Outsource This ! ! ! ! ! !
I am paying close attention to recent magazine articles regarding U.S. jobs moving to Bangalore, India. IBM is currently on a hiring binge in India!. IBM employs about 39,000 people in India, up 70% from 23,000 a year ago. It also indicates that IBM will have at least 55,000 workers in India by next year. This will be almost 20% of IBM’s entire workforce.
IBM recently announced it would spend $200 million a year on a Bangalore development center to centralize work on developing software systems that consultants can resell to customers in many industries. IBM has announced the move of all of IBM’s new Global Solutions Delivery Center in Bangalore. Indian workers at the Bangalore center will apparently design new ways in which businesses can combine with other technologies, such as processing for banks and inventory systems.
Indian citizens are coming to the U.S. and receiving masters degrees in computer technology and computer science. They will work in this country for several years and gain valuable experience in their area of study. Companies, such as IBM, will then hire these individuals for jobs requiring Indian citizens to return to India and work at an outsourced job.
Many jobs currently outsourced to India are now becoming higher end positions. IBM employs about 150,000 workers in the United States but has quietly eliminated a number of domestic positions in recent months. It has lowered its costs in global services, improving gross margins about 3 percentage points last quarter, to 27.4%, compared with a year ago.
IBM says that its customers will get two main advantages from the move to India: costs will be lower, and greater centralization will speed design and innovation. India’s biggest problem now is finding enough workers to fill the positions eliminated from the U.S. Indian workers graduate from their own universities but many have a poor command of English, or refuse to relocate to India’s tech centers. Of course, pay for high tech lobs are a lot lower in India than here in the U.S.
With the number of unemployed tech workers currently in the United States, why can’t we put as much effort into training our people. I honestly believe that if we refuse to wake up and smell the roses, U.S. companies will eventually outsource our entire country and leave our future generations in precarious positions.
Companies need to find ways to make jobs more flexible and interesting for older IT pros. Many baby boomers in the U.S. will be retiring in a few years. I have read a lot of articles lately regarding how employers are worried about an impending exodus of retiring boomers. These companies are looking for ways of keeping older workers on the job longer. This contradicts the stories we are hearing about jobs outsourced to India. If this is truly a concern, it is my opinion that we need to retrain older employees and provide them the jobs that are currently going oversees.
