Sun, 29 Jan 2006

As offshoring evolves, Indian firms even hire Americans

A good overview of the outsourcing morass: note that the ideal American candidate being hired by these Indian companies "has an undergrad degree in engineering and computer science and an M.B.A."

Note also that:

"They are certainly trying to move up the chain," says Ron Hira, a professor at Rochester Institute of Technology and coauthor of Outsourcing America. "Higher-level consulting services are very relationship based, so it makes sense that they're hiring more Americans."

They're not hiring American workers, they're hiring American salesmen.

It doesn't take an economics degree to conclude that one of the main U.S. exports of the 21st century is likely to be jobs. And by many accounts, India is at the head of the receiving line. Microsoft Chairman Bill Gates recently announced that the software giant will nearly double its workforce in India, to 7,000, and invest $1.7 billion there. IBM has added at least 10,000 Indian workers this year and could employ more than 50,000 Indians by the end of 2006. Accenture, EDS, and other consulting firms are following close behind. By 2015, 3.3 million jobs will have been sent overseas, according to Forrester Research. As the offshoring trend matures, U.S. firms will contract out increasing amounts of white-collar work like accounting, drug research, technical R&D, and even cartoon animation.

(link) [U.S. News & World Report]

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