WSJ: Upper-level tech jobs coming back from India
Another good article in today's Wall Street Journal.
The same Silicon Valley that outsourced thousands of IT jobs to India is bringing them back. Increasing salaries of skilled computer programmers are negating the value of keeping the jobs in India. An example from the article states salaries in India started at a mere quarter of what American programmers with similar experience would be paid, but the salaries demanded by skilled workers in India have now increased to 75% of a comparable American salary. This increase, combined with the time difference drawback, has caused companies to stop saving money by outsourcing high-level computer jobs.
The CEO of Intel was quoted as saying the wage inflation rate for engineers in India is four times that of America, and other estimates put it as much as 50%. America, by comparison, runs about a 3% wage inflation rate for the software industry.
This shift puts a new twist on the globalization debate. A 2005 study estimated that only 25% of India's computer engineers had the "language proficiency, cultural fit, and practical skills" to work for U.S. employers. Therefore, the highly skilled workers, supplemented by the half-million engineering graduates from India annually, have to keep up with the influx of U.S. software companies looking for their services. At the levels U.S. companies have been turning to outsourcing, answering this high level of demand was just improbable.
I'm a staunch libertarian at heart, but a (future) IT professional above all else, so I deviate slightly from the pro-outsourcing view of my political party. I'd like to think that a certain level of job security exists for those in my profession, so news like this gives me hope for the future (when I actually enter the job market).
Article: Tam, Pu-Wing, and Jackie Range. "Some in Silicon Valley Begin to Sour on India." Wall Street Journal 03 July 2007: A1, A15.


