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Bangalore Beats Silicon Valley 779

An anonymous reader writes "The inevitable has happened. Bangalore, which grew under the shadow of America 's Silicon Valley over the last two decades, has finally overtaken its parent. Today, Bangalore stands ahead of Bay Area, San Francisco and California, with a lead of 20,000 techies, while employing a total number of 1.5 lakh engineers."
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Bangalore Beats Silicon Valley

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  • Lakh? (Score:2, Interesting)

    by Anonymous Coward
    1.5 lakh engineers.

    What's a lakh, and why do they need engineers?
    • Re:Lakh? (Score:5, Informative)

      by jazzyseth ( 607277 ) on Tuesday January 06, 2004 @11:45AM (#7891441)
      One entry found for lakh.

      Main Entry: lakh
      Pronunciation: 'lak, 'lak
      Function: noun
      Etymology: Hindi lAkh
      Date: 1599
      1 : one hundred thousand
      2 : a great number
      - lakh adjective

    • a lakh [reference.com] is 100,000.

    • Re:Lakh? (Score:4, Informative)

      by Tirel ( 692085 ) on Tuesday January 06, 2004 @11:47AM (#7891478)
      magic% dict lakh
      3 definitions found

      From Webster's Revised Unabridged Dictionary (1913) [web1913]:

      Lac \Lac\, Lakh \Lakh\, n. [Hind. lak, l[=a]kh, l[=a]ksh, Skr.
      laksha a mark, sign, lakh.]
      One hundred thousand; also, a vaguely great number; as, a lac
      of rupees. [Written also {lack}.] [East Indies]

      From Webster's Revised Unabridged Dictionary (1913) [web1913]:

      Lakh \Lakh\, n.
      Same as {Lac}, one hundred thousand.

      From WordNet (r) 2.0 [wn]:

      lakh
      n : the cardinal number that is the fifth power of ten [syn: {hundred
      thousand}, {100000}]
    • Re:Lakh? (Score:3, Funny)

      by KoolDude ( 614134 )

      those lakhy engineers !!!
  • by ChaoticChaos ( 603248 ) * <l3sr-v4cf@NOspaM.spamex.com> on Tuesday January 06, 2004 @11:42AM (#7891396)
    It's amazing that during an election year that I've yet to hear one thing from Dean or Bush about this. Is everyone bought and paid for?

    I honestly think that a lot of the current commentators are dead on when they say that this is a "fad" and this will eventually balance itself out. Wait until some corporations get a gut full of having their code halfway across the globe. Most companies aren't willing to let you work at home and yet they're willing to hire hoards of people they'll never meet to write their code? Heh. This will right itself eventually.

    • by squaretorus ( 459130 ) on Tuesday January 06, 2004 @11:44AM (#7891430) Homepage Journal
      Wait until some corporations get a gut full of having their code halfway across the globe

      Yeah - they'll move to India too. You can get a seriously big house there, great food, and your kitchen staff won't be a: Expensive, or b: Illegal.

      I'm guessing the tax advantages are pretty significant too. And you get to watch elephant polo!!!
      • Yeah - they'll move to India too. You can get a seriously big house there,

        Hello, where did you pull that out of? India has over a billion people with far less the area of the US. There aren't any big houses here except for 100 year old bungalows. Few people have houses with more than 2 or 3 rooms with barely enough space to put a couple of beds.

        great food,

        I'm with you :)

        and your kitchen staff won't be a: Expensive, or b: Illegal.

        Aren't you forgetting c: Unethical?

        I'm guessing the tax adv

        • Actually, I think it is elephant soccer, not polo.

          But the elephant soccer is in Thailand. At least, some elephant soccer is played in Thailand.

          There was an article about this a few years ago in a Sports Illustrated Swimsuit Issue.

          A google search for elephant soccer also produces some hits.

          For example, from The Surin elephant roundup [worldkidmag.com]:

          Hundreds of elephants attend the traditional yearly roundup in November; most are related, so it?s a big family reunion. They no longer work at logging, so many are e

          • Actually, I think it is elephant soccer, not polo.

            Elephant Polo [elephantpolo.com] is now played in Nepal, Sri Lanka and Thailand (and in India in colonial times). The players ride on elephants (directed my mahouts) and hit the ball with a (very long) mallet.

      • by glenrm ( 640773 ) on Tuesday January 06, 2004 @12:15PM (#7891849) Homepage Journal
        You also have to hire some armed guards, at least that is what I saw in a show about the people making money in the Indian film industry.
        • by frodo from middle ea ( 602941 ) on Tuesday January 06, 2004 @03:27PM (#7894020) Homepage
          One of the main reason for this is the indian film/music industry is not syndicated by big studios like hollywood.

          And therefore the money required to make big budget movies is often put in by underworld mafia. Ofcourse this is all covered up and the money is shown as comming from big time industrialists and stock brokers, but even a kid in india knows the real truth.

          And when you involve underworld, they want a hugh piece of the pie, and sometimes entire pie. Whenever there is a financial dispute between the producers and director/actors etc. it is often setteled by mafia. Mafia in turn gets (demands) hugh amount of money from the big shots for what it calls protection money.

          There have been incidents where rival direcots/actors/music composers have hired the mafia to threaten/beatup or even kill their counter parts.

          The history of mafia's association with bollywood is not older than 30 years. Around the 70s time, when bombay (the core of indian movie industry), was the hottest thing for real estate development. There was a lot of money to be had in urbanization and construction builders often used local mafia (small time crooks) for dirty works , such as forecd labour, evicting tenants , suppressing any kind of opposition. etc.

          But the maifa was very disorganised back then, and the construction company owners were the ones who called the shots. But soon the indian maifa much like the turn of the century american mafia , organised and turned crime in to a syndicate. This gave rise to some really notorious gangs in bombay and some fierce gang wars.

          By mid 80s the , crime syndicate turned their attention to the movie industry (Although they were always associated with bollywood since the 70s). Initially the relationship between the movie industry and maifa was a win-win situation for both, but soon maifa wanted more and more . It got progressively worse in 90s, where there were a lot of incidents of movie people being threatend/shot at by maifa. By then the mafia had shifted its base from bombay to outside of india. But a large supply of unemployed youths in the country ment a continuing domination of the maifa , even when the strings were pulled from outside the country.

          Bombay police which were once considered second best only to scotland yard, earned a lot of bad reputaion in this time for their incapability to stop the crime waves. This led to the encounter era, where the police were on a city cleansing mission. Lots of small time gangsters and gang members were arrested, and then shot by the police in a staged escape. Police claimed the culprits were trying to escape while the human rights organisation screamed murder.

          Currently it looks like there has been some equilibrium between the maifa , the film industry and the police. Also lot of film makers are shifting away from bombay to other places.

    • by Puls4r ( 724907 ) on Tuesday January 06, 2004 @11:49AM (#7891507)
      I think you may be operating under the illusion that this is something that Bush is against. I'm sorry, but his party and his political views support free trade. India and other Asian countries are simply doing what Mexico, Taiwan, and China have been doing for years in other markets. Why do you think it's suddenly so earth shattering? It's a natural progression of a commodity to move to markets with lower overhead costs. Like pay rates.
    • No way. (Score:5, Insightful)

      by YanceyAI ( 192279 ) * <IAMYANCEY@yahoo.com> on Tuesday January 06, 2004 @11:52AM (#7891556)
      I'm sure that textile and factory workers felt the same for awhile. I hate to sound like a Marxist, but welcome to market driven, capitalist America. They're cheaper, they work longer, they demand less.

      Those jobs aren't ever coming back and neither will these.

      • Re:No way. (Score:5, Insightful)

        by Joey7F ( 307495 ) on Tuesday January 06, 2004 @12:03PM (#7891702) Homepage Journal
        You forget one thing though...they aren't cheaper. A 20k salary in India is pretty damn good (Some friends tell me it is like six figures over here), well, eventually the disparity will disappear and they will demand more salary. With US programming jobs disappearing and starting salaries coming down, at some point companies will have to say "Wait, how much are we saving exactly?" It has happened with call centers...

        --Joey

        • Re:No way. (Score:4, Insightful)

          by Greyfox ( 87712 ) on Tuesday January 06, 2004 @01:39PM (#7892777) Homepage Journal
          No, then the companies will just move to the next low-wage country, lather, rinse and repeat, leaving tens of thousands of indian programmers out of a job.

          Most of the IT industry is no longer about doing cool things with computers. It's no longer about understanding the customer's business needs and making the computers do what he needs them to do. It's all about the money and too many people are in it just for the money, bringing no understanding of the industry with them. Oh they make noises like they know what they're doing, but they don't.

          Start a company that avoids all this management masturbation, gives its people the power to solve problems without having to go through 14 layers of buerocracy and that actually understands its customers business needs and you'll end up owning the market, whether or not you're operating from the USA, India or from East Outer Mongolia. And incidentally you might make a buck or two at it.

    • by Pionar ( 620916 ) on Tuesday January 06, 2004 @11:54AM (#7891586)
      Dean has often commented on this. One of his main slogans is, "We should be exporting American products, not American jobs." and has often stated that his plan of including workers' rights policies in trade pacts will stem the tide of the unethical offshoring of labor at pennies on the dollar.
      • Easy to say to export stuff, not jobs. But what will those export markets do when they find that they are welcome to buy american stuff, but are heavily taxed, or even forbidden, when trying to export stuff into the US?

        Don't forget that for many of the very largest companies, their home market - no matter which country they reside in - is not their largest. If push comes to shove, IBM would likely rather lose US contracts than all non-US ones.

        Oh, and workers rights? What will the US do when Europe insists
    • by Magnus Pym ( 237274 ) * on Tuesday January 06, 2004 @12:16PM (#7891882)
      If you think times are bad, just wait till the election is over. The Republicans have struck deals with several dozens of corporations to postpone their outsourcing decisions till the 2004 elections are over. Expect to see wave after wave of US layoffs in the wake of the elections... especially if Bush wins again.

      There was an article in the WSJ last month about exactly this. Apparantly, huge companies like IBM and Microsoft are keeping a low profile in India. MS has gone so far as to remove their names from the buses that they use in India to ferry programmers back and forth to work.

      Magnus.
      • While I find this plausible, I find no easily locatable sources for it. It wasn't in the first 3 pages of links from Google under what I thought a plausible set of search links.

        Now I don't follow the WSJ, so I would probably not have seen it if it were there. OTOH my default assumption would be that some reference would have shown up in Google. So an appropriate link to the story would be appreciated. (And no, lexis doesn't count as an appropriate link.)
    • by Glock27 ( 446276 ) on Tuesday January 06, 2004 @12:17PM (#7891893)
      It's amazing that during an election year that I've yet to hear one thing from Dean or Bush about this. Is everyone bought and paid for?

      Sadly, this appears to fall into the "globalization" groupthink. It's a "free market economy" therefore it must be good...right?

      Since we've lost all kinds of other industries overseas (for instance, steel production) this latest trend is taken as simply the latest incarnation. No one seems to be thinking "gee, we were supposed to lose the manufacturing jobs while the high tech jobs stayed here".

      There are many stupid things about outsourcing IT jobs. First of all, 50% of all software projects failed before outsourcing became prevalent. I'm personally sure that percentage will be significantly higher with outsourced work. Second, U.S. companies are paying to train large foreign workforces to compete with them down the road. Third, the lack of high-paying tech jobs here in America will ultimately hurt the economy, as well as causing many skilled tech workers to move to non-tech positions. One wonders if this new "lack of tech workers" will be used to justify new H1-B visa bills as the economy heats up again.

      In my opinion, the whole debacle arose from executives being annoyed over the high cost of tech labor - they didn't understand that tech is hard, requires lots of education, and should be compensated accordingly. It's sad that contract software rates have fallen to about 50% of their level of a few years ago. It also looks like permanent position salaries have been impacted.

      I'd like to see a few executive teams outsourced to India...then we'd see some real screaming about the practice.

      This will right itself eventually.

      I'd like to think so, but we'll have to see...

      In the meantime, classified government work looks like the best bet as far as job security goes - that will never be outsourced.

    • by dnoyeb ( 547705 ) on Tuesday January 06, 2004 @12:19PM (#7891926) Homepage Journal
      Yes, but what is balance? Note that America has an abundance of the world's wealth, and India's region has an abundance of its poverty.

      Balance will be when much of the wealth in America is shifted to India and the like. I know this is the right thing to do. However, the problem is the wealth shift will be removed from the middle class in the US, and as usual the Rich have well protected themselves and will still grow richer...
      • by enjo13 ( 444114 ) on Tuesday January 06, 2004 @03:07PM (#7893765) Homepage
        I think your wrong.

        Your falling into the trap of thinking that wealth is finite, or at least constrained at its current levels. This is simply not true. The amount of wealth in the world can (and does) grow. In terms of overall 'wealth' (see a good economics text for a description of what exactly wealth is:) ) there is many many times more wealth today than just 100 years ago. The same will likely hold true moving forward (there is likely some limit to how far this can grow, but no economists can even begin to agree on what that limit is).

        The point of this is that as India becomes more wealthy, they will begin to contribute more and more in terms of innovation and products back into the overall economy. This will do two very important things. 1) Create new markets for companies (including those in the US). After all, the workers in India will have more wealth and will begin buying more products. 2)Create demand for more services within India itself (once again, more wealth to spread around) which will drive the costs of employment up towards U.S. levels. In the end, the amount of overall wealth has increased, and the amount of wealth within the United States is at worst basically unaffected and more likely actually increased because of the new markets that have been opened up.

        There are ways to defeat this. Closed trade policies are the quickest. By adopting protectionist policies the U.S. can effectively isolate itself from these new markets, likewise India could do the same in an effort to protect it's new found wealth. The governments role SHOULD be to protect equal OPPORTUNITIES for trade between India and the U.S. (thus encouraging growth in both countries), rather than attempting to protect the RESULTS of that trade.

        This is one case where everyone can hope to win, rather than having exactly 1 winner and a bunch of losers.
    • by rifter ( 147452 ) on Tuesday January 06, 2004 @12:20PM (#7891945) Homepage

      I honestly think that a lot of the current commentators are dead on when they say that this is a "fad" and this will eventually balance itself out. Wait until some corporations get a gut full of having their code halfway across the globe. Most companies aren't willing to let you work at home and yet they're willing to hire hoards of people they'll never meet to write their code? Heh. This will right itself eventually.

      You'd better hope so, buddy. Personally I am pretty worried; perhaps I should brush up on my Hindi. Bollywood just beat Hollywood in production and also has announced that it will allow people online to market their products for free whereas Jack Valenti has decided he does not want such help. Now Bangalore has surpassed Silicon Valley in number of jobs but NEVER in cost of living. With even US firms shipping jobs to India like mad, all that is left to light this match is a batch of new Indian software products to compete with US products.

      Meanwhile our IP laws mean that it is very undesirable to work on new tech in the US because it will either be shelved, owned by a corporation, or some other company with a patent will make sure you can never do it. But these problems do not exist in India. Neither do they put people in jail for developing crypto software and revere engineering for interoperability. Free Software has no stigma in India and is used where practical unlike in the US where we would rather waste money than do it right.

      India is a mixed economy and I've never known an Indian to be afraid of being called a Communist, or for that matter to use the term as a pejorative. Again, collective or community economy is used where practical and private industry is used where it makes more sense. None of this business of endangering the electric power infrastructure in the name of corporate profits.

      If there is anything holding India back now, it is government corruption, civil strife, and the struggle with Pakistan. But who knows, maybe they will get that all down to a low simmer so it does not disrupt their blossoming economy. Remember, they only won their independance less than 60 years ago. These things take time.

    • by jordandeamattson ( 261036 ) <jordandm@nosPAM.gmail.com> on Tuesday January 06, 2004 @12:28PM (#7892058) Homepage
      My observations below come from my experience managing a distributed software engineering organization with presence in San Jose, CA and Delhi, India. I have a total of about 25 people working for me with have in the US and have in India (think of that poor guy who is split between the two countries - that must be me with all of my travel between the two!).

      Let's face it will swing back to balance over time.

      Right now, there is an incredible head-count cost advantage to moving a project to India, with many companies doing. The drive to offshore to India is driving demand there heavily. It is difficult to hire quality people, wages are going up quickly, people are jumping between companies, and it is much like things were in Silicon Valley during the bubble years.

      What we will see, is that the head-count cost advantage, over time, will narrow and the other costs of going off-shore will come into play (coordination, latency, frequent travel, etc.). As this happens people will become more and more selective about what goes and what stays.

      In the long-term, I think "offshore outsourcing" will fade to a degree, while "internal offshoring" (building distributed development teams within your company. I believe that the trend towards distributed deveopment organizations that take advantage of cost differntials and cherry pick the best talent in various geographies (as hard as it might be to believe, not everyone wants to live in Silicon Valley or the US for that matter, I have an excellent manager, with US Citizenship, orginally from India who moved back) will continue and accelerate.

      What does this mean for us in the US? It means that we will have to go up the "software value stack" and work at a higher level. If a task can be done somewhere else for less cost, it wll be. This mans that we have to be constantly working to be at the cutting edge and have the breadth and depth to add significant value and coordinate project in these distributed teams. In a sense we each have to take the role in our projects that Linus has in driving the development of Linux.

      If it is any comfort, realize that we aren't the only ones feeling threatened. My friends in India are all worried and looking over their shoulders at places like China, Vietnam, Ukraine, etc. wondering how they will move to higher and higher value-add activities over time.

    • He had india doing his and the republican parties' phone fund raising.

      Bush falsely offered protection for the steel workers knowing full well that EU/Japan/UN would force him to obey our agreements from the 80's. He had nothing to lose.

      I would guess that Dean will not comment until he realizes that he has to say something. That may be interesting to hear. Do you argue for an overall world economy that will ultimatly help you or do you try to protect local high-end jobs?
      I strikes me that our leaders will
  • But will it last? (Score:5, Interesting)

    by TheWart ( 700842 ) on Tuesday January 06, 2004 @11:42AM (#7891399)
    It will be interesting to see how long it can sustain its growth to prevent the same kind of retraction that hit Silicon Valley.
    • Re:But will it last? (Score:3, Informative)

      by N3WBI3 ( 595976 )
      Managed Economy, India does much to keep their wages low..
    • Last? (Score:3, Insightful)

      by andy1307 ( 656570 ) *
      Name 5 great software products to have come out of Bangalore. Last!! It hasn't begun.
      • Re:Last? (Score:5, Interesting)

        by slamb ( 119285 ) on Tuesday January 06, 2004 @11:54AM (#7891584) Homepage
        Name 5 great software products to have come out of Bangalore.

        Name five great software products that you're sure haven't come out of Bangalore.

        The companies aren't based there, but enough of the work is actually done there that you need to put some actual thought into answering that question...

        On the other hand, I don't have a high opinion of Bangalore-as-Silicon-Valley, either. I just don't think you'll get anything really remarkable out of people under those conditions. And if there's one thing the world doesn't need, it's more mediocre programming...

      • I know one (Score:5, Insightful)

        by nnnneedles ( 216864 ) on Tuesday January 06, 2004 @12:20PM (#7891947)
        hotmail.com

        At least it was an indian guy who created it. Sold it to microsoft for $400 million..

        Bash it all you want, hotmail was pretty revolutionary and is probably used by hundreds of millions of people..
    • Re:But will it last? (Score:3, Interesting)

      by arvindn ( 542080 )
      As an Indian I can tell you that a Bangalore version of the dot bomb is unlikely to happen because Indian entrepreneurs are considerably more conservative/cautious than their American counterparts.
      • Re:But will it last? (Score:3, Interesting)

        by miu ( 626917 )
        As an Indian I can tell you that a Bangalore version of the dot bomb is unlikely to happen because Indian entrepreneurs are considerably more conservative/cautious than their American counterparts.

        That attitude is part of the reason America is so much better at creating wealth than the rest of the world. Non-Americans love to point at our crashes and failures, but we have so much energy and try so many things (and plenty of the things we try are extremely stupid) that we almost can't help but have a lar

    • It will be interesting to see how long it can sustain its growth to prevent the same kind of retraction that hit Silicon Valley.

      There are 250 Million people living in the US. There are a limited number of IT people. Hence, higher wages and the extensive use of H1B Visas.

      There are over 1 Billion people living in India. And, according to my Indian-born Co-workers, they have more college educated IT workers than any other Country in the world. Hence, the supply of skilled workers is much higher. Althoug

  • by mesozoic ( 134277 ) * on Tuesday January 06, 2004 @11:43AM (#7891415)
    ...a lakh is 100,000.
  • by Anonymous Coward on Tuesday January 06, 2004 @11:44AM (#7891428)
    "Bangalore stands ahead of Bay Area, San Francisco and California, with a lead of 20,000 techies, while employing a total number of 1.5 lakh engineers."

    1.5 engineers hey. Always wondered where that 0.5 kid from the average 2.5 family got to. Engineering.
  • How many of you have dealt with these Asian techies and have been on the phone longer due to a misunderstanding between yourself and a techie?

    Rather Frustrating!

    Maybe there's a learning curve, but if I had my druthers, I wouldn't put up with it.
    • show of hands.. (Score:3, Informative)

      by andy1307 ( 656570 ) *
      How many people know the difference between tech support and IT?
    • So how many of their languages do you speak?

      Which puts you in exactly what position complaining about other peoples foreign language skills?
    • Show of hands please: how many of you have had to deal with these American techies (managers?). Is it possible to understand those "real nice" redneck boys down in the deep south? Very frustrating! I spend too much time on the phone because of them.

      Interesting point that keeps cropping up in my meetings with Americans: tabling something in a meeting means exactly the opposite there. I guess we all have to learn how to communicate better with each other.
  • Sand Hill Road (Score:3, Insightful)

    by bstil ( 652204 ) on Tuesday January 06, 2004 @11:45AM (#7891450)
    Is this an New Year's/April's Fool article?

    I don't see the folks on Sand Hill Road moving to India very soon.

    Also, the article is from India Times, so expect some bias.
  • Bangalore happened at lightning speed because of the Y2K problem, where America chose to depend on India as it was thought to be a one-off situation.

    With the result that Bangalore took off with a bang. Y2K went out with a whimper.

  • Interesting... (Score:5, Insightful)

    by pubjames ( 468013 ) on Tuesday January 06, 2004 @11:50AM (#7891523)

    A couple of years ago on a train journey to Mumbai I had a long conversation with an Indian software engineer. Once he'd got his University degree he got a job in Silicon Valley, but only stayed a couple of years because he realised that although salaries are lower in India he would actually be a lot better off in India because your dollar goes a lot further there. In India he could actually afford servants - a maid, cook etc. as well as a big house with a swimming pool and car. So if you read this type of story and think of hundreds of poorly paid Indians in sweatshops hacking out code, think again.
    • Re:Interesting... (Score:3, Interesting)

      by Metaldsa ( 162825 )
      So all I need to do is move to India and I can have my own maids, cooks, and other servants? I'm getting my plane ticket right now! :)

      Seriously, it would be interesting to see average income in both areas because it would shed a lot of light. Not your friend's pay or some millionaire in Silicon valley but the county's average income.
    • Re:Interesting... (Score:5, Interesting)

      by TheSync ( 5291 ) on Tuesday January 06, 2004 @12:12PM (#7891822) Journal
      All of my "middle class" relatives in El Salvador have at least one live-in maid, some have several as well as a driver and gardener. Interestingly enough, some of my relatives there work in the computer industry.
    • Re:Interesting... (Score:3, Informative)

      by Anonymous Coward
      He may have felt that way but I rather doubt that it's true. I'm building a development team in India and can tell you the following (all below in US $):

      1. Wages range from $5 to $10 per hour for developers, senior developers, and architects.
      2. Stuff from India is cheap (e.g. maid = $100/month) but foreign stuff is just as expensive as elsewhere. For example, a Compaq computer is still about $1,000. A low-end Toyota is still over $10,000. There is however an India made car that's around $5,000. (Based
    • Re:Interesting... (Score:3, Informative)

      by ashayh ( 636057 )
      A maid and a cook is good for you.
      But do you know how much the maid/cook will get paid? In a big city, where wages are higher, you would pay them Rs 500 to 1000 .. thats 10-20$. If the maid works many hours in 3-4 places, she'll get 60-80$ a month if shes lucky. At this rate, when does her son get schooling, decent college, University etc and become an engineer ?
      So while the dollar does go further, it doesent do the vast majority of Indians who are farmers, labourers, servants, etc. ANY good.
      When w
  • so what? (Score:3, Insightful)

    by Dionysus ( 12737 ) on Tuesday January 06, 2004 @11:50AM (#7891524) Homepage
    I'm sorry, but so what?

    I'm not an American (Norwegian if you must know), but I have worked in Silicon Valley. Like the saying goes, it's not the size, but the quality. Yes, the best engineers in India is probably comparable to the best in the US and the rest of the world, but I find that the average engineer in India is worse than the average in the US.
  • by AKAImBatman ( 238306 ) <akaimbatman@gmaYEATSil.com minus poet> on Tuesday January 06, 2004 @11:50AM (#7891537) Homepage Journal
    And I care because... why? At its height, Silicon Valley/San Fran contained thousands of individuals hoping to get rich quick by pretending to be techies. Now India has thousands of individuals hoping to have a better life by pretending to be techies. There's nothing new here. Move along.

    • The difference is, our 'pretenders' were mostly liberal-arts-educated, self-taught-html types, and in India, they're more likely to be C coding, exposed to methodology, CS-degreed folks. Unlike the dot-com bubble, you can't get a decent programming job there without a CS degree. Some Indians I've met said that they couldn't even get interviews until they at least had a Master's.

      I'm not trying to flame anyone, as I have worked with a number of skilled American and Indian programmers and engineers. I'm not t
      • The truth is that an education does not make you what you are educated in. In my experience, having a degree has very little to do with being a good programmer. Good programmers have a drive that pushes them to master their trade. "Pretend" programmers may learn the concepts behind programming, and even understand how to make code work. However, they lack a true understanding of what the code is doing and why. They have no concept that the data structures and OS design courses they took, have a real purpose
  • by dada21 ( 163177 ) <adam.dada@gmail.com> on Tuesday January 06, 2004 @12:04PM (#7891709) Homepage Journal
    With the ability to get cheaper labor off short in the tech world, the prices for certain tech consumer goods (from software to DVDs to car computer brains) will fall, allowing prices to fall as well.

    This will allow the average consumer to spend more of their money on other items, including entertainment, debt reduction, maybe even more money towards a mortgage or a new car. Jobs moving to other countries is only good news -- I can only hope we see more of it as it will allow people here in the States to find new things to do with their overpriced labor.

    Maybe we'll even see that we don't deserve as much as we earn, and that we're not so special.

    Tibor Machan [lewrockwell.com] has a great article on Job Security and why this phrase is false. If you can not produce a desired product at a price that the buyers are willing to pay, you are not really producing anything but waste. American techs are paid way too much for what really has become a blue collar job in many cases.

    Just like tariffs on imported steel and imported sugar have destroyed jobs in this country (by making cars here too expensive, and even Fannie Mae chocolates has closed down today because sugar is too expensive), putting tariffs on imported tech software will do the same. Allow consumers of technology to decide what they are willing to pay. U.S. firms can even promote a "Buy American" program if people really care.

    I know I don't. I want to see prices fall on technology so I can focus my spending on other areas -- more dinners are local restaurants, maybe more concerts or theatre.

    Remember, the Living Wage [mises.org] is a MYTH.
    • With the ability to get cheaper labor off short in the tech world, the prices for certain tech consumer goods (from software to DVDs to car computer brains) will fall, allowing prices to fall as well.

      You're wrongly assuming that the price of goods is in any way dependant on the manufacturing cost. Price is dictated by market -- supply and demand. The only constraint is: if your manufacturing costs exceed the price, your profit margin is negative and your product is dead.

      There are a whole lot of produ

  • Economist article (Score:5, Interesting)

    by Infonaut ( 96956 ) <infonaut@gmail.com> on Tuesday January 06, 2004 @12:07PM (#7891739) Homepage Journal
    The Economist, as usual, has the goods. This article [economist.com] lays it out pretty clearly. Things are rapidly changing in India, but for only a small percentage of people.

    What I find most curious is the incredibly rapid turnaround in opinion seen on Slashdot. During the dot-com boom, everyone was happy to see Open Source, a truly global phenomenon, bloooming. But now I see this strange bifurcation of views. Open Source software created by people from all over the globe is still good. On the other hand global commerce, in which the lowest-cost providers of goods and services win, is being villified.

    So when a Chinese company (operating in non-democratic government) manufactures the inexpensive hardware that powers your gaming PC, that's fine. But when Indian programmers (operating in a democratic society) start beating out American programmers for jobs, there are some sort of insidious forces at work?

    When principals butt up against pocketbooks is the time when you see what people truly believe.

    • Re:Economist article (Score:4, Interesting)

      by Night Goat ( 18437 ) on Tuesday January 06, 2004 @12:24PM (#7891996) Homepage Journal
      I wouldn't call it a turnaround in opinion, just another facet of the "Slashdot hive-mind" that you didn't notice before. It's not like people on Slashdot were cheering before when their jobs were just starting to go to India. Open-source is totally different than international outsourcing.
    • Re:Economist article (Score:5, Interesting)

      by Valdrax ( 32670 ) on Tuesday January 06, 2004 @01:21PM (#7892603)
      What does Open Source software have to do with our (in the average case) closed-source programming jobs going overseas to people who will write closed-source code for our former companies for less money? Open Source is good. At least if I lose my job to OSS, I know that I have full (and free) access to what replaced me and I know that on the balance the world has been done good by making a quality product available for less and with more eyes capable of scrutinizing it for bugs. If I lose my job to outsourcing, I can see that the customer is unlikely to see a reduction in price (or bugs) for the product, and the market is favoring poorer labor conditions. Overall, the world has not benefitted by my loss, so why should I like it? In this latter case, my principles and my pocketbook are both in agreement that this is a bad thing.

      By the way, if you're of the opinion that Slashdot readers are fine with what makes Chinese hardware inexpensive, then you haven't paid attention to the articles on the failure of cheap parts, the hidden costs of poor labor practices, and the environmental impact of computing articles on Slashdot. I'd buy non-Second/Third World goods if I could, but there's honestly many place where you simply can't get an alternative.

      (Thanks for the article, though.)
    • I certainly don't have a problem with a globalized economy. That's not the issue. The issue is that local experienced workers are being replaced by remote inexperienced workers. It's the same dot.bomb stupidity where seasoned software engineers with more than a decade of experience were replaced by junior college dropouts who managed to have taken a summer class in Java.

      The current fad is to ship off the core innovative work to people with absolutely no stake in company. It would be like Ford and GM outsou
  • by GreenCrackBaby ( 203293 ) on Tuesday January 06, 2004 @12:12PM (#7891826) Homepage
    I've always wanted to post this in an "offshoring" /. article, but have always arrived late to the game.

    Firstly, a disclaimer: good on India. I hold nothing against them for accepting, with open arms, North American tech jobs as fast as CEOs rush to send them over.

    That being said, I believe we (ie. North Americans) are being fucking morons about this. We are willingly shipping them high skilled jobs so Mr. CEO can report a quick profit the next quarter. In the mean time, we are losing an entire generation of "junior" positions. I believe that will spell the end of software development in North America.

    My current job is that of a software architect. It is a high-skill job requiring very specialised knowledge in the area where we make software. I got to my current job by starting as a junior programmer at this company. After 3 years I was bumped up to "intermediate" developer. After 3 more it was a bump to "senior" developer. Now they think I know enough to design the systems I build.

    Two years ago my company opened an office in Bangalore (we have offices across the globe). All new hiring has been through that office, and they ship the programmers from India to various other offices for training on projects. In another years time, programmers in that India office will have performed enough implimentations to be considered "intermediate" developers. In a few more years they'll be senior, and in a few more they'll be in my position.

    As this is going on in India, all our own new grads will be working at Starbucks serving lattes, and will be left out of the loop.

    All for the sake of a quick stock boost. Good on India, shame on us!
  • by UnknowingFool ( 672806 ) on Tuesday January 06, 2004 @12:14PM (#7891842)
    anybody should be celebrating that they have more nerds than another place. It's like posting up a big sign that says:

    "Attractive Women: Stay away. Nerd Crossing"

  • by Perl-Pusher ( 555592 ) on Tuesday January 06, 2004 @12:18PM (#7891905)
    In the rush to globalization, the US has export most of it's manufacturing capabilities. Count how many products in your home are made in the USA.

    When we no longer produce anything of value here, what do we have to trade? One thing we can do is educate people, foriegn students continue to come to the US in greater numbers to learn. Another is tourism. How many Indian's want to vacation in Detroit? Our college costs keep rising to the point that it is becoming more and more difficult for the middle and lower middle class to get an education here. The middle and lower middle classes make up almost 70 percent of our population. Another thing we have is money lots of it. Not you or I, but the ones really pushing for globalization. The 1 percent of are population that controls most of the worlds wealth and now wants more. These people find a service economy great for them, the lower classes have and always will bow to their every need. In fact, if the cost of service employees gets to high, then they can always push for more immigration, it is especially easy to get haitian or mexican labor to replace those high priced citizenry. It helps to give them a california drivers license. Most of these individuals were born into their position. Do not think for a minute Bill Gates was born into a low or middle class family in the suburbs.

    By moving to a service economy where most of everything is imported, the middle class is left to struggle to maintain their status. More and more that is done with debt, easy credit for a good life now. Pay the rich forever.

    Globalization is great for up and coming economies, it was great for Japan, but they are now losing to Korea, Indonesia, India etc.

    The rich 1 percent would have you believe that this is all for the benefit of poor countries, ignoring the fact that when the labor costs and living standards rise in those countries, they'll be in the same boat. It will be a long time till we see programmers whose native language is Tutsi. But eventually they'll be a source of cheap labor too.

    So what we have in effect is the very rich deciding the middle class is not dependant enough so they have decided to take from the middle and give to the poor.

    Not exactly what Robin Hood advocated.

  • by Anonymous Coward on Tuesday January 06, 2004 @12:18PM (#7891911)
    I work in Silicon Valley for a very large tech company, and in December 02 I spent a month flying hither and yon throughout India visiting all the major tech companies, so I think I can reasonably compare the two tech cultures.

    Firstly, the big tech titans over there are ALL dependent upon the US economy. WiPro, TCS, Zensar, Infosys, etc. are all oriented towards the export market. The managers over there pay way more attention to the health of the US economy than to the economy there in India.

    India has an amazing infrastructure for developing engineers. The IIT system, for example, is easily comparable to the best universities in the United States or elsewhere in the west.

    My colleagues in India make significantly less than I do, yet they do live in quite comfortable middle-class-land. Yes, they do have servants, but in India, this is pretty common and not limited to techies.

    The eagerness, drive and overall "geekness" of the technical people I worked with would be instantly recognized on /. - the geek drive seems to know no language or culture boundary.

    Currently, the average work experience of the Indian engineers I'd been working with was pretty low - they were all in their early-to-mid twenties. What this meant was that most of the architecture and design work (and hence the "innovation") was created in the States, and then shipped overseas for the implementation. But they're very hungry, and very driven (as I said earlier) - I suspect that we'll start to see a lot more original development and design in the next 5-10 years as the tech base matures and gets some experience under its belt.

    This is why those export companies (like Infosys) are now eager to not just position themselves as implementors but designers and innovators as well - they want to move up the tech "food chain" because there are about a dozen countries (in Eastern Europe, China, etc) that want to occupy that place in the Food Chain where India now sits.

    The thing is that this offshoring business is actually possible because of the success of the Internet. I often work from my local coffeehouse when I'm not in the office, or telecommuting from home. If all I'm doing is slinging bits, does it really matter where I am? Often the answer is no...my saving grace (thus far) is that I don't work in an easily commoditized discipline.
    • Here here!
      An excellent post in a sea of xenophobia. I for one would like to congratulate Bangalore on this triumph. I think this kind of thing should be spread to other places around the world, to raise the standard of living and make the more empoverished peoples of the world self-sufficient. It doesn't matter where you are from as long as you do good work. We are all humans, perhaps we should be happy that our brothers and sisters in India (and China and Russia) have been able to find this kind of econom
  • by leoaugust ( 665240 ) <leoaugust@[ ]il.com ['gma' in gap]> on Tuesday January 06, 2004 @12:29PM (#7892065) Journal

    The number of engineering colleges is slated to grow 50 per cent, to nearly 1,600, over the next four years.

    I am not sure if this is a wonderful thing. As it is there are too many sub-standard colleges, and basic equipment and teaching staff is lacking in many. Such hypergrowth, in my opinion can cause nothing but trouble. I don't think the basic systems and infrastructure are there to support such an endeavor. Yes there are currently very good institutions but they are very few in the top tier. Most just dispatch their students with a "token" degree.

    Frankly, I think this insane growth in the engineering colleges, is just too much of herd mentality. - not unlike the dot com mania. And instead of treating a college as a social cause or obligation, most of the "engineering" and "medical" colleges are nothing but commercial enterprises. They are run purely as businesses, even to the extent, that many are called "donation colleges." You pay a huge huge amount of money and you get in - even in medical colleges !! Just imagine one of those doctors operating on you. It happens in India all the time !

  • Election issue (Score:4, Insightful)

    by ToasterTester ( 95180 ) on Tuesday January 06, 2004 @12:31PM (#7892090)
    This hemoraging of jobs overseas has to become a prime election issue.

    There was a good article on this topic in the Sunday L.A. Times pointing out it isn't only the Tech industry losing jobs overseas. All job levels and industries are sending services jobs overseas.

    The Corporate CEO's and politicians they have in their back pockets only see improved operating costs, what they aren't seeing is they U.S. customers losing their jobs and won't be able to afford their products as time goes on.

    Back when Alvin Tofler wrote _The Third Wave_ and said losing our manufactuing industry overseas isn't a problem, because America will become a Services based economy. Now we are losing our Services economy, but their isn't anything to replace it. The CEOs and politicians that cater to them need to open there eyes.

    Outsourcing jobs overseas NEEDS to become a major issue in the upcoming elections. Every canidate needs to be informed of the issues and asked how they stand on it.
  • by Unknown Kadath ( 685094 ) on Tuesday January 06, 2004 @12:33PM (#7892119)
    The company I work for, while incorporated in the US (for tax benefits and defense contracts, y'know), has the bulk of its employees in Bangalore. I, fortunately, have not had to work with the Bangalore office, since my work export control, meaning that foreign nationals can't work on it without special permission from the State Department. My coworkers on civilian projects, however, dread having to work with India. I'm not certain how much of it can be blamed on the Indian engineers themselves, and how much is the fault of poor communication, but all I ever hear about Bangalore is how often work needs to be sent back to be redone, and how inconvenient the time difference is.

    Do the company savings on salary and benefits make up for having to redraw a set of design prints five or six times? I don't know. I do know it runs the American engineers ragged and frustrates our customers when there's a schedule delay. The interface between the US and India is the real rough spot, I think. I know that purely internal work in both countries goes smoothly, but not being able to use our huge labor pool in India is hurting the American side of the business. Maybe I'm able to look at things dispassionately because my job isn't going overseas, but I *want* international outsourcing to work...and it's a rough start for my company. We need to overcome language and cultural barriers (any American who thinks Indian English and American English are the same dialect has never spoken to an Indian) and establish some actual communication between the continents, instead of throwing a set of design requirements into the ether and expecting the Magic Overseas Engineers to sprinkle some pixie dust and suddenly have a working set of engineering drawings.

    Is it different for IT work? I don't think coming up with design requirements for a program and then implementing them is a fundamentally different process than for a jet engine. ...I had a point when I started writing this.

    On the other hand, the broken English of the company newsletter is occasionally hilarious.

    -Carolyn
  • by barfomar ( 557172 ) on Tuesday January 06, 2004 @12:38PM (#7892170)
    The Big Three didn't worry about Toyota and Honda until the 1980's because of the low priced foreign competition. They rested on their laurels turning out mediocre cars at best.

    They almost didn't survive. The result was A Good Thing for the consumer.

    Now Japan has to worry about China, Korea and Taiwan doing the same thing to them.

    It pays to go to work every day thinking it may be your last day there.

  • by MaximusTheGreat ( 248770 ) on Tuesday January 06, 2004 @12:47PM (#7892261) Homepage
    Whenever this issue comes up I always see somebody or the other clamoring for legislation or other forms of protectionism. But in doing this they make some serious assumptions, that are wrong --
    a)American companies can be better off without any offshore development... No.
    Reason 1... Not enough americans are getting into the engineering disciplines, and those that are do not get the grad degrees etc. Have you seen the university graduate school departments for Masters/Phd. lately? How many americans do you see? India already produces vastly larger number of Engineers/computer science degrees then USA. It had at the last count about 1200-1500 engineering schools.
    Reason 2: Offshore/onshore combination development is a model that Indian companies have perfected as an art form, with the result that companies like Wipro, Infosys etc. are directly bidding for the contracts that US companies were outsourcing to them, because of lower costs. In fact IBM lists the Indian company Wipro as one of its most formidable competiters in future for its core services business. So, either US companies need to perfect the model, or start loosing contracts especially internationally
    b) Stoping outsourcing for govt. contracts using legislation will help. False It would probably slow things down, but it would only mean taxing the common citizen more to pay another US citizen, i.e. redistribution of wealth, and not any creation of wealth. On the other hand outsourcing means more dollars in the hands of Indians, and what do they do with those dollars? they can do only one of the 2 things, i.e. either buy US products or invest back in US, and they do both. At the same time more wealth is created in US, because some customers save money,and the money that went out, came back again and bought more products creating even more jobs.
    c) Indian companies are not creating any products.
    False. Subsidiaries of US companies in India are creating complete products. See previous stories in slashdot. But even besides that India has been getting the largest amount of VC capital in Asia for last couple of years, and you will se products out soon. Some products are already there. For e.g. iflex [equitymaster.com] In FY03, International Banking Systems (IBS) has ranked Flexcube as the number one selling universal banking solution in the world. Represented in over 50 countries through more than 30 corporate business partners, i-flex has gained the recognition of the first company in the world to cross the 100-installations mark for its product in less than 5 years. And there are other success stories.
  • by number6.3 ( 512525 ) on Tuesday January 06, 2004 @12:55PM (#7892345) Journal
    Think about it. An Indian or a Pak executive will work for a lot less...and they certainly won't screw up^h^h^h^h^h^h^hmanage the company any better or worse than their overpaid American counterparts. Anyone interested in starting an executive outsourcing company with me? :)
  • by swordgeek ( 112599 ) on Tuesday January 06, 2004 @01:25PM (#7892646) Journal
    OK this might upset some people, but that's too bad.

    As a Very Large Company(tm), we outsourced our help desk a few years back. It was a painful running joke in the office that if you wanted to do no work done, you'd "phone India" with a problem.

    The joke stopped justover half a year ago. Our India helpdesk is incredibly efficient at fixing problems, the staff are polite, and there's no bad attitude. I don't care how much money the company has saved--they have improved the quality of their internal support, and that's something pretty damned valuable.

    So before everyone whines about 'cheap but crappy outsourcing,' make sure that it really is crappy. I'd wager that for all but the most highly skilled jobs, the overseas work is as good as anything locally.
  • Let's get real (Score:3, Insightful)

    by JustAnotherReader ( 470464 ) on Tuesday January 06, 2004 @02:12PM (#7893087)
    I'd like to see some management jobs outsourced

    The answer to that statement is "That's just silly. To a manager cost cutting means cutting YOUR job, not his. Havn't you been paying attention?"

    It's amazing that during an election year that I've yet to hear one thing from Dean or Bush about this. Is everyone bought and paid for?

    The answer to that question is "Of course they are, havn't you been paying attention?"

    Sadly, this appears to fall into the "globalization" groupthink. It's a "free market economy" therefore it must be good...right?

    The answer to the last statement is more complex. The plain truth is that our government has done this to us on purpose. Rather than cutting back on spending they simply spend more and more and more. How do we pay for that? Well, last week Greenspan printed another $5 Billion in fiat money that has no gold or assets to back it up. In the same week the Fed issued an addition $17 Billion in debt. And that's just one week! How about a month of $17 billion weeks? Think about a year of $17 billion weeks. How about a decade of $17 billion weeks. What will that do to our economy? Throw in ridiculusly low interest rates and it's a recipie for disaster. Allow me to elaborate:

    Here in Southern California we have 15% of the jobs and 10% of the nation's population. If you count Southern California and the San Fransisco/San Jose are we have nearly 15% of the population of the entire country AND a bit more than 20% of the jobs. (This data comes from Claritas, a demographics company that I use to work for)

    People need to live where the jobs are. Yes, you can say "Go live in Indiana where you can buy a house on 2 acres of land for $200k" but then reality sets in and you realize that in general, you must live where the jobs are. People need to buy houses where they live. The artificially low interest rates have made it far too easy to get cheap money in the form of home loans. This access to easy money has artificially increased the price (not the value, but the price) of homes. In Mission Viejo in Orange County a house next door to my niece sold for $440k 4 years ago. It sold last month for $1.2 million. In my area of San Diego our home prices have doubled in 5 years.

    So how do people pay for that house? They need higher wages. Now follow along because this is an important concept: To purchase the same house they could have had 4 years ago they need almost twice as much money. In other words It takes more money to purchase the same amount of stuff That ladies and gentlemen is the very definition of inflation. That is the inflation that Allan Greenspan says does not exist

    So our government has made it far too easy to get money which has caused housing prices in the areas where the jobs exist to skyrocket. In the mean time they are printing money like maniacs which also deflats the value of all the existing dollars AND they're going deeper and deeper into debt at a such a rate that they seem determined to utterly destroy the country and it's entire economy at the fastest rate possible.

    Our government does not represent us, the middle class. Republicans, Democrats, it doesn't matter. We don't need an election, we need a revolution.

    Now are you paying attention?

  • by Colonel Panic ( 15235 ) on Tuesday January 06, 2004 @02:22PM (#7893206)
    Moreover, it is found out that the Americans are shying away from the challenges of math and science. A recent National Science Foundation Study reveals a 5 per cent decline in the overall doctoral candidates in the US over the last five years.

    One way to look at this is that we Americans are just lazy compared to Indians, Chinese, etc (and there is probably some truth to that). But from another perspective, why should we Americans bother to get advanced degrees in Math and Sciences when we're constantly bombarded with the message that we won't be doing the sorts of jobs here which require those degrees?

    This gets me to my main point: we're not only witnessing the export of good paying jobs from the US to various 3rd world countries (and the associated economic effects), we're also witnessing a huge transfer of skills and knowlege out of the US.

    As there are fewer tech jobs in the US it means that fewer engineers will be employed. When an engineer has no work for a year or two their skills will stagnate. Most engineers pick up new skills 'on the job' and without a job, they won't be picking up newer, in-demand skills.

    Of course this has a ripple effect: your nephew Johnny who is in highschool wanted to follow in your footsteps and get into engineering, but now he sees that you've been out of work for a couple of years and you're considering a different field altogether. You sit down with him at Thanksgiving and tell him to go into dentistry or auto repair so that he can have a steady, decent-paying profession... Well, you get the picture. Whereas math and science education is already pretty poor in many parts of the US, this trend will not encourage it to get any better. No, we'll be offering pre-law classes in highschool instead of calculus soon.
  • The answer to why? (Score:3, Insightful)

    by sameerdesai ( 654894 ) on Tuesday January 06, 2004 @05:00PM (#7895485)
    India is a cheap country to live in and I know it because I lived there. Yes you can say that you get very less pay than what you get in US but then you should also look at expenses. You spend more than half of your salary into taxes, rents, and payments of other kinds which is not the case in India. The saving there are tremendous. And you can end up saving more than here. The reason jobs keep on moving to India are significantly many some of which are: 1) 1 US Dollar = 50 Indian Rupees (approx) 2) You have to pay there much less than here in US. As for e.g. If I get paid here in US 5000 bucks a month, this translates to nearly 250,000 Indian Rupees. A salary of more than 25,000 Indian Rupees a month is considered more than excellent. 3) Excellent cheap labor. There are many educated people there whose primary language is English and can effectively deliver the goods. The economic condition is improving drastically and it does not surprise me why companies want to move jobs to countries like India and China with the very reason why we are seeing such a jump into Jobs @ Bangalore.

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