It was a mail titled "The jobs aren't coming to US" I read today morning. The punch line was the statement of Intel's CEO. He admitted that new jobs are being created but the CEO's are making it sure that they are in India, China and not in the United States of America.
The New York Times estimate : millions of jobs have been moved offshore since March 2001. Barret Gartner predicts that one of the ten tech jobs will be moved offshore by the end of the next year and half of them will be skilled engineering positions.
Now the mostly affected group by this decision will be obviously Middle Class Americans. This is because almost all of their jobs are been outsourced. Thus, a mere engineering degree in America nowadays will no longer guarantee employment.
The companies like Intel,IBM, Microsoft do a lot of outsourcing in Asia . The basic reason behind this outsourcing is the cost-reduction. We all know that developing a particular software sitting in Seattle's will definitely cost more than doing the same in Pune. In fact, a large share of income of Indian software firms come from these outsourced products. Even if we are seeing this trend these days, I have some doubts.
If we look at IT giants in India, we can conclude that major part of there income comes from services. As opposite, if we look at the successful companies in USA, we will find that they had been founded out of some "core idea". Now by core idea, what I mean is there is certain concept running behind there foundation. Look at Google, it was the paper The Anatomy of Large-Scale Hypertextual Web Search Engine that made the web-search so easy and a high selling concept. If we look at Apple, the story is no different. This is the thing which the Indian IT giants are lacking of. Surely, there are some products in market by Infosys such as Fiancle. But if we start counting, then the list is not unending.
All the Indian companies need is the new concept that is purely original. Of course there are some startups who are putting their brains in and are competing to Giants of Silicon Valley. But if we look at the harsh competition, we need some supporting hand. So, instead of looking at Outsourcing blindly, we should make up the right guesses and take necessary actions. The Indian firms should not only develop outsourced products but also start building something that is completely new and yet untouched. That will be the beginning of a new era where we will have our own revolutionaries like Bill Gates, Steve Jobs, Lawrence Page, Sergey Brin.
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