Chip maker shifts design to India (another one bites the dust)

BBC ^ | 22 April, 2004

[traumer]

Californian chip maker AMD is to set up a design centre in India, the first of its kind outside the United States. The centre to initially employ 50 engineers will be located in the technology hub of Bangalore. AMD has said its plan is part of an expansion and would not involve laying off American engineers.

A row is raging in the US over whether the outsourcing of work to the developing world where costs are lower is costing US citizens their jobs.

"We are expanding engineering operations at all of our design locations," AMD's Randy Allen said.

AMD says it will invest $5m in the centre over three years. AMD's rival, Intel, and chip makers such as Texas Instruments, Silicon Laboratories and Flextronics have already shifted part of their design work to India.

[DB]

Make that "...ruining their reputation..."

[FR_addict]

As far as offshore call centers, look at Dell. They’ve basically given up on the idea because it was ruining there reputation and ultimately costing them business.

They only brought it back for their big business customers, not for the little guy. They don't care about supporting the little guy and that's why I won't buy a Dell computer. They are going after the much more profitable storage market. We have had terrible support for the last two years from Dell.

[FR_addict]

It takes time, dedication and hard work. Yet millions do it and succeed as I did. And no it may not last. Those are the challenges...

Out of every small business started in this country, I believe the statistic is 2 out of 3 don't make it. I'm not afraid of hard work. I started my own software business about 15 years ago.

After eight years, we packed it in. We put in long hours everyday of those eight years. I am a workaholic and spend my time programming, designing, and studying, while waiting to land another job. The jobs just aren't out there.

[gg188]

I work in the hq of a very large company known for technology and industry leadership that is outsourcing and offshoring every kind of function, especially---but certainly not limited to---IT (their cost structure militates it), to H1B's here and to Bangalore offshore as fast as it can, like every other corporation. And I am not applying a value judgement on the practice--rather, just telling it like it is in the highest levels of corporate America. A valid market argument stands to support the practice, though there are arguments against it, as well.

[lelio]

Part of the problem is with US education. We simply aren't graduating enough engineers.

Why enter a field that's going to be offshored?

[lelio]

As far as hiring, I'd hire a capable engineer tomorrow if I could find one that can do what I need without me directly supervising it.

That's odd, you don't know of a single established EE that isn't making $100k+ yet you can't find a capable engineer. Seems like a disconnect.

[lelio]

The wheel of global power has been moving steadily westward over the centuries.

I agree. Just like Britain saw the US take over its work and eventually shrank down to a socialist government with a lot of people on the dole, the US is going to see the same thing happen with jobs going to India and China.

Its going to be interesting in 8 years or so when China's the world's producer of everything and they start throwing their weight around. It might happen sooner as they need to import a lot of their energy as their coal is subpar. Perhaps they'll invade a middle eastern country for their oil.

[lelio]

As far as offshore call centers, look at Dell. They?ve basically given up on the idea because it was ruining there reputation and ultimately costing them business.

They've moved back some high end corporate call center work, but that's it. Can you post a link to a story that they've gived up totally on offshore call centers?

I think Dell should offer a "semi high end" support contract for a monthly fee -- I think now the choices are either "big corporate buyer" or "everyone else." That way everyone's happy. Some business moves back here to the US, and those that want higher end service can get it.

[FR_addict]

They've moved back some high end corporate call center work, but that's it. Can you post a link to a story that they've gived up totally on offshore call centers?

I should have put the above in quotes. I disagreed with DB post 80 where this quote came from, DB said they brought it back. I agree with you. They only brought back the support for their high-end business customers. They are only paying lip service to the little guy anymore.

I doubt if it changes anytime soon. They are too busy raking in the bucks from their storage line. We have three DELL computers and I don't plan to buy another unless their policy changes.

[DB]

Yes, most new business do fail. On the other hand if you look at most successful people they had several failures prior to their success.

I was involved with several "opportunities" over the years that failed even though I provided what was requested on budget and on time. It can be very frustrating.

You can't stop trying.

[DB]

I use to live in the Bay Area and fortunately escaped. It has been 15 years now. Most the engineers I know are long time associates and are self-employed.

My business (where the manufacturing is) is in San Jose. We have a manufacturing engineer there along with several other employees.

So I will admit that I'm somewhat disconnected from the heart of the industry due to where I live.

The person I need needs to be skilled in a wide area (analog, digital including FGPA design in VHDL, RF, embedded software and PCB layout) and have a familiarity with communications equipment (particularly satellite) along with being self motivated that can work productively unsupervised at home. That's a tall order... It also needs to be someone that can grow into our business for the long term.

[DB]

See #91.

[DB]

I believe FR_addict is correct. Dell has only changed there business customer support back to domestic sources.

[DB]

Did it again...

Their, not there...

[FR_addict]

Did it again... Their, not there...

Are you sure you're not a copy editor rather than an engineer? I know it's not there, just made a mistake. Didn't know it would bug you.

I was just listening to a segment on CNN about Jet Blue. They sound like a great company to work for. One that cares about their employees, no layoffs and the reservationists can work from home. They are keeping the jobs in the USA and employing people who may not be able to work away from the home. I don't know for sure, but I think Continental is outsourcing their reservations. The last two reservationists were both Indians and the first was very hard to understand.

Jet Blue employees have profit sharing and seemed to be genuinely happy. It's nice to hear about a company that thinks employees are people, not disposable resources.

[DB]

No, I'm no copy editor... I'd be fired my first day by closing time... I was referring to my use of "there" not anyone else's. I write poorly so I try harder than most to make it presentable and still screw it up...

We treat our employees well too. They are key to our business and we know it. As long as the work gets done they can manage themselves as they please (as in their work schedules and how they go about doing their work). My partner and I as their managers try to listen and provide what they need to make their jobs easier and to produce a better product more efficiently.

[dixie sass]

Although I understand the financial reasons that companies are moving overseas, it still isn't right.

Why don't they didn't they give the American worker the alternative of taking less money (wages) and keep themselves working and the companies here in the states? Rather than just up and moving all are part of the businesses.

Do they think that we would cut our own throats and say no? Or maybe they already have and the American worker said "No, I won't take less to keep the company here, I'll go on welfare or unemployment first."

[FR_addict]

We treat our employees well too. They are key to our business and we know it. As long as the work gets done they can manage themselves as they please (as in their work schedules and how they go about doing their work). My partner and I as their managers try to listen and provide what they need to make their jobs easier and to produce a better product more efficiently.

Well, if you need any software engineers, I'm available.

[Cronos]

What's up with the headline? it says
Chip maker shifts design to India
And then the article says
Californian chip maker AMD is to set up a design centre in India, the first of its kind outside the United States

No news of "shifting"

[Cronos]

Outsourcing your core competency is a really, really bad idea.

Uhhh, AMD is NOT outsourcing, it's setting up another design shop in a different location. This is NOT outsourcing. AMD and Intel have a number of Americans of Asian descent in their design departments already, ergo, grab good engineers/technicians at the source.