Tuesday, July 3, 2007

Now, India Outsources....to America

In a case of, reverse offshoring Indian tech companies are hiring Americans and other foreigners to work in India. Currently, more than 10,000 Americans work in India for Indian information technology consulting firms, a number that is expected to grow.

Over the next year, leading Indian software provider Infosys Technologies Ltd. will spend $100 million to hire and train 25,000 workers culled from around the world, including from MIT and Harvard. This summer they will train 300 American college graduates to work at full-time jobs for them -- here in the US. These new employees will receive starting salaries of $55,000 after completing a six-month course at the firm's training facility in Mysore, India.

Conversely, factors that used to tilt jobs toward India and other low-cost countries are now shifting. Nobody expects a major reversal of the offshoring trend, but political pressure in the United States has forced many companies that do government contracting, for instance, to keep jobs here. Defense giant Northrop Grumman plans to set up a homeshore, hiring hundreds of software engineers, in rural Virginia--where costs are higher than in India but lower than in prime U.S. cities. Science Applications International Corp., another defense contractor, recently opened a tech center in Kentucky. Other states, like Nebraska and Indiana, are offering tax and other incentives that make them look like an affordable alternative to Bangalore.

For the full story, please visit The Boston Globe.

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