WTF is reverse outsourcing you say?

Discussion in 'Current Events' started by DKSuddeth, Apr 8, 2004.

  1. DKSuddeth
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    DKSuddeth Senior Member

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    http://www.hinduonnet.com/thehindu/holnus/006200404081701.htm

    Infosys reverses outsourcing trend
    Bangalore, April 8. (AP): Infosys Technologies, which has risen to become the country's second-largest software maker thanks largely to outsourced work from the West, plans to reverse that trend by investing US$20 million to create nearly 500 consulting jobs in the United States.

    The company has set up a subsidiary in Fremont, California to provide business consulting to American corporations. The new company, Infosys Consulting, has begun ``aggressive hiring in America,'' Infosys chief executive officer Nandan Nilekani told reporters Thursday.

    ``As we are looking to expand our global footprint, we are creating local employment in the countries we operate,'' he said.

    In the first year, the new firm will hire 75 experienced business consultants, with plans for a total of 500 hires within the next three years.

    While the United States has lost thousands of jobs to low-wage countries such as India in a practice known as offshore outsourcing, the investment by Infosys shows outsourcing can also generate new jobs in the United States - though on a smaller scale, Nilekani said.

    The company's American employees would advise U.S. corporations on improving their efficiency by embracing outsourcing and moving work to Infosys' offices in India.

    Hiring Americans would help understand the needs of the clients and industry trends better, Nilekani added.

    Infosys, which employs 23,000 people, offers software development and back-office financial transactions for companies abroad. In the fiscal year ending March 31, it is expected to surpass total revenues of US$1 billion for the first time.

    Infosys Consulting will also be opening offices in other countries later on, but Nilekani declined to say where.

    Indian outsourcing companies have previously set up offices in the United States, but they have been largely restricted to marketing and have created very few jobs.
     
  2. rtwngAvngr
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    rtwngAvngr Guest

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    See. We allow the companies to profit from cheap labor, they must reinvest some of those profits in American located workers, just to properly service that market. We're still a vast and important market, and luckily for us techies, when people are planning something as important as critical IT systems, they like a face to face and handshake. To get these jobs, technical skills will not be enough, we must be good at instilling confidence and discussing overall vision in context of the business plan. Raw, planned out, programming work, repetitive database calls and such, can be outsourced. Or you will be deployed on projects where there is no time to ramp up a foreign team of programmers, fire fights, failed projects that must not fail. etc. Nightmare scenarios. That can be fun for a while.
     
  3. cptpwichita
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    cptpwichita Member

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    That sure is nice of them.Seriously though does this make up for the 25% of tech jobs(alot are information technology jobs) that will be outsourced by 2010 with india the biggest winner.India pays approx. 1/16 in some jobs that were previously in the u.s. and companies are bringing people over from India and having american workers train them and then lay those american workers off.yahoo news has had several stories as well as national news programs.
     
  4. remie
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    remie Member

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    There are actually a large number of American jobs created from insourcing from foreign owned companies. While this may not stop the bleeding of tech jobs overseas, they are creating jobs nontheless. Further, the jobs created pay better than the average salary paid by US companies.

    http://hillnews.com/news/030904/insourcing.aspx
     
  5. cptpwichita
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    cptpwichita Member

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    what will the job market look like in 20 years?
    what economic sectors will be strong?

    1.mining
    2.manufacturing
    3.agriculture
    4.service
    5.sales

    don't you need a strong manufacturing base along with mining and agriculture to provide for service and sales jobs?Even then alot of the white collar services such as i.t. will be gone overseas.
    or maybe we are just counting on...

    6.government jobs
     
  6. cptpwichita
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    cptpwichita Member

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    Then again alot has to do with taxes,environmental restrictions,health and safety standards,trade policy,unions,and education of the labor pool for companies to decide where to produce their products.Other countries are becoming more and more attractive to u.s. companies and a neccesity because the companies competition is or will be moving to gain the advantage and steal the market share from those who decide to stay in the u.s.
     
  7. rtwngAvngr
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    rtwngAvngr Guest

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    Yes. I don't know why the libs aren't on board with the huge bureaucracy it will take to rule the world (see PNAC). They usually love these kinds of governmental banquets.
     

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