Wednesday, January 04, 2006

 

Outsourcing to India will help USA

Here is an article on about this subject. I remember reading something similar to what Dr. Charles Weelan says in a right wing magazine. I guess the effects of outsourcing is not completely measurable, but I feel that the long term effects would be to bring equilibirium to the cost of the resources. In a way, few (or many) years from now, an Indian software engineer would cost the same as the American counterpart. Because you cannot make a particular region get on to a wealthier life-style and have them earn the same salary as before. Already, the high end talents are cost almost the same between India and USA. For instance, an IIT and IIM graduate in India makes around Rs. 80,000 - Rs. 150000.00 a month ($1800 - $3300.00) + lots of tax deductible perks. In the US a similar candidate would cost anywhere from $5000.00 - $8000.00 per month. The motivation for these guys to come to the USA for money is not there anymore. Because, $1800-$3300 in India can buy a lot more than $5000-$8000 in the US.

Comments:
Yes, I think that outsourcing will indeed be beneficial to both countries. I mentioned a few of the reasons in my recent blog article. http://airmikey.blogspot.com
 
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