from: The Wall Street Journal, Tuesday, July 3, 2007, front page
title: "Some in Silicon Valley Begin to Sour on India"
subtitle: "A Few Bring Jobs Back As Pay of Top Engineers In Bangalore Skyrockets"
by Pui-Wing Tam and Jackie Range
Interviews and research with quotes as follows:
Munjal Shah [with image of him, and born in India] led a California start-up
[Riya] opened an office in Bangalore in 2005, hired about 20
skilled software developers at 1/4 what they cost in Silcon Valley. Then
salaries soared. He said this year it cost 75% of SV salaries, plus extra
expenses of running an office in India, and in April this year he closed
the Bangalore office.
"Across SV, some technology companies, particularly start up and midsize
ones, are beginning to turn away from India for low-cost labor to do
sophisitcated tech work. Kana ... eliminated 100 software-developemnt jobs
in India in late 2005 and expanded its U.S. hiring instead. Teneros, Inc.,
shut down a 30 member India office and brought 12 of the people to its
headquarters in ...California."
The article mentioned that Apple cancelled plans to open a facility in
India.
"'The wage inflation rate for engineers in India is four times what it is
here' in America, says Intel's chief executive, Paul Otellini."
Article says Indian wage inflation is 10-15% per year, other sources say it
is closer to 50%.
"India is no longer the premier outsourcing destination."
Article says even the simple call-center work may be done more cheaply in
the Philippines and Vietnam, and mentions that Indian companies are even
looking outside India to create jobs. TCS recently opened a center in Mexico
and is considering a move to Morocco. Wipro has two centers in China and
planning one for the Philippines.
Pervasive Software (from Texas) opened a Bangalore unit in 2004 with 45
people, but turnover reached more than 25% per year. Last year it closed the
Bangalore office.
The article mentioned that it takes more supervisors to manage Indians.
So, they are asking why pay a junior guy in India just a little less when
they can get a senior guy right in California.
title: "Some in Silicon Valley Begin to Sour on India"
subtitle: "A Few Bring Jobs Back As Pay of Top Engineers In Bangalore Skyrockets"
by Pui-Wing Tam and Jackie Range
Interviews and research with quotes as follows:
Munjal Shah [with image of him, and born in India] led a California start-up
[Riya] opened an office in Bangalore in 2005, hired about 20
skilled software developers at 1/4 what they cost in Silcon Valley. Then
salaries soared. He said this year it cost 75% of SV salaries, plus extra
expenses of running an office in India, and in April this year he closed
the Bangalore office.
"Across SV, some technology companies, particularly start up and midsize
ones, are beginning to turn away from India for low-cost labor to do
sophisitcated tech work. Kana ... eliminated 100 software-developemnt jobs
in India in late 2005 and expanded its U.S. hiring instead. Teneros, Inc.,
shut down a 30 member India office and brought 12 of the people to its
headquarters in ...California."
The article mentioned that Apple cancelled plans to open a facility in
India.
"'The wage inflation rate for engineers in India is four times what it is
here' in America, says Intel's chief executive, Paul Otellini."
Article says Indian wage inflation is 10-15% per year, other sources say it
is closer to 50%.
"India is no longer the premier outsourcing destination."
Article says even the simple call-center work may be done more cheaply in
the Philippines and Vietnam, and mentions that Indian companies are even
looking outside India to create jobs. TCS recently opened a center in Mexico
and is considering a move to Morocco. Wipro has two centers in China and
planning one for the Philippines.
Pervasive Software (from Texas) opened a Bangalore unit in 2004 with 45
people, but turnover reached more than 25% per year. Last year it closed the
Bangalore office.
The article mentioned that it takes more supervisors to manage Indians.
So, they are asking why pay a junior guy in India just a little less when
they can get a senior guy right in California.
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