LeGenD
MODERATOR
- Joined
- Aug 28, 2006
- Messages
- 15,813
- Reaction score
- 162
- Country
- Location
So you have figured it all out? I suppose that you have statistical figures to support your claims?such as?
software depth is not something you develop in one year or two years. Insiders know how deep this dependency is. The issue is not pure software technology. The real dependency is the extent of specific application and business process knowledge that has been outsourced in such massive numbers to the Indian 'majors' as they are called, that locals in the US simply do not hope to ever bring back.
Secondly to 'bring' that knowledge back there are only two strategies: 1) hire a lot of locals and have them trained over time. You can imaging what this would cost if a company is to replace software talent from India even at a 3:1 ratio. 2) Complete create new software systems using local talent - this actually may be the better long term option BUT it is a non-starter for one reason: good software engineers want to work in Silicon Valley for innovative product startups, NOT developing banking systems!
The only concern Indian IT business had was if China would somehow manage to teach English to its software millions. Over the past 15 years, China has tried real hard and failed. Meanwhile Indian companies have diversified into Europe where I understand now 30 to 40% revenues come from; plus some of these companies are buying up American companies with their cash.
Finally the concept of 'Indian IT' has changed. Would you consider IBM, Accenture, CSC et al to be part of American or Indian IT sector? Yet these companies all have more than half their staff in India. I mean in tens of thousands.
All these countries put together cannot come up with the scale of one Indian major in software. Secondly, Pakistan is not trusted; BD & Nepal do not have IBM AT'16s yet; Srilanka sends its best and brightest to South India colleges; Philippines has been and tried and failed in software, but have indeed developed excellent call centers (which India is happy to give up due to low value). That leaves Vietnam - completely unknown as yet (at least to me...and I happen to be aware of almost ALL major IT deals made in the US).
If India gets its act straight, they have a very real chance of true partnership with the US. The Americans, the Indians and the world deserve that. But it requires India to clean up its act and growing up fast.
It is very difficult to find anyone that will say otherwise. Workers are workers and we all have to slog to make a living. So anytime anyone loses their job, it is impossible to justify that for any reason.
That said it always surprises me to see how many otherwise reasonable and truth-seeking (fellow) Americans fail to look at data before making such statements. If you have a cut in you toe will you put a bandaid there or treat your hair follicle?
America lost its manufacturing base - jobs, capital and intellectual property in massive numbers to China. That is where the malaise is. A good software engineer (not documentation specialiast, not QA tester, not requirements associate...) is HARD to find in the USA. They are all either working for startups for options or located in Israel, India and Russia. There are many many in China too but they have been corralled for cyber warfare by that country.
The place to start is to bring back manufacturing into the USA. Or atleast start diversifying out of China.
If you don't believe that just look at the state of demand and supply for goods from automobile, steel, paper goods, rubber industries in the US. If you see the ratio of demand vs source of supply for these goods (I am talking goods, not raw material) you will realize how many tens of millions of jobs have been lost. And you are worried about 65000 H1b visas! Do you realize H1B visa holders work IN The US and the government at least get taxes from them besides fees. Whereas in the industries I mentioned, the job loss is 100+ times that plus complete loss tax revenue PLUS flight of capital! Come on!
US is a talent magnet and it isn't difficult for the US to outsource some jobs to other nations and/or find a suitable replacement if a country goes rogue.
Top software developing countries in the world in 2014:-
US = 19.2%
China = 10.1%
India = 9.8%
The aforementioned statistics haven't changed much since 2013.
Moreover, number of software developers are evenly distributed worldwide:
Source: IDC Study: How Many Software Developers Are Out There?
You think that only India produces capable programmers? You are deluding yourself.
India is one of the major software exporting markets because of cheap labor! Full Stop. American software programmer demands much higher salary then an Indian software developer on average.
Also, check the world innovation index: These Are the World's Most Innovative Economies - Bloomberg Business
---
As far as manufacturing industry is concerned, it represents only 12% of the total US economy at present. Yes, American economy is so massive and diverse.
However, US is looking forward to expand its domestic manufacturing base in the near future. US is learning a lesson from China in this area.
Last edited: