The invisible hand of the market…
I found this article yesterday titled “Some in Silicon Valley begin to sour on India“. The theme of the article is that the pay of Indian engineers is getting closer to what engineers are paid in America. When you factor in the overhead associated with outsourcing, the costs savings have dramatically shrunk. Two years ago Robert X. Cringely wrote an article that said pretty much the same thing. The overhead of managing outsourcing is bound to make the cost savings a wash.
To me this illustrates how powerful and fast the market is. While our politicians are blathering on in Washington about the “evils” of outsourcing cheap labor, the market, at least in the high tech sectors, is already solving the problem. Silicon Valley has been creating wealth and jobs in this country with outsourced labor, and India, a poor country for the most part, has a new and growing 40 billion dollar industry. Everybody wins.
