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The Indian Perspective
Published on August 14, 2004 By olikara In Current Events
Here in India we are riding on the high wave of the outsourcing boom.
And yes, there certainly does seem to be a boom. I was in Bangalore a year back before relocating to Bombay.

I used to pay Indian Rs. 7000 per month ( USD 155) for a 2 bedroom apartment and last month when I visited bangalore the rents for such an apartment was touching IR 9000 (USD 200). When I asked why, the estate agent said that a lot more people in bangalore were making more money because a lot of US( and British as well, english language seems to be the key) jobs were flowing in there.

So more people, fresh out of college were landing jobs not just writing middle/high end software but also workingin call centres doing ticket reservations for British Airwys and pursuing credit card payment defaulters in Milwaukee all sitting down in Bangalore.

What did I notice about these youngsters? Let me make a list:

1.) Most have basic college degrees. This puts them at an advantage compared to the run of the mill call centre agent in the US who would most probably have dropped out of high school. At least that's the idea I get from news articles highlighting this mismatch.

2.) They have money to splurge. An average call centre agent makes about USD 200 a month. Their fathers would be making the same. An engineer doing high end coding could make about USD 1000.
The same engineer in the US would make about USD 4000. This is where US corporations save money. Of course, at the cost of American engineers who are laid off!!

3.) Now these youngsters are extremely independent. Earlier it was unheard of that people who were 19 - 21 were staying seperate from their parents. Now many of them are on their own and the traditional family cohesive structure may be breaking down. Today a young girl could just walk out of the house knowing fuilly well that she will do well anyway.

4.) Of course welcome pizza hut, Levis, KFC, Coke and yes sexual liberation.

5.) American accents. Most of these call cantre agents will put on Western accents while speaking to their customers. But out of the office many still cling to it, and believe me, that's irritating to my ears. Listening to someone who till yesterday did not know a vowel from a consonant(and still don't) speaking like Prince Charles gets on my nerves.

Yes, much of this boom is still limited to the bigger cities like bangalore, madras, delhi and bombay but it seems to be percolating down too to smaller places where rents and wage bills are lesser.

But this is where I think the Eastern (indian, jewish, chinese) cultural importance given to education has paid off. Indian families would never tolerate that their kids drop off from college and would often push education down their throat. But I guess in the west(more so in the US) kids had their own way.

So when you have a better educated guy who demands less wages asking you for a job, who will not give it to him?
So for every 1 american engineer losing his job 3 are created here in India.

In short, a lot of people down here are having a good time.



Comments (Page 1)
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on Aug 14, 2004
I personally have very mixed views on outsourcing. You have highlighted the things that are best about it. Excellent post.

As for the issue of college you raised, in many ways, our culture is very different. In some families (mine included), staying at home with the family through college wasn't an option. It was made very clear to me that I WOULD be out of the house at 18; then I went into foster care, where I pretty much had to anyway. This means that college meant fulltime work and fulltime college; no easy task for the best student. So, maybe the parents push college harder there, but they also offer familial support for it. That's often not the case here.
on Aug 15, 2004
Very well said.
Outsourcing out of the country has led to a subtle shift in the balance of power. The funny thing is India is not having to fight for it, the Americans are giving it away.
on Aug 15, 2004

im surprised that so much sensitive information is apparently being processed outside the us.  tax data for example.

outsourcing would be seen in a much more positive light if a.) those who were relieved of their jobs in the us also owned stock in corporations that save money by shopping their work out to the lowest bidders; b.) we were permitted to shop things in as well (like pharmaceuticals which cost much less to make in india).  

if india has a highly qualified professional workforce (which they clearly do) that can be trusted to handle personal and business financial and credit data (as they are), surely they must be formulating medicine in an equally competent way?

on Aug 15, 2004
The more other countries are like the US, the better. I see outsourcing as a way of homogenizing the world. That's a good thing, because when the world is just basically one big country economically, the political world will have to follow suit. First coke, then sexual liberation, then world peace!!!
on Aug 15, 2004
>>So when you have a better educated guy who demands less wages asking you for a job, who will not give it to him? So for every 1 american engineer losing his job 3 are created here in India. In short, a lot of people down here are having a good time.>>

Meanwhile...a person in the US is looking at life through a drive through window and is trying to support his family on 1/3 of the money he used to.

A good friend of mine is from Bangalore. He came over here, got his Bachelors from Tulane, His Masters From Utah State, has an awesome job making 150,000 bucks a year, and even HE thinks outsourcing to India is a bad idea.

Have you ever stopped to think that maybe you folks could do better by doing what he did?

on Aug 15, 2004
Reply By: kingbeePosted: Sunday, August 15, 2004I'm surprised that so much sensitive information is apparently being processed outside the us. tax data for example.


That is the down side. many companies are not really thinking about how to outsource. We spoke about this in class and from what I see, outsourcing is part of the overall economy since forever. In order to keep costs low, you outsource.

The funny thing is that American consumers benefit from all of this by keeping costs down. The bad part is the jobs that are lost. I have a few articles on my Archive Links that portray the outsourcing as good from America and the economy. All this good will, if you will, comes back to America. If other countries have better lifestyles and more empowerment there is more opportunities. Travel is one immediate outcome of this.

Eventually, the cost to outsource to India will rise as people there ask for more money to preform essential services for the companies.

Anyway, I don't think outsourcing is a bad idea. It just has to be done correctly.
on Aug 15, 2004
To that I would say that many Americans live pretty well compared to their counterparts in other countries.

I just think that all this outsourcing eventually comes back to the USA in money and good relationships (not to mention world stabability... if a country can have something is a way of an economy it is less likely to become a criminal haven)
on Aug 16, 2004
The more other countries are like the US, the better. I see outsourcing as a way of homogenizing the world.

The news suggests this approach seems to be working rather better than invasion and occupation ...
on Aug 16, 2004
The news suggests this approach seems to be working rather better than invasion and occupation ...


That's how the ancient Chinese created their empire... introduce a way of life... show it is better than your old one, and you can have conformity without a bullet being fired.

Outsourcing is a fine idea as far as I am concerned... I just wish companies were honest about it... We have large telco's here who make their phone operators in India learn local wheather patterns so they can make mindless chit chat about the wheather... There are over 1 billion Indian dudes, and 260 million Americans... so in the scale of things, outsourcing is beneficial for the general population of India...

I never thought I would say this... but...

AMERICAN CORPORATIONS ROCK!!!! hehehe...

BAM!!!
on Aug 16, 2004
I can see both sides of this argument, and frankly the thing that bothers me most about this whole issue is that the Indians taking these jobs are being payed so much less than Americans in that role would be. Of course it's not a matter of them being "forced to take the job," but by being payed considerably less, they're being insulted by the company, and ensuring that equally qualified Americans can't really compete as easily.

Then there the other point, that by saving themselves money the corporations pass the savings on to Americans, so in the end it evens out, but I'm not at all convinced that the consumer, whether here or in India, really saves anything on this, and it's not just a matter of:
Corporation makes four times as much.
American professionals have a fourth as high a chance of getting a job.
Indian professional have to work for a fourth of what the acceptable wage would be if they only lived in America.

Then again, I could be wrong, I'm not exactly as informed on this issue as I should be. Maybe it is saving the consumer money, but when I think of IBM, one of the companies that I know is outsourcing their support, if not more, and I look at how horribly overpriced their computers are, I see no savings.
on Aug 16, 2004
Corporation makes four times as much.American professionals have a fourth as high a chance of getting a job.Indian professional have to work for a fourth of what the acceptable wage would be if they only lived in America.


Lord Shitzu: You are right here but remember for the Indians it still is a lot of money. Much more than the national average and of course the cost of living here is less than what it would be in the US. For e.g. in India an average cup of coffee costs Rs. 5 (USD 0.12)
on Aug 16, 2004
We have large telco's here who make their phone operators in India learn local wheather patterns so they can make mindless chit chat about the wheather...


And how do you feel listening to that pratter?
on Aug 16, 2004
b.) we were permitted to shop things in as well (like pharmaceuticals which cost much less to make in india).


kingbee: But then how would all the big American Corporation (they have branches in India that sell the same drugs cheaper) make all their billions?
on Aug 16, 2004

Those who oppose outsourcing I assume are careful not to shop at Walmart and careful to see where the products they purchase are made right?

I've met plenty of people who talk of the villainous companies that outsource jobs as they head over to Walmart in their Toyota Camry.  Apparently to some people it's only okay if THEY save money or choose foreign labor over American.

on Aug 16, 2004
I strongly oppose the way our country does outsourcing. In no way is it done for anyone's benefit but the corporations. And I watch who I do business with, believe me. We are currently a country full of anti- depressant users graduating college and being told we are lucky if we have a miniumum wage job because look at the way the rest of the world lives. If we craft a basket we are told "we are buying one from this country for a dollar instead where they work all day for a bowl of rice".
I'm very happy for you that things are improving. This is kind of a nobody wins situaton to me, like when they used to bring in the scab workers past the strke lines. The ones doing the work were trying to do the best for their families and the ones standing on the picket lines were too.
I think everybody here knows it doesn't have to be this way.
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