Outsourcing goes full circle as Indian firms look to the U.S. for cheap labour

[Judi Lynn]

Is this a taste of the future? Outsourcing goes full circle as Indian firms look to the U.S. for cheap labour
By Daily Mail Reporter

Last updated at 2:04 PM on 23rd May 2011

It's a frustration experienced by most people when they've made phone calls to large companies.

An unfamiliar voice answers the phone in a call centre hundreds of miles away where cheap labour is commonplace.

But in a reversal of fortunes it now appears that large Indian companies are actually now themselves outsourcing - to U.S. shores.

Large corporations that have boomed in India amid the country's nimble economy have been drawn to the U.S. where unemployment has soared.

More:
http://www.mailonsunday.co.uk/news/article-1389963/Indian-firms-look-U-S-cheap-labour-outsourcing-goes-circle.html

[OHdem10]

1. Ain't Globalization(poorly managed by US) just Grand.

Will the unemployment problem disappear when
the mean average income in US is 20 K annually?
We will then be "competitive with the Third World".

[HopeHoops]

2. I was just talking with my dad about this yesterday. Workers in India aren't stupid. They know...

...how to use the Internet and find out what Americans are making. While it had been true that they were paid far less, they started demanding more equal salaries. His company tried outsourcing but found it was difficult to locate a reliable company in India. The demand for qualified workers was out-pacing the supply and a lot of companies, including his, ended up with people who were hired on the criteria "can you grunt?"

Wages have dropped significantly here in the states and in many ways the two forces have equalized things. What is weird is that US companies are still GOING to Indian companies when many of them are simply turning right around and going to US phone farm companies. Usually the US workers don't even know that they are really working for an Indian company. Why don't the US companies go directly to the US phone farms?

[dmallind]

3. Tata for one has employed thousands of Americans for years, and not low pay types either.

The outsourcing picture is always portrayed one way in the media and even moreso DU, with US-based companies building factories and hiring elsewhere. And indeed last time I looked US companies had invested about $3.7T in foreign production - a staggering sum.


Of course $2.6T is also a staggering sum, and that's how much foreign-based companies had invested in US production at the same time. A slightly less staggering sum, but nothing to sneeze at. US employment at foreign companies is nothing new.

And no, I work for a US company, to my knowledge never worked for a foreign one here. Interviewed with a few though, and do business with several.

[daggahead]

4. Tata also has some really shady business practices ... n/t

[dmallind]

5. A trait not unheard of among US companies, or German, or Tanzanian.....

Does that change the employment numbers or investment?