Thursday, June 25, 2009

Has America Outsourced High Tech to India?

For some time now, I've had a growing concern that America is in the process of outsourcing it's high tech industry to India, China and some of the Baltic countries. More and more of the jobs are going into these regions. While US corporate executives and high-tech companies get rich (at least for now) for outsourcing, many US high-tech workers are out of jobs because those jobs are now overseas. Beyond that, many of the US companies have a practice of hiring developers from India to work here in the US on H1B1 visas. Over time, many of those workers return to India where their money will go further thus creating a brain drain effect. This process has been going on for the last 30 years but now at a much more accelerated rate. The talent and experience is being developed elsewhere little by little.

Beyond just the general fears, I read the following article entitled Outsourcing CEO Says American Grads Are "Unemployable" which was published in Inside Tech today. While I realize that a large part of what is being outsourced to companies like HCL is more low-skill IT work, I can not help to think of all of the American companies that have development centers in Bangalore, Pune and Hydrabad where they work on parts of the core technology stacks. This is disturbing, to say the least, and reckless over the long haul as India and China build their high-tech infrastructure to compete with the US.

The US auto market will be under more pressure soon from cars that are designed and manufactured in India....


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