Posted on 01/30/2006 7:24:12 AM PST by Fawn
Computer maker Dell Inc. said Monday it planned to add 5,000 jobs in India over the next two years, bringing its work force in the country to 15,000.
"Dell is also looking to set up a manufacturing center in India, a move that could help boost the sale of Dell computers here, President and CEO Kevin Rollins told reporters after a meeting with Indian Prime Minister Manmohan Singh.
The Round Rock, Texas-based company will hire 700 to 1,000 workers for a new call center in Gurgaon, a satellite town of the capital, New Delhi, Rollins said. The new call center, the company's fourth in India, will open in April, he said.
The other new hires will staff call centers in the cities of Bangalore and Hyderabad in southern India and Mohali in the northern state of Punjab. Also this year, the company plans to double the staff at its product testing center in Bangalore, which currently employs 300 engineers, Rollins said.
During his previous visit to India in April last year, Rollins had said Dell would make India a hub for its software development and back-office work.
Currently, the company has three call centers in India, a product testing center for corporate customers and a global software development center. Some 10,000 people are employed at these facilities.
Scores of Western companies have been cutting costs by shifting software development, engineering design and routine office functions to countries such as India, where English-speaking workers are plentiful and wages are low.
But Rollins said his company's expansion plans were not limited to tapping the talent, but also benefit from the growing demand for desktop computers and notebooks.
Dell accounts for less than 4 percent of the 4 million computers sold in India, whereas the company's share in the global market is about 18 percent, he said.
Taxes levied by the Indian government on computers and computer parts are a major factor affecting pricing of Dell products and their sluggish sales here.
A manufacturing facility could help the company boost its presence in India, where computer sales are expected to increase to 10 million annually over the next three to five years.
"We have come to the conclusion that time is ripe to consider a manufacturing facility in India," Rollins said. "We want to do it fast," he said, but gave no time frame or investment details.
He said the company was talking to local authorities in several Indian states to identify a site and a decision will be made soon.
Dell currently operates nine plants, six of them outside the United States.
Maybe not double but certainly increase sharply. It doesn't matter if a price is high if your wage rises with it. Money doesn't have any other value than what men put on it. With internal trade, prices will not rise beyond the prevailing wage. The market forces will keep the two in line. Job abundance and relative worker scarcity will keep the wages in line with prices.
We don't have to wonder about this process. It has already worked. What's the point of changing it? 
So, sneakers double in price and my salary will increase sharply? Why? Does my employer have to boost my salary to stay competitive with sneaker makers?
With internal trade, prices will not rise beyond the prevailing wage.
Why? How much will these American shoe makers pull down in salary? $6 an hour? $20 an hour?
Job abundance and relative worker scarcity will keep the wages in line with prices.
So, salaries double, prices double, how is that not 100% inflation? How does that not destroy 50% of our savings?
Right. Why worry? It's not like Americans need to drive to work. It's not like our goods are shipped in trucks.
Every time our people have been squeezed, geniuses have popped up all over the place. $180 a barrel is pretty tight squeeze.
Yes, a tight squeeze. Remind me what that squeeze in 1973, when oil quadrupled, did to our economy. Did our squeezed geniuses finally build the nuclear powered car? Or did we just go into a recession? That won't be a problem because we'll have all the new sneaker making jobs to boost the economy, right?
It must be like Communism to the left. The only reason it hasn't worked is because the right people haven't tried it yet.
Hence the reason for outsourcing....
These blokes know how to use tariffs.
"The only reason I'm able to glean is that trading spit with other nations to such a degree will make them dependent on the American consumer for their riches, so that they wouldn't dare attack us. This shows an abysmal ignorance of human nature, especially that of despotic regimes. "
This may be my new tagline.
You mean the Indians don't want or get health insurance? Do you have health insurance? Do you know how much it would cost for just a mammogram, exray, dr. visit? Do you think it's too unreasonable to have insurance??
No, sneakers increase sharply. Double/double is for comparison purposes.
Does my employer have to boost my salary to stay competitive with sneaker makers?
Not on purpose. It just works that way with internal production and trade. It can't work that way when production and trade occurs internationally because oppressive regimes force their people to work at a repressive wage.
Why?
Because if they did people couldn't buy them.
So, salaries double, prices double, how is that not 100% inflation?
If wages stay consistent with prices, there is no underbuying and no overbuying. "Money" does not have a divine value set by God.
It was about that time when serious starts were made to find alternatives. There are alternatives to sources of refined fuels now (not corn or hydrogen), facing barriers to commercial production, not because they don't work.
Why limit ourselves to nuclear powered cars?
Never the less, foreign oil prices can only go up so far before it will be cost effective to squeeze the vast energy resources in oil shale, and other sources The oil argument is not a good one.
It is just an on-going saga of sing/song voices reading from a canned script....
...the computer customer be damned.
I suppose you have a real world example where a country stops imports and their economy doesn't sink?
If wages stay consistent with prices, there is no underbuying and no overbuying.
How do wages stay consistent with prices?
Saying it is ridiculous to think that 8 miilion domestic barrels a day would be much more expensive than the 20 million barrels we currently consume is not a good argument?
Why doesn't 8 million barrels at $180 each crash our economy?
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