Thursday, June 15, 2006


U.S. Tech Firms Downsize In India

Sun, Apple, Intel, Seagate and other American high tech firms have begun downsizing in India, creating job security fears among the nation's IT work force. These firms are downsizing in the United States as well, of course - but the thrust is perhaps more global now than it had been in previous cost-cutting campaigns. Folks overseas must remember that when they take a franchise on American money and American business, good old American corporate decimation will also become part of the bargain. One problem with India may be their success in the outsourcing market. Indian techies were - certainly initially - paid very much less than their notoriously flabby and dull-witted American counterparts. However, it was projected even at the start of the latest outsourching push some years ago that, with all the costs factored in, an overseas Indian techie cost an American firm only about 22 percent less to hire and retain. As the outsourcing business has grown in the last five years, so has the demand, and Indian techies make more dough than they used to. They're not so impoverished and downtrodden any more. Thus it is time to downsize them, but maybe the consequences of this subcontinental "shock to the system" won't be all bad. Our sincerest hope is that workers overseas will learn to empathize with their American peers and help found a global movement for "white collar rights".

"IT firms begin downsizing in India" from SiliconIndia

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