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Politics : High Tolerance Plasticity
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To: bull_derrick who wrote (22106)11/3/2004 1:04:47 PM
From: Sun Tzu  Read Replies (1) of 23153
 
Thanks for a thoughtful reply.

As it happens, you and I are in the same business <vbg>. I just got back from Bangalore and SEA. While I agree 100% with your opinion on the software quality and communication problems with India (I've been banging heads with them for two years now and know this first hand), I disagree that outsourcing is a fad.

Right now the price of land in Bangalore can be $80 per Sf and unbuilt land is more expensive than built one because everyone is demoloshing the buildings to make them with better standards. The guy down the hall from me was in Bangalore since August and was not due back till the new year. His task was to hire and train the Indians for the new Microsoft center. The point I am making is that this "fad" is here to stay for at least another few years and by that time the Indians will be a lot more on par with American expectations and there will be no reason for the "fad" to end.

Furthermore, worker mobility and market liquidity are a fact of life. While I would shudder to trust a major project to India, I'd have no problems passing it on to Russia. I was in the Eastern Europe this summer and the workers you can get there are quite good. Right now I have a couple of Ph.Ds working for me in both locations. You can easily see low-end and high-end work being outsourced while America will do the middle and very high-end work.

Boomers going out of the workforce will create some work for Americans here. But if the dollar keeps falling, why should they stay and work in America?

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