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Where are the Jobs Headed ??????????

Charles Hickman
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Joined: May 20, 2003
Posts: 33
http://in.rediff.com/money/2003/apr/12outsource.htm
http://www.siliconvalley.com/mld/siliconvalley/business/columnists/guest_commentary/4310498.htm
http://seattlepi.nwsource.com/venture/118086_vc18.html
Pakka Desi
Ranch Hand

Joined: Oct 11, 2002
Posts: 177
Anything that can be done cheaper will be done cheaper. Location doesn't matter. If a company does not cut its costs, its competitors will, forcing the company to either shut down or cut costs. That's reality.
Today repetitive jobs are being outsourced to humans in developing countries. It is only a matter of time when some smart a$$ competitor figures out that the same job can be done even cheaper by outsourcing from Mexico. To take it further, I wouldn't be surprised if the same jobs are returned back to the US to be handled by computers.
Applying VISA restrictions and reducing H1Bs will only increase the speed of outsourcing. So what is the solution? None. What did US do when manufaturing jobs moved offshore? NOthing. This is how it has always been. It's nothing new.


I'm just saying...it's right there!
Matt Cao
Ranch Hand

Joined: Apr 03, 2003
Posts: 715
Hi,
During the manufacturing outsourcing, there also were a big noise too. So big, that US Labor Dept created a fund to retrain American workers affected by the outsourcing companies. I remember it was two years package. But it was an half ass measure, only the worker bees could benefit the retraining, professionals well move on.
I guess the US government probably thinking professionals have something to loose if they cause trouble, but the worker bees could create Civil War or at least chaos.
Regards,
MCao
John Lee
Ranch Hand

Joined: Aug 05, 2001
Posts: 2545
hi:
i think this is the result of globalization. it is unstopable. so if you have basketball talent that you think you can make it to the nba, keep working on it by all means. with that said, things will work out for everybody. it is just matter of time. so don't worry, be happy.
SJ Adnams
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Joined: Sep 28, 2001
Posts: 925
yup, 'comparative advantage' at work in the big bad world.
Maybe I should become an accountant?
John Lee
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Joined: Aug 05, 2001
Posts: 2545
in movie "graduate", it was "plastic".
then, it is "software".
what will be the magic word now?
Paul McKenna
Ugly Redneck
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Joined: Jul 08, 2000
Posts: 1006
Its already happening as we speak. TCS and Wipro the two Indian software giants have opened up development centers in China and Eastern Europe. More and more of the work is migrating to Eastern Europe like Chezch Republic (cant spell that damn name) and Turkey.
Infact the head of Wipro was quoted complaining that India is becoming too expensive as well. Next big stop is Russia. They too have an excellent english pool and very good IT skills.


Commentary From the Sidelines of history
John Lee
Ranch Hand

Joined: Aug 05, 2001
Posts: 2545
Originally posted by Sriraj Rajaram:
Its already happening as we speak. TCS and Wipro the two Indian software giants have opened up development centers in China and Eastern Europe. More and more of the work is migrating to Eastern Europe like Chezch Republic (cant spell that damn name) and Turkey.
Infact the head of Wipro was quoted complaining that India is becoming too expensive as well. Next big stop is Russia. They too have an excellent english pool and very good IT skills.

open office in shanghai, that is true. but only the very beginning. china has twice bigger domestic market than india. but i doubt india software can do a lot in china, maybe some chinese project will outsource to india.
Matt Cao
Ranch Hand

Joined: Apr 03, 2003
Posts: 715
Hi,
How is India software won't do well in China but you predict the reversal?
Regards,
MCao
John Lee
Ranch Hand

Joined: Aug 05, 2001
Posts: 2545
first of all, china has many talent in software as well. india software industry mainly depend on outsourcing, that is only temporary. maybe last another decade, but the long term solution is to have complete own industry system. india is far away from that.
Paul McKenna
Ugly Redneck
Ranch Hand

Joined: Jul 08, 2000
Posts: 1006
You got the picture wrong. TCS and Wipro will employ Chinese to service western customers and chinese customers. They have to because of the language barrier within China.
As I said earlier.. Indians are becoming too expensive. Today a programmer earns around $5000 - $7000 per annum. The senior programmers and project managers earn $20000 per annum and every year the salaries grow by 3-5%
So the best alternative is to find a labor pool that is cheaper and employ them. There enters the Chinese and Russian markets.
John Lee
Ranch Hand

Joined: Aug 05, 2001
Posts: 2545
i am very interested to know why don't they invested the money on other industry, like: plastic, machinary, ... so india will develop faster.
Arjun Shastry
Ranch Hand

Joined: Mar 13, 2003
Posts: 1874
Originally posted by Don Liu:
i am very interested to know why don't they invested the money on other industry, like: plastic, machinary, ... so india will develop faster.

India has already invested heavily in this sector Don.Its not that every Tom,Dick in India is sitting infront of computer and coding for some outsourced project .Goverment is encouraing this industry bcos cost of investment is less and country gets good foreign exchange without investing much .What lacks is consistent basic infrastructure throughout the country.You are right in saying domestic market for software must be there for stability of software industry in any country.I don't see much outsourcing after 2/3 years.


MH
John Lee
Ranch Hand

Joined: Aug 05, 2001
Posts: 2545
Originally posted by Capablanca Kepler:
I don't see much outsourcing after 2/3 years.

well, i guess outsource will continue. when the programmers in india make the same as in usa, there won't be outsource to india, but to another country. it is the same with other industry, but with different name.
so it seems like the trend is that the labor cost will tend to be equal everywhere. but i am not sure about it. developed country will try to develop new technology and leave the sunset industry to developing country. but the diffculty of developing new technology is bigger and bigger, as there is less and less room for imagination. the best strategy seems to be the all-around one. but i guess i am talking about the long term thing. one person's life is too short.
J. Yan
Ranch Hand

Joined: Jun 14, 2002
Posts: 34
Originally posted by Don Liu:

open office in shanghai, that is true. but only the very beginning. china has twice bigger domestic market than india. but i doubt india software can do a lot in china, maybe some chinese project will outsource to india.

1. First of all, any legal investment to China is greatly welcomed, no matter it's from US, Japan, Western European countries, or countries like India or Vietnam etc, and no matter it's for which business. It's good for Chinese economy. That's why China already surpassed US as #1 in term of foreign investment last year.
2. Some Chinese companies already outsourced projects to India years ago. Huawei is a good example here.
China's Huawei to Establish New R&D Center in Bangalore
Huawei to double Indian investment
3. Those development centers/offices opened by Indian companies are just a symbol that they entered Chinese market. They actually haven't done too much since opening. I heard another story saying that Indian companies wanted to co-operate with Chinese companies to enter Japanese market, which they alone failed to achieve in the past several years, due to language and culture difficulties.
4. Indian companies opening business in China should mainly aim to Chinese domestic market, just like what most major IT companies in the world are struggling to do. India has more than 1 billion population, and the software business is one of a few industries they can successfully make money, which means they also face great employment pressure that will drive their salary down sooner or later (or maybe already).
[ May 30, 2003: Message edited by: J. Yan ]
 
Don't get me started about those stupid light bulbs.
 
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