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Outsourcing is Good

Outsourcing is Good

The Indian Perspective

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.


7,033 views 40 replies
Reply #26 Top
am i correct in thinking that the drugs sold in india are often also manufactured in india?


Kingbee: Not just 'often' but almost 'always'. It is extremely difficult to import drugs into India. They require special permits, bureaucratic red tape and all that. So a drug being manufactured in the US by name say 'A' is sold at 1/4th the price in India by the same company or subsidiary under the name 'B'. Of course for most generic drugs like for e.g aspirin, crocin etc. the name remains the same.

And another thing(deviating from the topic slightly), India only subscribes to product patents and NOT process patents. Which means an Indian company cannot manufacture a drug by the name 'Crocin' here but it can copy the methods used to manufacture crocin and all the chemicals that go into it and sell it by another name say, 'Crocinol'. Cheeky isn't it?

This issue has always been a major bone of contention in trade disputes between the US and India. I think the Chinese also follow the same system, not sure though.
Reply #27 Top
It makes good sense though for a poor country like India to work like that. It's way too expensive to pay official US prices for medicine.
Reply #28 Top

And another thing(deviating from the topic slightly), India only subscribes to product patents and NOT process patents. Which means an Indian company cannot manufacture a drug by the name 'Crocin' here but it can copy the methods used to manufacture crocin and all the chemicals that go into it and sell it by another name say, 'Crocinol'. Cheeky isn't it?


thanks for clarifying that for me. 


as i said previously, if american companies are able to contract with workers in india to reduce their costs of operation, it seems only fair that american consumers should be able to lower their cost of living by purchasing crocinol or any other exact formulation of a prescription pharmaceutical from indian manufacturers. 

Reply #29 Top
Any of you know any American who decided to leave the country after this? I mean, if I was in that situation I would join up with say 10 colleagues, move to India, and advertise as "Outsource to Americans"
Reply #30 Top
Any of you know any American who decided to leave the country after this? I mean, if I was in that situation I would join up with say 10 colleagues, move to India, and advertise as "Outsource to Americans"
Reply #31 Top

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.

A truism hard to argue with, except that the well-educated of India should put that knowledge to improve the lot of the unfortuante there at home and not be flunkeys for the U.S. 

Reply #32 Top
"Looks like the job situation in Canada is worse than the US. "

It's regional. The Toronto region has been fairly badly hit, simply because of the concentration of tech people here.

"Africa is not exactly a bastion of political stability either."

I know, but it depends on the region. There are countries with fairly good infrastructure, and stable, if completely repressive, regimes in power. South America is an option too, except that most of the outsourcing is gravitating towards the absolute lowest price possible, and Africa's a lot cheaper than South America.
Reply #33 Top
"Any of you know any American who decided to leave the country after this? I mean, if I was in that situation I would join up with say 10 colleagues, move to India, and advertise as "Outsource to Americans".

Except that India is extremely restrictive in allowing foreigners to work. One Canadian outfit here that dumped 85% of its' people on the street last February looked into the possibility of moving them to India and dropping their salaries by 80% to match what the locals were paid. Although something like 60% of the people in the company expressed a willingness to move in order to keep their job, inquiries showed that it was completely unfeasable.

For one thing, you had to prove to the Indian government that the work being done by the foreign (Canadian) worker could not be done by a local Indian. A few manager types were able to go over temporarily, in order to train the new hires who would be replacing all the techs, but they couldn't stay for more than 6 months without re-applying and going through the approval process all over again.
Reply #34 Top

You know William, one of the reasons why I set up JoeUser.com in the first place was so that people like you would start blogs. And you haven't even created an acccount!

 

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Reply #39 Top
I'm ok with them taking jobs, this is nothing new, but I wish they would take a class in "American English" so when you call into the heart of New Delhi you could understand them.