Interesting. So after they've graduated with an engineering degree, they go to finishing school. Good concept, that could be useful here in the states as well. However, there's noway those engineering companies will be able to keep paying them the salaries they are right now, they WILL eventually be making what engineers make here. Good reading though thanks
It is already happening, and both China and Eastern Europe are the beneficiaries according to some interesting chats I had with some outsourcing people on a visit to Bangalore. India, remains pretty much the top of the tree as far as western companies are concerned for IT outsourcing for the moment though.
Our IT dept met with a company the other day that is organizing college interns to do help desk as an alternative to outsourcing. His inside scoop was that more and more companies are bring customer facing phones jobs back to the US. This company even does web development using interns. The idea is that this costs the same or less than India without the communication and distance problems. This has also created a huge pool of talent for the hiring companies.
I wrote a paper on this back in my first year of uni. Here's my take on it all.
Firstly, I am not prejudice, just merely stating the facts. I believe we all are human beings that have the same anatomy and physiology, just different features and ethnic backgrounds.
The problem lies with communication. English is renowned as one the most difficult languages to grasp. Even many of us westerner's have great difficulties with it.
My experience as a contracted software developer with Australia's biggest telco provider has justified my argument.
The problem is that consumers expect superior customer support and when they pay for something, they expect it to do what it is supposed to do without any flaws. We have a problem with a service or product, we expect the issue to dealt with promptly and professionally. There is nothing more frustrating than having your phone line go down, you ring the local telco and you get someone from a call centre in India that cannot speak fluent English, so we get annoyed, hang-up and blame the company we are dealing with. We then go and find another company that does not out-source their work to foreign countries.
It is a known fact that many corporations out-source their work overseas as it's more cost effective in some cases to do so. They are only just realising now that it is not more cost effective as they lose customers as a result (no customers = bad bottom lines and lower share values).
This also is a problem with software development and many other fields. Yes it may be more cost effective to out-source the programming to another country (sometimes they save more than 75% by doing so) but when the time comes for the applications to be used and abused by the staff and consumers, they realise that the lack in communication causes more issues and therefore costs them more to rectify the problems down the track.
A definition of highly skilled worker means not only must they do their job well, they must also communicate effectively.
Thats not the impression I got when I read the article in Time magazine, India is still solidly ahead of the pack, they are just changing their aproach because customerz realise that low cost is not everything.
They are opening branches in other countries like the US and Eastern Europe.
And they are also outsorcing things to countries like Vietnam where the labour is even cheaper.
There are simply too many educated young people in India for them to run out of skill anytime soon.
In India, most of the IT outsourcing companies are located in the major Metros. Due to increasing demand of workers, salaries here have been rising every year. Employee attrition is another problem facing many companies. But over 90 % of Indians live outside the major metros. This is a vast untapped resource. Salary expectations in smaller towns are also smaller. Realising this many companies are opening offices away from the major IT hubs in smaller cities.
Interesting. So after they've graduated with an engineering degree, they go to finishing school. Good concept, that could be useful here in the states as well. However, there's noway those engineering companies will be able to keep paying them the salaries they are right now