Guys,
This is what I think...
The so-called Indian corporates such as Wipro, TCS and Infosys are selling Indian and Indian skills cheap thereby allowing the US Corporates to enjoy the benefits through outsourcing ... why, pray why, should the same skill / job done by the same person be 10 times cheaper in India...
(not very unlike the sweat shops that Nike uses in China to make shoes ... sweat shops thrive because the people who work there dont really have an option - like us H1-B guys if I may say so) ...
dont tell me about purchase-power-parity or standard of living etc... the person doing the same job having the same skill deserves to be paid atleast the same if not less and is entitled to the same standard of living...
the cost of living in India and the US (or Canada or Australia or UK or Germany) is roughly the same (or varies within a narrow range) if the same standard of living has to be maintained
.. think about it.. the same person doing the same job in INdia gets 10 times lesser salary that s/he would get if he manages to get to the US ????
How long do you think it is going to take this person to start demanding much higher salaries... to do the work in India... and will US Corporates that outsource now like it if this disparity, that makes outsourcing attractive now, reduces
Outsourcing will be a SHORT TERM FAD like so many other things.. and will FADE away as soon as it came... it is either that... or some most low-end jobs will be shipped out ... which is detrimental to the economy of INdia (case in point Malaysia)
Thoughts...??
The US corporates will be able to enjoy these benefits as long as the exchange remains in US's favor....
Very soon the