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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.