Will jobs move back to US from India?

20 Oct. 2007

On October 30, Cisco chairman John Chambers will be in Bangalore to unveil the San Jose-based company's $50 million campus that sprawls across 14 acres.

The integrated high-tech facility will be the new home for 3,000 Indian workers across R&D, IT, sales and customer support teams.

Compare this scenario with media reports over the summer that some Silicon Valley companies were starting to pull jobs back from Bangalore to the US.

The Wall Street Journal wrote on July 4 that firms such as Riya of San Mateo, Kana Software of Menlo Park and Teneros of Mountain Lakes have wound up their Indian operations and are moving engineers to the US, largely because of frustration over rising wages for Indian engineers and difficulties in retaining them.

Cisco and Riya present contrasting faces of the outsourcing business in India today. While large companies like Cisco, IBM and Accenture are expanding their operations; smaller Silicon Valley startups are finding it increasingly difficult to sustain their operations.

Outsourcing jobs to India is becoming difficult and expensive. Since January, the rupee has gained more than 11% against the dollar, eroding the cost advantage of Indian offshoring firms.

These firms now face wage inflation, high workforce attrition, paucity of talent and increased operational costs. Profits are down and the stock prices of Indian IT companies are falling; for the first nine months of this year while the Sensex rose by 32.47%, the BSE IT index fell by 13.08%.

http://economictimes.indiatimes.com/Will_jobs_move_back_to_US_from_India/articleshow/2475757.cms

Compare these two graphs.....

http://www.x-rates.com/d/INR/USD/graph120.html

http://www.x-rates.com/d/MXN/USD/graph30.html

He keeps wanting to send the jobs of the people that work for me to an Indian company. Several times over the last three years he has brought up the subject. Each time I have taken his request investigated it and researched other companies that have outsourced this type of work to India. Each time I have reported back to the manager with recommendations to keep our jobs here.
I have supported each time with evidence of poor quality work, difficulties in communicating needs and changes.
To date, I have successfully kept the outsourcing monster at bay. I am just waiting for this fad among high level management to end and we can get back to producing quality work in America with American pride.

Maybe outsourcing is a good idea. There are probably many Indian managers well qualified to be general manager who would do the job for 1/4 the salary, perks, and benes. Perhaps the CEO or the company board would like to see a cost comparison on how much they could save if they outsourced the GM's job.

Every time that comes up, I hear those working for me saying maybe he needs to be outsourced.

as someone who regularly deals with overseas crap I cannot tell you how much they S U C K

otherwise, they'll just dump India and goto, say, Mexico, as they're already starting to do because the price of Indian labor is increasing.

It is called "liquidation of labor".

..the powers that be said if India didn't pay its Enron bills (Dabhol plant) it would put an end to foreign investment in the future.

The powers that be.. were acting.

And that is how foreign nation-building works.

Who really paid to upgrade India's energy and telecom infrastructure to allow outsourcing to begin with?

The ordinary citizen did.

Who will pay for Countrywide's gift to the minorities?

The middle. Because the middle is the biggest threat to the top.

customer service you got from outsourcing? They don't care. Given that fact and the fact that they're producing less and less of what I actually buy and a bunch of junk that I refuse to spend my money on I find myself buying less and less consumer goods.