India is Outsourcing Outsourcing

Have a look at this article from NY Times: Outsourcing Works, So India is Exporting Jobs.

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MYSORE, India — Thousands of Indians report to Infosys Technologies’ campus here to learn the finer points of programming. Lately, though, packs of foreigners have been roaming the manicured lawns, too.

Many of them are recent American college graduates, and some have even turned down job offers from coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: fly here for six months of training, then return home to work in the company’s American back offices.

India is outsourcing outsourcing.

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I have often wondered, at what point does it start making more sense for US companies to start using their own cost-effective states like Idaho and Oklahoma as back offices, instead of crowded and attrition heavy Bangalore. Salaries in India are certainly rising, and at 30% of US costs already, perhaps, soon, it would indeed make sense to train people and place them wherever – Chile, Argentina, or Wyoming.

What is interesting about this story is that it is the Indian Outsourcers who seem to be getting there first.

In another decade, the backwater states of America would become full of Infosys, Wipro, TCS employees. The only difference – they would be American instead of Indian, and they would be on the same time zone.