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Cisco to invest US$50 million, triple workforce in India's Bangalore
India Daily ^ | Oct. 21, 2005 | Harish Baliga

Posted on 11/13/2005 4:56:24 PM PST by jb6

Cisco is bullish on India and cannot wait to use Indian expertise for research and development.

Cisco Systems Inc. will hire more engineers in India than in the United States for its research and development work over the next three years, the company's chief executive said Friday.

President and CEO John Chambers said the company would invest US$50 million (A41.83 million) to set up a second research and development center in Bangalore, India's technology hub, and triple its workforce here to more than 4,000 by 2008.

He said this would mean more engineers are hired in India than in the U.S. over the next three years.

Cisco currently employs 1,400 engineers at its existing center in Bangalore.

"This (new) R&D center will be the second major site for Cisco after the U.S.," the Dow Jones Newswires quoted Chambers as saying. "In terms of R&D efforts, India will grow faster in absolute numbers compared to the U.S," he said during a visit to Bangalore.

On Wednesday, Chambers met senior Indian government officials in New Delhi and announced that Cisco will spend US$1.1 billion (A0.92 billion) in India over the next three years in the company's largest investment outside the United States. The money will be mostly invested in development of network infrastructure and related technologies.


TOPICS: Business/Economy
KEYWORDS: bangalore; business; cisco; india; outsourcing
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1 posted on 11/13/2005 4:56:26 PM PST by jb6
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To: jb6

"He said this would mean more engineers are hired in India than in the U.S. over the next three years."

and people wonder and attack me (and others) when I post that american kids are bailing out of these engineering college programs as fast as they can. this is an example of why.

stuff like this, is "under the radar" with regards to why Bush polls so poorly on the economy - it doesn't get talked about much, but for people who work in this field and see this every day, its there.


2 posted on 11/13/2005 4:59:47 PM PST by oceanview
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To: oceanview

Fully agreed. Big Business has given up on the concept of nations. They consider normal workers in western countries as usefull and replaceable idiots, to be replaced by cheaper workers in upcoming "nations", until they scuttle them for some other current Fourth World nation. Big Business is unpatriotic. Their god is the buck.


3 posted on 11/13/2005 5:04:40 PM PST by seppel
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To: jb6

This kind of stuff only stops when US customers begin boycotting Cisco products.


4 posted on 11/13/2005 5:05:55 PM PST by seppel
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To: jb6

Same with EMC ($250,000,000 so far):

http://www.bizjournals.com/boston/stories/2003/11/17/daily10.html

http://www.bizjournals.com/boston/stories/2005/02/21/daily63.html


5 posted on 11/13/2005 5:08:01 PM PST by LibFreeOrDie (L'chaim!)
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To: seppel
They consider normal workers in western countries as usefull and replaceable idiots

IMO, our students are dropping out of engineering programs because they're "too hard" for the average student produced by our publik skool system. I can't blame Cisco for moving its operations to places where the employees are better prepared for high-level work.
6 posted on 11/13/2005 5:09:56 PM PST by hispanichoosier
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To: oceanview
Unfortunately, Americans have been bailing out of engineering/cs/math/science for some time (probably to become lawyers). I don't think that you can just blame offshoring.

Also, keep in mind that companies like Cisco are probably going to see most of their growth by selling overseas. It makes sense that a certain percent of their development would be done over there.

7 posted on 11/13/2005 5:12:51 PM PST by ottothedog (Forbes 2008)
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To: ShadowAce; Ernest_at_the_Beach

Tech pings.


8 posted on 11/13/2005 5:13:42 PM PST by Salo (He hath touched me with his noodly appendage. Ramen.)
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To: hispanichoosier

no, that's not why they are not entering those programs. we may have problems with our public high schools, but there are still plenty of them producing qualified students who are smart enough to enter engineering programs.

the problem is, the opportunites they have when they graduate. young people see other fields as more lucrative, less prone to offshoring, having more stability - so they enter those college programs. law, real estate, financial services, health care, government, teaching, hotel & restaurant management, etc.

indians aren't better prepared or better engineers - they just work for $25K a year. don't over analyze the situation, its all about the $$$s.


9 posted on 11/13/2005 5:16:04 PM PST by oceanview
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To: seppel

I'm a network manager - and you can't actually boycott Cisco products: they are top of the line and I can't imagine running a network without them. I do, however, build my own routers with openBSD and old PCs where I can so I don't have to buy as much Cisco gear.


10 posted on 11/13/2005 5:18:42 PM PST by Salo (He hath touched me with his noodly appendage. Ramen.)
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To: ottothedog

engineering is going to become a boutique profession in the US - smaller numbers of people from only the top schools.

the only thing keeping programs in the mid tier schools afloat - is matriculation of foreign nationals. once those countries have a chance to build up their own programs in those fields, those students will stop coming here, and you will see those mid and lowe tier US programs close up shop. I guess they can teach "real estate flipping 101" as a new degree program.


11 posted on 11/13/2005 5:19:24 PM PST by oceanview
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To: oceanview

$25K???? Try $6-10K.


12 posted on 11/13/2005 5:29:07 PM PST by jb6 (The Atheist/Pagan mind, a quandary wrapped in egoism and served with a side order of self importance)
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To: jb6

maybe for a call desk jockey, but for an engineer?


13 posted on 11/13/2005 5:31:44 PM PST by oceanview
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To: oceanview
engineering is going to become a boutique profession in the US

doubtful

The design/engineering of a product, is essentially a fixed cost (i.e. it costs you X up front to design it). It costs you no more if you build 1 or 1,000,000. I don't see that sending it out to India and saving 30% (or less when you factor in all the administrative costs) is going to be a big incentive in the long run. What will matter is results. I see, in many cases companies are not happy with the results they are getting with their projects they send offshore.

That said, it makes sense to put to work people in other countries who are good at engineering. I just think over the long haul that we have a lot of structural advantages here. The disadvantages here are nominal cost, and lack of interest on the part of a lot of kids.

My college age brother in law who seems pretty smart wants to be a musician. When I was his age I liked programming my computer.

14 posted on 11/13/2005 5:38:58 PM PST by ottothedog (Forbes 2008)
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To: oceanview
That is for an engineer. Call desk get even less...now it spends a loooooooooooot further then in the US.

America's Engineered Decline


LOUISVILLE, COLORADO -- (OfficialWire) -- 11/07/05 -- For the past two centuries, AmericaÂ’s middle class thrived. It bulwarked the foundation of our liberties and became the envy of the world.

Today, because of Congressional-sponsored insourcing, offshoring, outsourcing along with FTAA, CAFTA, NAFTA and other corporate tools, Americans find themselves joining the "race to the bottom."

In his laser-piercing book, "AMERICAÂ’S ENGINEERED DECLINE," William Norman Grigg, editor of the New American, said, "Even as our nation exports jobs that once opened the door to the middle class, we are importing waves of unskilled immigrants, including millions of illegals. No longer our protector, our political elite schemes to merge our country with other nations of this hemisphere into a continent-spanning socialist mega-state modeled after the European Union."

The glitch to melding America to failed Third World economies and people—illustrated by Mexico and all of Central America—becomes apparent when a First World country becomes meshed with horrific poverty, crime, illiteracy and diseases injected into itself. ItÂ’s a recipe for national suicide.

Grigg spells AmericaÂ’s decline with exacting clarity.

He quotes Colorado Congressman Tom Tancredo who echoes Grigg’s conclusions, "We are undergoing a radical change in our national character and social structure, not to mention language, and it shouldn’t be allowed to happen without at the very least the informed consent of the public. I am among those who believe that it shouldn’t be allowed to happen, period—and that’s the majority view, which is probably why it’s being done by stealth and misdirection."

Grigg presents cogent examples why Americans sweat over their country’s future. America suffers growing consequences in every sector—mirroring the corruption seen in Third World countries. Instead of our Congress adhering to the Constitution, a majority march to the beat of a different drummer with a social experiment much like what Lenin, Stalin and Khrushchev forced on Russia.

The Free Trade Area of the Americas agreement will go down in the history books as the beginning of the end of AmericaÂ’s middle class. "WeÂ’re basically liquidating our whole middle class, polarizing people on the two extremes, haves and have-nots...weÂ’ll be a third world country," said Roger Chastain.

With complicity from Congress, mega corporate interests de-industrialize the USA with every action that moves jobs overseas or imports this 21st century slave labor into America with H-1B, H-2B, L-1 and other visas. "We’re killing ourselves," laments Jerry Skoff, owner of a Wisconsin manufacturing firm. "We’re being reduced from a manufacturing and hi-tech economy into a service economy—and if things continue the way they are, the service sector will eventually go the same direction."

Last week, the Senate, after tens of thousands of faxes and calls to stop the extra 350,000 H-1B visas from Senate Bill 1932, voted 84 to 14 against American workers. WeÂ’ll now enjoy not only 350,000 foreign workers taking our jobs, but we get their families, too. It shows you the extent of 84 senators bought off by corporations.

GriggÂ’s book rivets readers as he exposes the underbelly of AmericaÂ’s leaders, which means your senator and congressman, growing disregard of our citizens. By offshoring jobs to China, we transfer our industrial strength to the communist giant in Beijing.

Grigg exposes America’s impossible debt load. We’ve transformed from the largest creditor nation into the largest borrower in world history. U.S. consumers carry a $2.0 trillion debt with the average credit card balance exceeding $8,000.00. When you pile that onto the $7.9 trillion national debt—a lump the size of a bullfrog throbs in your throat. What happens when foreign investors raise the interest or call in the debts?

At some point, China may peg its Yuan to the more valued Euro dollar—collapsing the U.S. dollar. "That will create hyperinflation—the swiftest way to destroy the middle class," said Christopher Wood, of Credit Lyonnais Securities Asia.

Grigg continued, "The real objective is to destroy national sovereignty and erect a global government...the globalist counterfeit being offered today is a highway to universal serfdom."

One of the sobering aspects of this book concerns the exposeÂ’ of George W. BushÂ’s personal goal of dissolving AmericaÂ’s borders. He addressed a Hispanic rally in 2001 saying, "We want our Mexican neighbor to do well...and thatÂ’s why it is so important for us to tear down barriers and walls that might separate Mexico from the United States." The majority of Congress supports BushÂ’s objectives by their actions against American citizens.

When we observe the social and governmental experiment of Marxism foisted on the Russian people as well as China—we must ask ourselves—what is our fate from this extreme ‘socialistic’ experiment? First, it will create violent social upheaval on both sides of the Mexican border.

"Â’Social upheavalÂ’ is a remarkably antiseptic term to describe the loss of our national identity, the importation of MS-13 gang criminals by the thousands, importation of welfare parasites, depression of our labor markets and exportation of our manufacturing capacity," Grigg said. "WeÂ’ll suffer the "downward harmonization" of our living standard with that of Mexico. This is the price of a unified world."

In my travels throughout the Third World, I can say, unequivocally, we cannot and will not ‘harmonize’ with Mexico’s or Central America’s uneducated, poverty stricken, endlessly growing and unskilled masses. This bogus social experiment will not work to better any American, but it will drop America into the clutches of Third World misery. As they invade our vanishing borders, America’s middle class will not see one single benefit.

What Grigg illustrates, I’ve witnessed around the world—"Corruption becomes a mechanism by which Third World societies function." Look around you as it pours into America. Corruption operates at the highest levels in America. It operates because 96 percent of senators and congressmen keep being elected by a trusting public. Strom Thurmond’s endless career along with Teddy Kennedy illustrate how utterly obedient voters have become to name recognition at the ballot box. The worse it becomes, we keep voting them back into position to make it worse than that!

"While defeating the FTAA is vital, we must also end our nationÂ’s entanglements in needless foreign conflicts, involvement in the United Nations, stop foreign aid and control our borders," Grigg said. "Our central government must be trimmed back to proper constitutional size so our businesses are no longer suffocated beneath regulations and bled dry by taxes."

"The organized effort to destroy our civilization requires an organized opposition," Grigg said.

This book exposes America’s leaders and political elites ready to sacrifice America’s past, present and future—in an experiment in socialism that has failed miserably in every country on the planet. Will we survive this experiment? Look around you in Los Angeles, California for consequences already playing out. Notice the riots in France last week by Muslim immigrants who came legally. Just think what is happening to us via illegal aliens piling up everywhere in the United States. Each of our cities, one by one, degrades into the chaos and misery of this Third World invasion brought to us by our president and Congress.

For eye opening monthly information, subscribe to The New American Magazine at www.thenewamerican.com where you can also obtain a copy of GriggÂ’s book.

He offers dramatic methods for pulling out of this invasion. Many are like the ones IÂ’ve been advocating along with Tom Tancredo. The biggest key stems from more Americans getting off their tail feathers and into action.

"The roots of violence are wealth without work, pleasure without conscience, knowledge without character, commerce without morality, science without humanity, worship without sacrifice, and politics without principles." Mahatma Gandhi.


Go to www.frostywooldridge.com and click on 'What you can do' and click on the 28-point action letter to stop this nation-destroying madness. For you West Coast night owls, every Thursday you can catch yours truly in Las Vegas, Nevada on Mark Edwards' "Wake Up America" talk show on 50,000 watt KDWN-Am-720 10:00 PM to midnight PT, or on the worldwide Internet at www.wakeupamericafoundation.com On the home page, click on www.americanvoiceradio.com heard around the world. Five nights a week, Edwards engages patriots from across the nation to bring you the latest on this nation-destroying invasion. Also go to www.supportbordercontrols.com.

More news & views by Frosty Wooldridge


This article was first published on NewsWithViews.com and is re-printed with permission of the author.

Frosty Wooldridge is a teacher and author who has bicycled 100,000 miles on six continents to see overpopulation up close and ugly. His explosive new book Immigration's Unarmed Invasion: Deadly Consequences may be obtained by calling tollfree +1 (888) 280-7715 or by visiting www.FrostyWooldridge.com.



15 posted on 11/13/2005 5:41:45 PM PST by jb6 (The Atheist/Pagan mind, a quandary wrapped in egoism and served with a side order of self importance)
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To: ottothedog

well, apparently Cisco is happy enough with their results - to expand it.

I don't see anything that is going to turn around the college matriculation trends in the US.


16 posted on 11/13/2005 5:43:03 PM PST by oceanview
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To: oceanview
the problem is, the opportunites they have when they graduate.

As a current student at a college with a strong engineering department, I can tell you that those who do drop engineering generally do so because it's too hard, and instead generally go into teaching or some lower-paid field. Engineers (along with accountants) generally have the best career prospects of those who stay with an undergraduate degree.

17 posted on 11/13/2005 5:44:25 PM PST by Young Scholar
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To: jb6; oceanview
My gut impression is that this is probably accurate. I think that offshoring is probaby way overhyped, and is going to be less of an issue than people think. My experience here in the midwest is that bill rates have gone back close to the late 1990's rates. Your mileage may differ...

http://www.networkworld.com/news/2005/072505-offshore.html

Hatch wrote Ventoro’s Offshore 2005 Research report, released earlier this month, which found that cost savings for companies that send work overseas averages a little over 9%. “If you exclude those that had catastrophic failures and just look at projects that were deemed to be a success, you still see only about 19% average cost savings,” Hatch says.

18 posted on 11/13/2005 5:45:51 PM PST by ottothedog (Forbes 2008)
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To: oceanview
indians aren't better prepared or better engineers - they just work for $25K a year

On the contrary, I'd say that if they can perform the same work (quality and quantity) as American grads but for 1/2 the price, it's eminently reasonable for Cisco to look to them to supply engineering labor. I'm not saying that I approve of Cisco's decision--I don't have all the info--but I am saying that it is reasonable.
19 posted on 11/13/2005 5:46:20 PM PST by hispanichoosier
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Comment #20 Removed by Moderator


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