Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The issue is as you get a middle class those workers in india will begin demand higher wages thus losing the appeal of us outsourcing there
That has been the case for years. I have experienced that first hand, having to hire software engineers for our (now two) office in India. But this (one of the largest corporations in the USA... top ten actually) prefers that over hiring here. I was blatantly told to accept even less qualified candidates if we don't find them meeting our minimum specified qualifications. This, after having told my boss that I would rather have two at home than nine in India and largely because of inconvenience to our customers and for me managing projects. But those cries, and the increasing wages there, fell on deaf ears. Pretty much every such job has been moved to India now (hiring freeze here was implemented in 2002, and lately, only contracts are allowed). Thousands have been hired there. Its a good thing I don't have to deal with that mess anymore. On the bright side, it was nice to take a paid trip every once in a while.
BUT, higher wages aren't discouraging the fact. A greater issue is turnover/retention. No matter what, lower wages will continue to trump wages here and regardless of tax cuts (unless they are made conditional, which may help a little but not enough). Then there is a matter of qualified personnel. At this very time, I see SIX applications in our break room for H1-B visa as required by the labor department. We have these jobs posted online, and on our company website. We're still not finding decent candidates which is surprising considering the employment issue.
That has been the case for years. I have experienced that first hand, having to hire software engineers for our (now two) office in India. But this (one of the largest corporations in the USA... top ten actually) prefers that over hiring here. I was blatantly told to accept even less qualified candidates if we don't find them meeting our minimum specified qualifications. This, after having told my boss that I would rather have two at home than nine in India and largely because of inconvenience to our customers and for me managing projects. But those cries, and the increasing wages there, fell on deaf ears. Pretty much every such job has been moved to India now (hiring freeze here was implemented in 2002, and lately, only contracts are allowed). Thousands have been hired there. Its a good thing I don't have to deal with that mess anymore. On the bright side, it was nice to take a paid trip every once in a while.
BUT, higher wages aren't discouraging the fact. A greater issue is turnover/retention. No matter what, lower wages will continue to trump wages here and regardless of tax cuts (unless they are made conditional, which may help a little but not enough). Then there is a matter of qualified personnel. At this very time, I see SIX applications in our break room for H1-B visa as required by the labor department. We have these jobs posted online, and on our company website. We're still not finding decent candidates which is surprising considering the employment issue.
Hey Einstein I take it you are in IT? I have a Business Information Systems degree from a german college and work in America for a few years. All 4 years in Germany our professors told us not to bother to be to much of a code monkey. They told and taught us to be great Architects and writing concepts instead of actually programming software. They told us the implementing will be made in India or Eastern Europe. Those people work for a quarter of our wage they said. It really was true. These days I'm only analyzing business processes and try to convert them in a good software architecture. Those concepts I write are send to India were the implementing is done. I barely do any programming these days.
Hey Einstein when I take it you are in IT. I have a Business Information Systems degree from a german college and work in America for a few years. All 4 years in Germany our professors told us not to bother to be to much of a code monkey. They told and taught us to be great Architects and writing concepts instead of actually programming software. They told us the implementing will be made in India or Eastern Europe. Those people work for a quarter of our wage they said. It really was true. These days I'm only working on business processes and try to convert them in a good software architecture. Those concepts I write are send to India were the implementing is done. I barely do any programming these days.
That is in part true, but not for those reasons. But that India has a big pool from which you can find pretty much any kind of qualification, be it systems architecture, programming at the lowest level or you name it. Back in the early 90s, as an engineering student (my major is Artificial Intelligence), we collaborated with facilities in India (mostly the Indian Institute of Technology in Bombay). I still have a few friends there who I met a few months ago during a visit.
I see a bit of dilution of talent compared to my personal experiences from 20 years ago, but I think that is in part due to the demand India is dealing with. Consequently, there is also a significant (and very noticeable) rise of the middle class. So while one may dwell on comparing "per capita income", I would say, that is a wrong way to go about it because fewer dollars go farther in India.
Having said that, I think suggesting or even figuring out that India would have overtaken the USA and especially China would be as much a stretch as us calling ourselves the wealthiest nation in the world.
Well, you (and they) can thank the American CEOs for giving our I.T. jobs to India and our manufacturing jobs to China.
"By 2050, India will overtake the United States and China to become the world’s largest economy, according to the 2012 Wealth Report produced by Citi Private Bank and Knight Frank, an international property consultancy.
The report forecasts China as taking over the U.S. by 2020."
When has job ever been yours to give away to anyone? The job is created by a company, they have worked out that its less expensive to employ people in India - its not your job, its never your job. You don't have a right to a particular job, you need to compete against others for the job. Just like you find the cheapest things to buy, why would a organisation whose goal is deliver money to its shareholders choose to spend more than it needs?
Besides as the standard of living increases in India and China then the wage rates will be equal - then we will all be on a level playing field, nothing to complain about.
Besides as the standard of living increases in India and China then the wage rates will be equal - then we will all be on a level playing field, nothing to complain about.
The cost of living ain't going to be same. It will only happen if we go down enough. Those countries are stocked with human resources, who are also mostly debt free. Or, if they adopt American practices (can't speak for China, but India appears to be leaning a bit that way, however).
So you don't think that India is a cost-effective outsourcing opportunity for IT-companies because they only charge one quarter of a salary of an american or european IT-specialist? I think cost is the main factor here.
So you don't think that India is a cost-effective outsourcing opportunity for IT-companies because they only charge one quarter of a salary of an american or european IT-specialist? I think cost is the main factor here.
Cost is a part of it, but so is availability of the resource. There are countries that would be cheaper than India, but we don't go there because of that resource problem. Infrastructure is also important.
India is easily the most disgusting country on earth, so it is far too early to be making such predictions.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
