Tuesday, December 21, 2004

Indian outsourcing: an alternate view

Excerpts from an article titled Indian outsourcing: an alternate view. Obviously not an unbiased view.
There is little innovation among the software crowd, just mindless drudge work. But while the Indian rupee is 43 to the US dollar, 57 to the euro, 85 to the British pound and 33 to the Australian dollar, foreigners will continue to send work to this impoverished nation.

Though nobody says it openly the fact that one US dollar is equivalent to around 45 Indian rupees drives this migration. The excuse of plenty of educated staff being available is just incidental.

But given that the governments of both Karnataka (of which Bangalore is capital) and Andhra Pradesh (capital, the twin cities of Hyderabad and Secunderabad) were both voted out in elections earlier this year, by rural poor who cared little for the techno-focus of these administrations, it is unlikely that the politicians will be over-eager to indulge people like Azim Premji of Wipro, now the richest man in India.

About Bangalore

Earlier, people would travel from the periphery to the centre to work; now the rush is both ways. The evening traffic jam in the city takes the better part of five hours to dissipate. And it is nothing short of chaotic.
Now land values are so high that villagers are increasingly tempted to sell out to developers and migrate to the nearest slum close to the city. In a typical scenario, the farmer loses his land, gains a lump sum of cash which he uses to marry off some of his daughters. He then migrates to the nearest slum, becomes a drunkard and finally a beggar.

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