Seriously, these back of the envelope calculations should be discouraged. In what sense did the writer say 1:6 and 1:3??
The dollar to rupee rates are 1:40 and the per annum salary for a fresher could be $60000 : $6000 (US : India) so 1:10 and the cost of benefits are far higehr in US. the Cost of living is far cheaper in India.
So i guess at the present inflation and salary hikes we could go about the next 50-80 years unless something drastic happens.
Yes eventually it may turn the other way round when india would be costlier than US, then Indian firms would outsource to US to cut costs!!
India will be IT services giant forever . it is a number game . nobody can match india's prowess . it is not about cheap labour . it is about availability of huge talent pool . both indian IT companies and foreign clients have to bear the cost of attrion and salary inflation. no countyr can match the supply of india's talent pool
RE:BULL STUFF
by subhasis ray on Mar 05, 2008 11:25 PM
this is what is going to happen after 2015 which the author didn't mention...india will turn into a innovation & product based economy..how?? innovation cannot happen if the country doesnt produce enough masters n phds and if the country doesnt have enough good univs..if india keeps on growing at 8.5% till 2015 then it would have alomst become a developed economy...so then there will be reverse brain drain and the same indians who innovate new pruducts in US will come back home and innovate here n ppl will stop going to US for phds...hence chill!!!
RE:BULL STUFF
by on Mar 06, 2008 05:47 PM
EXACTLY! The single biggest factor keeping India from growing its economy is the ANTI-innovation educational system in place (which has, unfortunately, been exported to other South Asian more-or-less-English-speaking countries like Singapore and Malaysia). I'm a technical consultant in Singapore and deal with a couple of clients whose IT departments are mostly imported Indians (as opposed to Singaporean Indians, who generally see their advantage and work to maximize it). Trying to get any of these folks - and I'm talking about guys (very, very few women among the imports) with "B.S." and "M.S." degrees to come up with creative solutions to problems is like pulling hen's teeth. With a pliers. Without causing collateral damage to yourself or the hen.
Do the math; they're making a big deal out of 4 million IT workers who produce a godawfully out-of-proportion contribution to the economy. My understanding, dealing with people coming out of that system over the last 15-20 years, is that the main limiter besides the can't-think mentality is simple language skills. There are hundreds of different languages in India, and you're far more likely to meet a guy who speaks four or five Indian languages than you are to find someone who's fluent and literate in English, Chinese, Russian, French or Japanese - let alone all five. This poses a serious challenge when you're asking 4 million people to bring a nation of 1,130 million people into something within shouting range of the 21st centur
offshoring to India used to be at least 1:6. Today, it is at best 1:3
Today young grads out of college in US get something 55k $ whereas our kids here get 20-25 k per month (average campus). Compare the ratio It is 1:8. same is the case with experienced fellows. The auther is living in fools paradise
RE:Wrong facts
by Baishakh Mishra on Mar 06, 2008 02:47 AM
But someone here with 4 yrs of exp got 72K, but in Inida get Rs 10 Lakh. So that makes the ratio 1:3.
Outsourcing is going to remain for quite some more time. There is no question about that. But if Indian IT companies really are looking at growth, they need to shift from being pure 'service' companies, to a mix of 'service' and 'product' companies or even just to be 'product' companies.
Agreeably there is a lot of risk in being a 'Product' company, the initial investment in R&D is huge. But the potential benefits are huge as well.
I have been working in the IT industry in China for the past 3-4 years, and though the number of IT companies in China is far lower than that of India, the ratio of 'Product' companies to 'Service' companies is totally different from what it is in India.
For India to be a world leader in the IT industry, we need to redefine our vision and our goals. Its a lot of hard work, but the long term benefits are far greater.
RE:Outsourcing a bad concept
by on Mar 06, 2008 05:52 PM
Cui bono, then? Obviously, somebody benefits, or companies wouldn't still be throwing money at it; if nobody benefited from outsourcing to India, you wouldn't have VC firms asking entrepreneurs on their first meeting what their "India strategy" is. SOMEBODY benefits; the fact that it's not the client company or their customers is, largely, a side issue. Finding who DOES benefit - and how they leverage that benefit - is something that a lot of people and companies are apparently committed to preventing.
The remaining part of what got missed in my previous post. Writer talks about British Island and Oklahoma to be the replacement options. If only he did a little research on the school drop-out rate in US he would figure out whether the companies will find skilled people in that area.
Bottomline is that low-end work and small companies will vanish over a period of time but the bigger ones will continue to survive as well as flourish.
Oh and one more thing. Writer says rupee appreciating against weakening dollar!!!!! Dollar is weakening not coz rupee is appreciating but it%u2019s the same across the globe. How did Rediff allow such a dumbo%u2019s article to be published!!!????
Just chill and enjoy your life and focus on your careers. There ain%u2019t no turkey and thanksgiving day seems to be a lifetime away.
The writer of this article seems to have very little or no knowledge for writing about an industry. Some foolish comparisons made here are:
Indian salaries will continue to grow at 15% and above but US salaries will remain same. WHY????how can a person earning $5000 today be expected to earn the same in 2015?This is seriously crap. Salaries constant in US for next 8 years or so and that too when inflation is so high there at the moment and chances of it coming down in the near future are very bleak.
Now consider this. Most of the companies have already started slashing their salary hikes. So taking a logical and realistic figure of 8% growth unlike the writer and adding a 4% growth to US salaries(without this hike US citizens can%u2019t survive the existing inflation and US govt is not as dumb as the writer) the 2015 deadline easily gets extended to around 2023. Add to that the additional steps to be taken by the Indian companies and the extension could easily touch 2030. Considering that I am 25 now, I will be 47 at that time so I am really not sure how the writer considers the scenario to be of a turkey before thanksgiving day. Wonder if he meant dinosaur or something bigger%u2026Moreover the expenses like medical insurance and such things amount to a huge sum in US. Why were those things not taken into considerations?
Writer talks about British Island and Oklahoma to be the replacement options. If only he did a little research on the school drop-out rat
RE:dumb article, writer and believers ain't less dumb either
by Sunit Kumar on Mar 06, 2008 06:27 PM
What u said makes more logical sense than the author.
The one major issue I want to agree with is that a more sustainable industry deals with the idea that in services the two highest values are new ideas and customer service. While technology gets cheaper, automation will become a better idea over some of the jobs being done manually. Also, many other countries are fighting for the same pie that is currently facing a recession, they might want to work on saving themselves first before further outsourcing. This might trigger international call rates that might include higher taxes just to retain whatever can be kept in the US, if call centers and IT is a strong backbone in the US as well, they might go defensive.
India has been given enough time to grow and work on improving themselves into becoming a value added service economy. We should start working on new ideas that no one has thought of. We have the brains too and it is on a very high demand. Next stop might be some management outsourcing, or who knows what other ideas, bottomline is, if we can fight for something because we have good ideas and not because we have lower costs, we will have the opportunity to be more sustainable in the global economic scale.
