxx>
+  Date: Tue, 27 Mar 2007 11:27:30 +0530
Cadforce is one of a growing number of companies jumping into the business. The $29 billion U.S. architecture industry ships about $100 million in work abroad each year, Cadforce estimates. Some 20% of U.S. firms say they are offshoring, according to a survey by Harvard University and the American Institute of Architects (AIA), while an additional 30% are considering doing so. "Clients are demanding shorter and shorter turnarounds, smaller fees, and better details," says Harvard doctoral student David del Villar, who helped lead the study.

While the work isn't glamorous, many Indian architects say it's a great opportunity. Rather than developing complete designs, architects in these outsourcing shops tend to handle tasks such as turning schematic drawings into blueprints or making sure doors and pipes are aligned. These are essential jobs, but they're tedious and can take up 60% of the time spent designing a building. Nonetheless, 25-year-old Aditi Sengupta jumped at the opportunity to join Cadforce. "It's a chance to work with more space and nicer materials," she says.

Digitization is one big force driving the trend. More architectural firms are adopting sophisticated computer tools that allow them to render entire buildings in 3D, simulate stress tests, and track all construction materials. That makes it easier to work remotely—and requires tech skills that can be hard to find in the U.S. "The challenge isn't cost. It's understanding the processes and systems," says Michael Jansen, CEO of Satellier, a New Delhi-based group with 300 staffers doing work for half of the top 30 U.S. architecture firms.

JUST FOR NOW?
Not everyone is convinced the future of architecture lies offshore. AIA Chief Economist Kermit Baker thinks the outsourcing surge is largely the result of a cyclical talent crunch. He notes that the pay gap between U.S. and Indian architects isn't nearly as wide as in, say, software programming. Many American architects with 10 or 15 years of experience earn up to $60,000 annually—about four times what Indians take home. That compares with salary differentials of 8 to 10 times in software. "If the job market softens, there will be a lot less incentive to outsource," Baker predicts.


cont'd....
http://www.businessweek.com/magazine/content/07_14/b4028055.htm?chan=innovation_architecture_architecture


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