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Sampige Javits

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since Aug 06, 2003
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Recent posts by Sampige Javits

My take on why jobs are going to India is quite different from what you
have mentioned.
Every company now wants to show profits.
One of the easist way to do it is to cut costs.
and one of the ways to cut costs is to outsource.
The biggest challenge for large corporations is
they have created an expense structure for an earlier era.
And now they are entering a situation in which revenue is slow,
flat or negative in some cases, pricing growth is very difficult,
profits are not going up, and they really have to bring their expense structure in line with today's reality. They now want more for less. One Solution - outsource.
Jobs go offshore not because the Indian techies are worth 1/10 their US counterparts but in fact because, they(the companies) can get the same (if not better) quality for 1/10th the price.
The quality of the the IT talent is almost the same in US and in India.
This also does not mean that they are underpaying the Indians in India?.
The standards of living are different in the two countries. If we can buy a car for about 1/3 times our salary, they can in their country too.
If you read about globalization, you will see that this(outsourcing) is only following the principles of globalization.
Stopping outsourcing all together is not a solution.
That would be trying to reverse the process of globalization.
India in fact is itself facing a backlash of globalization, although not in the IT sector but in farming. The farmers in India are slowly getting a taste of what globalization is due to products from Sri Lanka, Bangaldesh and others coming to India at much cheaper rates leaving products from the Indian Farmer with no takers.
Another point to think about is:
The United states has India not only as a outsourcing destincation but also as a huge market too.
The products of the United states have practically flooded the Indian Market.
Do you realise what economic backlash would occur if they stopped using the GE products, LG refrigerators, Stopped having coke/pepsi, closed all McDonalds, KFCs,GM cars, Cisco routers and other scores of Us products?
All this is however still economic jargon and will not help a middle class
guy who has just lost his job. There must be middle ground that we can take so that we keep as many jobs here as possible and still have the companies make profits.
I like the 80/20 idea someone here proposed.
We can find a solution to a problem if we understand the problem first.
If we have our concepts of the problem wrong to start off with, we cannot arrive at the right solution.
There is no point in spewing venom against the Indians. They are just doing what you would have done in their place.
16 years ago