Why The West Needs Indian Outsourcing

Distressing comment in Saturday’s New York Times, in a Q&A with Azim Premji, the chairman of Wipro (WIT), the big Indian outsourcing company, about why the West needs Indian technical talent:

The West is not producing enough engineers. The United States will produce 75,000 engineers this year; they will produce more sports therapists than engineers. Germany, the great engineering power of Europe, will produce 35,000 engineers this year; they will produce more architects than engineers. Western companies want access to Indian talent, that is why they outsource, that is why they come to India to set up base.

More sports therapists than engineers? That’s depressing.

Comments

[Eric Balkan:]

Depressing but not surprising. Sports therapists can't be outsourced. There's little incentive to become an engineer if you know that, upon graduation, you'll be competing with Indian engineers willing to work for $10K/yr.

- Eric Balkan

2006 Sep 19 02:35 AM

[Janisree:]

Indian engineers need to spend way less than 10 k per year to lead an upper middle class life too.

2006 Oct 01 08:47 PM

[Seeking Alpha:]

Thats hogwash ! The numbers are significantly higher.

Here are the statistics ...
www.nsf.gov/statistics...

While its not the most current statistics ... it gives you a general idea of what the number would be for 2006.

M. Menon

2006 Sep 21 12:30 AM

[Ray Lopez:]

True, true. Indeed the 75k engr. graduates figure is too low: "www.nsf.gov/statistics...
# The numbers of [USA] S&E bachelor's and master's degrees reached new peaks of 415,600 and 99,200, respectively, in 2002."

Another fact of interest: in this week's news a survey done by a private outfit (which of course is subject to debate) found that only one-fourth of India's 400k a year science and engr graduates are adequate by US standards; the rest are mere technicians and need extensive training.

So roughly speaking it can be said that India's best is only one-fourth of the USA's, vis-a-vis engineering and science.

The only reason to outsource to India is to save money, not for quality.

RL

2006 Oct 18 08:13 AM