[Futurework] FW: Jobs Squeeze for Indian Workers

[Cordell . Arthur]

 

Subject: Jobs Squeeze for Indian Workers

Globalization continues.

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Subject: Wired: Jobs Squeeze for Indian Workers




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Jobs Squeeze for Indian Workers

http://www.wired.com/news/business/0,1367,59126,00.html

By Michelle Delio

India, the primary destination for American companies outsourcing technical

India, the primary destination for American companies outsourcing technical support jobs in recent years, may soon find itself being outsourced.

U.S. companies such as IBM, Intel, Hewlett-Packard, Oracle and PeopleSoft are already exploring countries with even cheaper sources of technical labor, says a report from research firm IDC. The new destinations include Romania, Russia, Hungary, the Czech Republic, the Philippines, Singapore, Thailand and Vietnam.

As a result, India, which some have blamed for the loss of American jobs, may soon lose jobs itself.

In recent years, "offshore" tech support has become a booming business in India. India's 50 or so call centers, operated primarily for American companies, pulled in about $183.9 million last year, according to the National Association of Software and Service Companies in New Delhi.

That sum was predicted to more than double within the next four years. But American tech firms are now eagerly seeking outsourcing options in other countries.

Research firm Forrester estimates that over 3 million jobs, many from tech industries, will leave the United States by 2015.

Forrester's research indicates that India will still be a major outsourcing contender, but will not be the only or perhaps even the primary option for outsourcing tech work in the next decade.

Tech workers in the United States have already formed organizations to try to stop the flow of jobs to India, saying they can't compete with low salaries paid to Indian workers.

Now they will be competing with workers from many other countries.

Hungary, Russia, Romania, and the Czech Republic have begun to obtain more outsourcing contacts from U.S. firms like IBM, Boeing and Intel. But most of the workers in these countries are more apt to be doing software testing and development than technical support, said Traci Gere, Group Vice President at IDC.

According to Gere's research, the Philippines is strong in "call centers and sweatshops" but is a challenge due to the country's political instability.

Singapore workers want close to western level salaries. And Thailand has "limited labor quality" and a "challenging business environment."

Vietnam may be the most likely Asian contender for India's tech support crown, as the government is "keen" to develop a reputation as a technology center, Gere reported.

That keenness is a concern to Padmajai Goenka, a 23-year-old technical support worker in Mumbai, India, who goes by the name of Pam when she's on duty troubleshooting problems for puzzled PC users in the United States who very rarely know they are speaking to someone who lives thousands of miles away.

Goenka, who requested her company name be withheld, said that she was trained to "act American."

"Even though there is a lot of yelling from the clients, I love this job." Goenka said. "I have been fascinated with America since I was a little girl. Now I get paid to pretend I am American -- it's wonderful."

Indian call center workers receive meticulous training before they are allowed to field tech support calls. Farhat Gupta, owner of several Bangalore call centers, said that little attention is paid to technical training, as "all the answers are always on the computer screen in front of the workers. We exist for people who do not want to use the Internet themselves to find their own answers."

Instead, instruction is centered on learning American culture, and "losing the British accents they all pick up in school," Gupta, who has an office in Jackson Heights, Queens, said.

Trainees typically watch dozens of American movies and TV shows for the first week to acclimatize themselves to U.S. slang and accents.

Gupta said he too was concerned that outsourcing might be outsourced from India in the near future.

"It's hard to know where it will all end. Is there a country were people will work for free?"