India and Outsourceing

http://www.theinquirer.net/?article=14608

Mike,
I've been a regular visitor(came to know about "The Register" through Tom's) here and came across many articles about this outsourcing spree and you guys seem to have taken the stand against this idea.

At the same time u guys seem to have wrong information about how much do Indians get paid. In an article, about a month or two ago, u mentioned Indians do get paid around $3 - $4 where as their U.S. counterparts get paid double that. As a matter of fact, most of these companies that pick up these outsourcing projects pay around 90 cents to 120 cents unless it's a very high-end tech support like SAP Labs(which constitute less tan 2% of this business).
Even companies like Dell, IBM and HP fall in the same category of 90 cents.

Even the s/w engineers get paid probably 6 - 8% of their US Counterparts and never more(sad thing is that, we pay more than what u pay for the same products like cars and also the rents in cities like Bangalore and Mumbai are extrmely, extremely high) .

Most of my friends who did M.S in Michigan with me are getting paid about $80K per annum where as the Indians in India with the same experience get paid around $500 - $600 tops.
Regarding the article "Outsourcing pushes Indian property prices up", this hike in the property prices are never going to affect these companies, they effect only the employees who earn mere Rs. 9,000/- or less and work for more than 12 hours and w/o week-ends and horrible and ridiculous shifts.

Companies always get away with with sub standard infrastructure(PCs(lot of companies think a wheel mouse is a luxury), furniture, facilities, even headsets which are essential for this business) and nothing is going to effect them or their profits.

I feel that it's ridiculous that you or anybody in U.S and U.K getting all bugged up with this. In the 90s U.S. lost much more manufacturing jobs to China and other countries and nobody seemed to notice it.

Isn't this the part of globalization u guys taught the whole world? Now u seem to feel the side effects. What about the hundreds of small-scale industries in countries like India when they got wiped out by the MNCs and hundreds of people who lost their jobs?

I'm god damn sure that this is partly the fault of our *!#@#@ governments who didn't encourage the competition b/w the MNC's and the local companies and they are always interested in screwing these small local companies. In fact that's the difference b/w China and India.

In China, the govt. to SOME EXTENT extent, tried to support the local companies and made them compete with the MNCs (correct me if I'm wrong).

So, EARLIER YOU BEAT US WITH MORE INVESTMENTS AND NOW IS THE TIME WE BEAT U WITH HARD WORK(which, in turn means screwed up families), LESS PAY, HORRIBLE INFRASTRUCTURE, BAD WORKING CONDITIONS AND THE GREED OF YOUR OWN COMPANIES. All the best.
Rahul Chandana

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What surprises me is the fact that he sees this as a case FOR outsourceing

I dont really see this trend for out-sourcing from the UK continuing at the pace it has now.
For a start most major companies like BT when they choose to outsource did not fire any of the current employees they were simply re-trained for a different area so they are still paying the same amount of agents in the UK as they were before the out-sourcing.

Plus the over-all level of customer satisfaction has dropped considerably. I work for one of the few telecommunications companies that has not out-sourced and I doubt ever will and have seen many people base their decision on wether or not to change completly on the fact that when they phone up about a problem/question they will get through to an advisor who they can understand....and who understands them - and has some degree of local knowledge.

Oldest story doing the rounds about the out-sourcing was about a person who called up about the congestion charging in London - was put through to an Indian center and when he asked the question about how much it would cost him to be able to drive through the center of London was asked by the advisor "Which town is London in?"

Glasgow has more call centers than any other part of Scotland - and I would say prolly more if not pretty close to any other town/city in the UK and the industry here is still growing.

The current company I work for has such an influx of new campaigns that we are having to buy a new dialler as it is working out cheaper than purchasing licesenses for the current one!!

v_Ln

Quote:

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As far as software quality is concern anyone who things that development will police themselves will not have very good code. American Workers will never allow their work to be outsourced. The economy of this country depends on it. This is not a surf's society of the middle ages in which the poor will work for the rich. American Workers will win this battle after all their are many more americans workers voteing in this country for public leaders than CEO's.
http://comment.cio.com/comments/11530.html

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My question is in this Era of Globalisation and Open Markets which the G8 has themselves pushed for seeing those huge markets in India and China(half the world's Population) is Outsourcing that bad a concept. are is it really affectiong out economy that bad? are all those companies/business men who decide to Outsource from India or some where else Trators.?