Ohio Governor bans outsourcing; India Inc. cries foul

[kprasad]

Re: Ohio Governor bans outsourcing; India Inc. cries foul

@GoodMD2B

Who said that I have at any point ever been engaged in employing or am currently in a process of retaining employments of such people, another instance of smart Indian with absolute scarcity of sagacity to correctly impart my post(s).

I would like to rectify your misconstrued pertaining to the legal minimum wages in my state, for the record it is $7.21 per hour, thus, if someone was to be employed for the exact state minimum of $7.21 they would end up getting paid exactly $13843.20 per year, hence, it is quite generous of employer to round off their salary to $14000.00 per year and that, would be a whopping $156.80 (of course for an Indian) more than the state minimum, which I believe is fair enough for the people of such an ignoble degree of competence.

A couple of things first: The Department of Labor has a prevailing wage requirement. So, anyone working in the US with a H1-B, or any other temporary work visa, must be paid the prevailing wage for the profession. Unless you’re in the janitorial services and are mistaking illegal Mexican immigrants for Indians, you’re simply wrong. So, your postulation is, simply, grossly inaccurate. That it demonstrates a lack of knowledge on the subject matter is all together another thing.

Second: The decision was spurred by an American company with operations South of the US border. Indian companies may fuss and howl, but they do that just because they have to. Outsourcing by the governments of various states is very small. Indian companies are largely in the private industry, where they love the ROI on outsourcing.

Third: Indian companies are savvy. When they bid on contracts from regional governments, they make sure the work is being done in the US, with US staff, and often within the state. What’s allows them, Indian companies, to provide a better value is their capitalization. Because they derive most of their revenue from the private sector, where outsourcing is prevalent, they can provide a tremendous value to the governments. That is, because all their infrastructure costs are much lower, they can charge a much lower rate.

@Kudlaguy

Nobody denies that outsourcing to India would stop the moment these companies find a cheaper alternative who can provide good quality work. It is not because the western companies have any love for India are they outsourcing to India. It makes perfect business sense for them to do so.

This is incorrect. India isn’t just a point of outsourcing, like China isn’t simply a point of manufacturing. India is a growing economy. Not as fast as China, but growing very fast nonetheless. A market also exists in India. It’s not uncommon to see McKinsey & Company or Perot systems getting deals in India. The value proposition of India isn’t short term cost cutting, but long term profit generating.