Outsourcing American Jobs To India

5 Pages 1246 Words

Outsourcing American Jobs to India



When it comes down to companies hiring five or six highly educated, English speaking

Indian Engineers in place of one American Engineer, you can see why Americans are in fear of

losing their jobs.

In 1991 the Communication and Information division of the Government of India set up a

civilization called Software Technology Parks of India, to endorse the software exports from

India. India also has one of the largest competitive technical workforces and they are

providing a cost effective solution for companies both large and small.


India graduates 50,000 engineers a year. Bangalore alone graduates 40,000 a year.

Bangalore is one of the most industrialized cities in India (Hingorani, 2005). Bangalore is the

capitol of Karnataka, this is the sixth largest city in India. Bangalore has a growing population of

six million. That averages 7,100 people per square mile. Traffic in Bangalore is outrageous. A

ride that took twenty minutes a few years ago is now two hours.

When the dot – com stock market crashed in 2000, companies were left scrambling to pick

up the pieces. Texas Instruments was the first known company to outsource and build a

technology center in Bangalore India in 1986 (Biz news, 2005). But it wasn’t until the dot - com

crash outsourcing became really well heard about. Outsourcing is a process in which a company

sends some of its in house operation out to a third party operation. This third party is working for

about five cents on an American dollar. Along with the India’s Government constantly

reinforcing their commitment to the Information Technology (IT) industry with its simple

policies.

Although some companies are concerned about the loss of American jobs, they can get the

same quality work for lower wages. How can these advantages of outsourcing their products to

India be ignored? Two thirds of ...