Many of you in the US may be aware of the uptick in conversation regarding the (to borrow from that quintessential maverick, Ross Perot) "giant sucking sound" associated with the outsourcing of IT jobs overseas (read India, China, Russia). Click for instance on the following link for a summary coverage:
http://money.cnn.com/2003/07/22/news/economy/jobless_offshore/index.htm
As one can imagine, this raises the heckles of various groups in the US, more so understandably the labor unions. Now, such transitions are inevitable in the evolution of a nation's economy, as was seen in the case of the manufacturing sector (which today comprises less than 15% of the US economy). Similar arguments were made when the migration of manufacturing jobs commenced in the 70s. Attempting to prevent this process is a futile attempt, but then politicians are rarely known to think with their brains in matters pertaining to the economy.
Thus, attempts will be made to delay the inevitable, at a tremendous cost to the national economy (after all, being myopic is one of the hallmarks of most politicians). For instance, under this broad rubric of Business Process Outsourcing (BPO) that has assumed centerstage in the political-economic discourse in the country is the case of the call-centers. For those of you who have visited India recently, you may have noticed that this has become big business over the past couple of years with many college students taking advantage of these opportunities (as you know, many of your direct marketing and service calls are made from such off-shore locations). Such opportunities present an effective way for some students (okay, those in the metros) to defray the increasing costs of their education in India. Nevertheless, states like New Jersey have sought to enact legislations to make it difficult for companies to engage in such outsourcing, never mind that tax payers in the state will have to bear the price of such foolish moves.
Vajpayee had it right when he modified the national slogan in India to Jai Jawan, Jai Kisan, and Jai Vigyan to reflect the increasingly knowledge-based global economy of the future. States such a Goa can capitalize on such trends and concentrate on shaping a strong education system for the future. Catering to parochial interests such as making Konkani a mandatory language of instruction in schools would derail its attempts to close the distance from the more economically advanced neighbors. After all, some of the characteristics that make Indian an attractive place today include the prevalence of English as a medium of communication, the existence of a variety of institutions (e.g. courts), and the emphasis on science in the curriculum. Offering tax incentives to attract outside companies to relocate in the state is akin to a company engaging in a price war. Such a strategy is effective only until the next player comes around and offers an even lower price!
Meanwhile, folks in the US should adopt a more proactive role in how the landscape out here unfolds. At the minimum, corresponding with your elected representatives and voicing your views on these legislative matters is something that almost any one can do. US politicians, for sure, are very sensitive and receptive to the needs/views of their constituents. As a person once remarked to me recently: Indians are notorious for giving (donating money to campaigns), but not asking anything in return!
Best, James
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