this article explains how high paying jobs are being outsourced
will it last against domestic opposition?
http://www.time.com/time/magazine/article/0,9171,1101030804-471198,00.html
It is not whether it would last. It already happening and will continue to happen. THe question is what is the impact on the US economy ala manuf.
THe biggest risk is japan style deflation. Americans are smarter though...we will reinvent ourselves once again.
globalization is the future
this good for unemplaid gradute India but poor felow here Amricka what they do? big prolem. how solving? whare balanced?
"In an economy that has shed 2 million jobs over two years, he contends, the 200,000 that have moved overseas are less significant than the potential for cost savings and strategic growth. But he concedes that "when you're a laid-off employee who can't find a job, that's hard to understand."]
I have an amrecan friend who's brother is a Project Manager in a company and he is working on few different projects. Yesterday we were talking about job market and he told me about his brother experience working with one of the indian based company.
He said first of it was so hard for him to understand the accent and on top of that the project supose to be get done in 6 months but its been a year and still not finished and the cost keep climbing up n up. And he said the work quality was so poor they were surprised to see the way they did coding and all that kinda stuff, it was so poor that they had to finally cancel the deal.
^ Yeah right? Tell your brother's friend to stop outsourcing to mom and pop shops and maybe this won't happen...if it did? No country offers a better cost vis-a-vis value proposition for IT and ITES than INdia. Simple as that.
[QUOTE]
*Originally posted by Matsui: *
^ Yeah right? Tell your brother's friend to stop outsourcing to mom and pop shops and maybe this won't happen...if it did? No country offers a better cost vis-a-vis value proposition for IT and ITES than INdia. Simple as that.
[/QUOTE]
2 Questions..related to the above.
-The talent, we know its there, but is it exclusively in IIT or are there other schools in India?
- Speaking as Pakistani, how did Indians set up these outsoucing deals? I mean the Indian-American community powerhouse comes to mind, and the Pak- Americans are much weaker in that regard.
Basically what I am looking for is a general business model. I am sure Infosys and other major brands have name recog, however can a XYZ outfit based out Pakistan, gain a foothold in the market?
I have serious concerns over this matter, not really vis-vis India, but rather in terms of employing similar quality and talented Pakistani youngsters. I think if Pak IT could take off, it would have many positive ramifications for the people as well as the culture/economic of the country.
RF, IIT's take the best of the best. Look in terms of volumes of gradutes that cannit get into IIT's and go to other schools. There are huge pools of smart, english speaking, gradutes that have now avenues due to cost arbitrage factors and opening of the financial and telecom sectors. Simple administrative and infrastructure investment form the Gov't in the last 10 yrs or so has yielded a lead sector for export services.
Here is a mail I got today...impact of jobs going offshore...
India's Blessed Labor
Tue Aug 5, 3:58 PM ET
By Matt Richey
You hear more about it every day: India is becoming a force in the white-collar labor market. Just today, Forbes highlighted this trend in "Blue-Chip Companies Send Jobs to India." Some of the big names hiring more in India include General Electric (NYSE: GE - News), Microsoft (Nasdaq: MSFT - News), IBM (NYSE: IBM - News), Oracle (Nasdaq: ORCL - News), Bank of America (NYSE: BAC - News), and JP Morgan Chase (NYSE: JPM - News).
Just as China has become the de facto home of low-cost manufacturing, so India is becoming the site for low-cost, highly skilled services, including software programming, engineering, and accounting. As detailed by Forbes, India's professionals are well-educated, English-speaking, and willing to work for a fraction of the salary demanded by comparable American professionals.
So is India a "threat to American jobs"? Should American white-collar professionals be scared? Should you be frightened as an investor concerned about the American economy?
Respectively, the answers are: yes, maybe, and no. Only on the surface can India's low-cost labor be considered a "threat." Yes, in the short run, some American professionals will lose their jobs, and their plight cannot be overlooked. At the same time, the long-run efficiency gains of shifting work to India will result in not less, but more U.S. employment.
That lost jobs, through productivity gains, can result in higher long-run employment is one of the fundamentally misunderstood paradoxes of economics. The misunderstanding dates back to the Industrial Revolution when English stocking knitters rioted upon introduction of the new stocking frame machinery that made obsolete their manual labor. If only those rioters had realized that within a century, employment in the stocking industry would expand by one hundred fold.
Economist and author Henry Hazlitt does a brilliant job explaining this phenomenon in his classic book, Economics in One Lesson. His insights on "the curse of machinery" apply equally well to what might be perceived as "the curse of low-cost jobs in India." Consider Hazlitt's example of a clothing manufacturer who introduces labor-saving machinery:
After the machine has produced economies sufficient to offset its cost, the clothing manufacturer has more profits than before. ... At this point, it may seem, labor has suffered a net loss of employment, while it is only the manufacturer, the capitalist, who has gained. But it is precisely out of these extra profits that the subsequent social gains must come. The manufacturer must use these extra profits in at least one of three ways, and possibly he will use part of them in all three: 1) he will use the extra profits to expand his operations by buying more machines to make more coats; or, 2) he will invest the extra profits in some other industry; or, 3) he will spend the extra profits on increasing his own consumption. Whichever of these three courses he takes, he will increase employment. [emphasis mine]
So you see it all comes down to having a right understanding of corporate profits. Those profits that are so often deemed evil are actually the only true engine of job creation.
As was the case with Hazlitt's hypothetical clothing manufacturer, Corporate America's hiring foray into India will ultimately have the same impact: higher U.S. employment. Yes, there will be dislocated American professionals in the short-run, and their needs should be tended to. But the answer isn't a government blockade against hiring in India.
It would be the height of short-sighted folly to think of India's low-cost service sector as anything but a blessing. Out of the increased profits that result, American companies will have the resources to expand elsewhere and thereby create more U.S. jobs
OH and RF. In the S&T and Pak Affiars Fora, we discussed the business development aspect. Check it out. In short...marketing of "India Inc."
[QUOTE]
*Originally posted by RajputFury: *
-The talent, we know its there, but is it exclusively in IIT or are there other schools in India?
[/QUOTE]
RF, Here is a list of top Engineering schools in India :-
- IITs (7 of them)
- University of Roorkee, Roorkee
- BITS Pilani
- BIT Mesra
- Delhi College of Engg.
- Anna University, Chennai
- REC Trichi
Apart from above we have many RECs (Regional Engineering College) in many cities which are really good.
Thats good stuff :k:
India has done an excellent job..although in the political realm I would give more credit to the decentralization of the Indian states and the liberalization of the economy. Andhra has been the Indian leader in this aspect.
[QUOTE]
*Originally posted by Matsui: *
OH and RF. In the S&T and Pak Affiars Fora, we discussed the business development aspect. Check it out. In short...marketing of "India Inc."
[/QUOTE]
Will do..Apologies for repeating the same thing, mustve missed that discussion.
[QUOTE]
*Originally posted by Asif_k: *
RF, Here is a list of top Engineering schools in India :-
- IITs (7 of them)
- University of Roorkee, Roorkee
- BITS Pilani
- BIT Mesra
- Delhi College of Engg.
- Anna University, Chennai
- REC Trichi
Apart from above we have many RECs (Regional Engineering College) in many cities which are really good.
[/QUOTE]
Nice. Asif, the engineering standards are bot limited to the IITs then? Interesting, perhaps it can be duplicated in Pakistan.
Actually there are a lot of people who are moving their shops to Russia and Indonesia. Companies are getting cheaper hourly rates in Russia and better quality code and also the language barriers are not as much of a problem. I know some IT shops in the dfw area that are doing that. I think in India if you want good quality code, the hourly rates are much much higher.
As far as decentralization of the Indian States goes - It's not very different from what we had in the 70s and 80s. Infact most of the credit goes to the liberal economic policies launched by Narsimha Rao Govt in 1991. And it's not limited to Andhra only There are other states like Karnataka, Tamilnadu, Delhi and Maharashtra etc which are doing extremely well.
Asif, I am not sure if Rao gets the credit. It is more Manmohan singh, montek singh ahluwalia and Chidambram. Secndly, the decentralization of power and economics happened not in the 80's but after 1996 election. Infact, since the BJP has been in power there has been more decentralization of economic and political processes in India.
Matsui yaar - Ofcourse the credit goes to the trio of Manmohan Singh (Finance), Chidambaram (Commerce Ministry) and Montek Singh (FICCI) were the ones responsible for it and Rao was the PM at that time and that's why I said Rao's Govt.
As for the decentralization process, Well it's a long gradual process which started with the Panchayati Raj bill by Rajiv Gandhi in the 80s and then sometime in 91-92 Rao's govt took it furthur and gave more powers to states and municipal bodies and BJP govt has continued that process. And now after almost a decade we are starting to see the benefits of it.
Don't forget how inexpensive (relatively speaking) college was
[QUOTE]
*Originally posted by Matsui: *
^ Yeah right? Tell your brother's friend to stop outsourcing to mom and pop shops and maybe this won't happen...if it did? No country offers a better cost vis-a-vis value proposition for IT and ITES than INdia. Simple as that.
[/QUOTE]
My brother's friend? You on dasai cola again dude?