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Friday, April 06, 2007

The outsourcing contrasts

I was reading this nice post by Shantanu Bhagwat, which is in fact a good compilation of varied perspectives on oustsourcing by people across the developing world. Mostly all of them acknowledge it as a real benefit and sensible economics to companies that offshore jobs overseas which far outweigh the economic costs of job losses caused by it in the home countries.

A quote from this article in International Herald Tribune by Anand Giridharadas.

“There is no job that is done in Cisco that a guy in India can’t do,” said Samu Devarajan, a Cisco managing director in Bangalore. “If this theater becomes successful and grows the way we want it to grow, I see no reason why the CEO of Cisco couldn’t sit in India.”

It symbolises the level of confidence Indian firms have on their competence. The article gives several other instances where high end jobs have started flowing to India.

“Boeing and Airbus now employ hundreds of Indians on critical tasks, including the design of next-generation cockpits and systems to prevent airborne collisions. For about one-fifth the cost, investment banks like Morgan Stanley are hiring Indians to analyze U.S. stocks, a job that can pay $200,000 a year or more on Wall Street” etc.

Shantanu’s post as well cites several other articles on globalization and off-shoring. As Presidential election approaches in the US, the shrill gets louder en route to 1600, Pennsylvania Avenue.

I think it could do with a little contrast that you’d find in my previous post.

Can’t agree more. What do you think ?

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