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Americans Need Jobs; Firms Look to India

The economy sucks. Americans need jobs. We hear these two facts on a daily basis, either through the local and network news, or by word of mouth.

We're constantly reminded of the economy in the local newspaper, in news posted online. While parents struggle to feed their children and look to the government to resuscitate the economy back from a near flat-line stasis, American companies are outsourcing jobs to cut costs.

Reuters recently focused on India in this article, naming many high-tech firms such as Microsoft, Texas Instruments and other companies that have set up research and development centers within the country. Reuters describes Microsoft's R&D facility, fully staffed with 60 full-time researchers, many of whom are Indians with PhDs from top universities located in the U.S.; the center covers seven areas of research that includes cryptography and mobility.

"From when a few companies offshored non-critical design work, we have seen India emerge as a preferred destination for design and development of chip, board and embedded software," said Jaswinder Ahuja, managing director of Cadence India.

Cadence Design, based in San Jose, was one of the first to set up shop in India back in the mid-80s. According to the Reuters, the company was "drawn by the legions of English-speaking software engineers who could be hired at about 20 percent of the cost of engineers in the United States."

Ouch. Still, saving money makes sense. Taking American jobs away from the American people makes no sense at all.

  • paranoidmage
    It isn't the company's job to save the job rates and economy. All the CEO's are supposed to do is keep their company strong and keep the stock price up for investors and share owners.
    Reply
  • kelfen
    OBAMA made americans x3 poorer with that stimulus bill full of pork such as 1 million going to washington zoo ect.
    Reply
  • That's what happens when you put money into banks, buy shares, savings etc. Just a consequences of the free market.
    Reply
  • chripuck
    Too bad the Indian's are moron's. I say that from intimate experience. If you give them an exact guide on how to proceed they do a good job for a fraction of the price of an American worker, but ask them to think outside of the box and they just can't cut it.

    The poor creativity of the average Indian is part of a reason my IT firm get's business. We always get called in to clean up their messes. Of course most of our business comes from Europe and we have yet to tap into our main client's US business because they haven't figured out yet how crappy their Indian outsourcing is.
    Reply
  • njalterio
    I agree with paranoidmage. American workers have just gotten lazy and overpaid compared to what they used to be back in the 30s and 40s. If the show "The Office" is any indication of what the American workplace is....I can't say I blame companies! All those damn unions driving up costs....when will people realize we don't work in hazardous factories anymore and unions are BS?
    Reply
  • njalterio
    kelfenOBAMA made americans x3 poorer with that stimulus bill full of pork such as 1 million going to washington zoo ect.
    That stimulus bill did suck, but don't complain about the paltry million dollars that went to a zoo....the billions that went to unnecessary politicians is the real nonsense.
    Reply
  • htoonthura
    ^exactly. Stop whining and start working.
    Reply
  • flinxsl
    htoonthura^exactly. Stop whining and start working.millions on welfare depend on it!
    Reply
  • chripuck
    njalterioI agree with paranoidmage. American workers have just gotten lazy and overpaid compared to what they used to be back in the 30s and 40s. If the show "The Office" is any indication of what the American workplace is....I can't say I blame companies! All those damn unions driving up costs....when will people realize we don't work in hazardous factories anymore and unions are BS?

    last I checked IT workers weren't unionized.
    Reply
  • fulle
    I think its a problem when its less expensive to hire someone overseas BEFORE hourly wage is factored into the equation.

    I think its a problem when we let thousands of poorly accredited "Engineers" into the same lottery system as European doctors.

    I think its a problem that companies have employees working full time positions, but periodically will lay them off for 3 month periods of time to avoid the patheticly ineffective contract labor laws.

    I find it pathetic that GM was driven to bankruptcy by overpaid union workers, while more and more of us become contract employees, with minimal rights, competing with 3rd world labor.

    And it all just makes me pretty sad. And... nobody seems to care. Nobody is angry. They just watch TV, eat cheesburgers, spew blind patriotism. I almost wish I was a stupid sheep as well... nice soothing complacent ignorance... *sigh*
    Reply