Posted on 08/22/2004 2:33:58 PM PDT by Willie Green
Something about selling rope comes to mind...
Yeah, well its Clinton's fault, and those holdovers at the State Department.
I am still waiting for India to create something.
And how does Clinton play into this and why can't President Bush "turn around" the Clinton error?
ping
Thye are creating phone centers for telemarketing.
What is the Indian currency? I know it's not wampum so don't give me that. How does a person go about investing in a country?
Nuclear bombs, Aircraft Carriers, and Submarines don't impress you?
I don't think that stealing American jobs is very creative.
I LOVE YOUR POSTS!
Outsourcing is a red herring...there's no realistic way to stop info/jobs going over a fiberoptic cable. Where government intervention might make a difference is in our immigration policy...we could JUST SAY NO! Or in our trade policy..we could make serious tax and tariff adjustments. "Outsourcing" is the villian de jour for the dems (and some reps) precisely because it steers us away from that which could be controlled, given some political will.
As you have been posting here far longer than I have, I'll defer to you as to the real reasons. What do you think? Liberal press?
I believe it's the "rupee".
How does a person go about investing in a country?
Well you can try speculating with foreign currency exchange rates...
and pray that you don't get trompled by the Big Boys.
Or you can pack your bags, uproot your family and emigrate.
I'll look into the currency exchange rates.
"NEWS: India's [Outsourced] software exports log 55 percent growth in F2001" - http://www.apnic.net/mailing-lists/s-asia-it/archive/2001/06/msg00017.html
55% growth in 2001 down to 40% growth for 2005. The outsourcing train is losing steam.
5 Legislative Days Left Until The AWB Expires
India's salary growth threatens outsourcing
Mike Yamamoto
Staff Writer, CNET News.com
Rises in the wages paid to Indian IT workers could lead to the country pricing itself out of the offshore-outsourcing market
The US technology industry's demand for offshore services is apparently beginning to drive up pay rates in India, raising questions about the long-term benefits of outsourcing work to that country.
Information technology workers in India reported double-digit salary growth in 2003, according to recent research, while pay for similar work within US borders has been relatively stagnant if not declining. Although India's salaries generally remain significantly lower than US averages, the narrowing wage gap and other unforeseen factors are leading at least some American companies to reassess the cost savings to be had by sending work offshore.
"Expectations about the benefits of outsourcing are becoming more realistic," according to a report by DiamondCluster International, a consulting firm, which recently released a survey of more than 180 companies involved in offshore outsourcing. "Most buyers in the previous study expected gains in efficiency in the range of 50 percent. Today, those expectations have declined to 10 to 20 percent."
India's wage inflation, which approached an estimated 14 percent last year, is a natural byproduct of a classic supply-and-demand scenario. Although projections for outsourcing remain highly speculative, Forrester Research has estimated that 3.3 million American jobs will be moved to other countries by 2015. But as far back as a year ago, India technology trade association Nasscom (National Association of Software and Services Companies) was already concerned that India would fall short of demand for workers by as many as 235,000 professionals.
India quickly became the outsourcing nation of choice for US companies years ago because of its abundance of engineers, large English-speaking population and historical ties to Western countries, as well as its relatively low labour costs. So it is understandable that wages there would eventually rise as demand increased, especially as the expanding technology market has created new prosperity and begun to raise the cost of living in some parts of the country.
"If you had to come to Bangalore today, you would see very significant signs of development, a lot of new construction, a lot of young people, a lot of energy, a lot of shops and restaurants," said Nandan Nilekani, co-founder and chief executive of Infosys Technologies, in a recent interview with ZDNet UK sister site CNET News.com. "I think you get a sense of economic vitality that can largely be traced to the IT explosion."
India reported gains of 12.8 percent and 13.7 percent last year for positions in categories labeled "IT solution provider" and "software development," according to an annual Asia-Pacific survey of more than 500 companies by Hewitt Associates, an international business consultancy. The numbers, which reverse a six-year decline in pay raises in India, are far more than any increases reported among other nations surveyed.
By region, India's highest increases were reported in Chennai, at an average of 13.5 percent, followed by Bangalore, with 12.5 percent, and Kolkata, with 11.5 percent. For 2004, the study predicts that average wages will rise again, as much as 13.4 percent.
Choosing China
Though it is too early to predict any sort of bubble on the horizon, the rise in India's salaries could prompt more US companies to consider other parts of the world, where wages are far lower. Indeed, even some Indian companies have begun offshoring their own work to China.
"Tata Consultancy Services, one of India's four largest exporters of software, has begun to offshore its staff," the American Electronics Association says in a new report. "By 2005, TCS plans to have 3,000 software engineers in China, or 15 percent of their global work force."
China's universities, like those in India, award more bachelor's degrees in engineering than their counterparts in the United States. Yet China's wage growth rate for technology jobs was about half as much as India's, according to the Hewitt study. US pay rose 3.3 percent to 3.5 percent, the lowest increases ever recorded for American technology positions in the annual survey.
http://insight.zdnet.co.uk/specials/outsourcing/0,39026381,39150917,00.htm
Bearish India Inc may not pull down growth
Economy seen on track despite falling business confidence
Our Economy Bureau / New Delhi August 23, 2004
Despite falling business confidence across various sectors, economic think tanks are not revising their growth forecasts for the current fiscal. Estimates of economic growth in 2004-05 vary between 5.5 per cent and 6.5 per cent as against the government’s target of 6.5-7 per cent.
Inflation projections for the fiscal range from 5 to 7 per cent, with a drop in inflation levels expected next week onwards on account of the high base. The government had targeted an inflation of 5-5.5 per cent in the current fiscal.
Business expectations have taken a beating in the first quarter of the fiscal. The Business Confidence Index (BCI) of the National Council for Applied Economic Research (NCAER) has dipped 11.6 per cent to 131.2 in the April-June period, with companies lowering their sales and profit outlooks for the next six months.
Rising crude prices, higher inflation and uncertainties regarding central government policies mean that India Inc sees no major improvement in the investment climate and hence expects lower job creation and no major hike in wages.
A survey on 414 companies carried out by the Federation of Indian Chambers of Commerce and Industry (Ficci) also said that more than 200 top corporates expect flat or even shrinking profit growth in the months to come.
The Ficci business confidence survey, conducted during July-August 2004, found that the fall in confidence was due to the delayed monsoon, hardening crude prices, rising inflation and commodity prices.
“The BCI is only one of the elements which goes into the forecast of where the economy is headed,” said Suman Bery, director-general, NCAER. He added that there was no reason to revise its quarterly forecasts on the economy due to the survey results.
The Institute of Economic Growth, which bases its forecasts on an econometric model of the economy, said gross domestic product (GDP) growth, a measure of the goods and services produced in the economy, will not cross 6 per cent in the current fiscal.
“Agriculture is not likely to grow by more than 2 per cent and growth in other sectors is unlikely to be of the magnitude required to pull up overall economic growth above 6 per cent,” said IEG Director BB Bhattacharya. Inflation was likely to range between 6.5 and 7 per cent if oil prices do not rise any further, he added.
Inflation levels were likely to slide on account of the high base effect of inflation in end-August and September 2003, said Subir Gokarn, chief economist of Crisil.
The year as a whole would see a WPI-based (wholesale price index) inflation level of about 6 per cent, he added.
ICRA has projected a GDP growth of around 6.6 per cent in 2004-05, based on an 8 per cent growth in the non-agricultural sector, the same level as in the previous year. Agriculture is expected to grow at about 2 per cent in 2004-05.
Higher energy and steel prices will keep inflation relatively high. The current fiscal was likely to close with an inflation level of 5.5 per cent, said Saumitra Chaudhuri, economic advisor, ICRA.
http://www.business-standard.com/common/storypage.php?hpFlag=Y&chklogin=N&autono=164904&leftnm=lmnu2&leftindx=2&lselect=0
Thank you for posting this. It's ironic that India is worrying about the competition for American jobs from the Phillipines, Vietnam, and Russia.
I believe India's currency is called the rupee. I don't know if you could directly invest in their country, as they are probabaly smarter than America when it comes to foreign investments.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.