Thursday, October 12, 2006

Outsourcing

Greg Mankiw notes that the popularity of outsourcing seems to be on the wane.

Earlier this week I was talking with a coworker about our own jobs being outsourced to India given that more work is being given to our office there. We agreed that this was pretty unlikely as a lot of the work that our India office has performed is basically crap. My coworker, whose parents are from India, said that the talent pool in India is not nearly as deep as people think it is. Rather, because of the success of Indians here in the US and the early success in hiring talented people in India for cheap wages there was a sense that India was full of genuises willing to work hard and for far cheaper than their US counterparts. The problem, my coworker said, is that the talented ones -- often graduates of the Indian Institute of Technology -- have been largely taken and their wages are rapidly increasing.

Having visited India numerous times he said, "Trust me, there are plenty of Indians that are complete idiots."

No comments: