Indian outsourcers set up shop… in America.

It was only a matter of time I suppose:

Indian Outsourcer Plans Delivery Center in Ohio – Yahoo! News

As Indian service providers get closer to their U.S. and European customers, India’s largest outsourcer, Tata Consultancy Services (TCS), has set up shop in a suburb of Cincinnati.

The company’s new services delivery center will be its primary software development center for North American customers. Located in Milford, Ohio, the North America Delivery Center can accommodate up to 1,000 staff, most of whom will be hired locally, the company said on Tuesday.

A number of Indian outsourcers are setting up facilities to be in the same time zone and be physically closer to North American and European customers. Infosys, India’s second largest outsourcer, and Wipro, the country’s third largest outsourcer, have, for example, set up IT services and business process outsourcing operations in Monterrey, Mexico. Wipro, which last year acquired Infocrossing, an IT services provider in the U.S., is also planning a facility in Atlanta.

It makes sense on a couple of levels—closer to the people you’re supporting and no complaints by clients that they can’t understand the person on the phone—but it means that techs that work there can expect to make diddly squat in terms of wages. There’s be no point in outsourcing if there isn’t a cost savings.

Link sent in by SEB reader Rich.

3 thoughts on “Indian outsourcers set up shop… in America.

  1. Well, I suppose it’s kudos to the Indian companies for finally getting around to providing the customer service we’ve been paying for all this time, but it still burns me up a bit. 
    We let American companies send many of our decent jobs to other countries, because the owners can’t get rich quickly enough paying above-starvation wages.  The Indian economy gets a nice boost at the average American’s expense, and the most we get in return is ever-so-slightly cheaper cell phone or cable or internet service, if even that.
    Now the Indian companies are giving some of the jobs back (at a substantially lower wage than before, I’ll wager)and the ONLY people benefiting are at the ownership level.  The working classes of two huge countries proving what they are worth to capitalists-nothing more than a piggy bank to be shaken until every last cent is gone. 
    It’s like a Jacob’s Ladder of brutal economic ass-rapings for middle-class Americans.  I’ve said it before, but no one seems to remember or believe: My grandparents were far from rich, but they were able to buy a house, two cars, and raise seven children on minimum wage jobs.  The highest paying job my grandpa ever had was driving an ice truck.  My own parents were able to squeak by and buy a house in California, two cars, and raise two kids on “skilled laborer” jobs.  I work for a little over minimum, can barely pay the rent and keep a single puppy fed.

    It’s too bad that there are no more actual Liberals left in our government.  You know, people who might stand up and demand that American companies should not be actively working to destroy the nation that allows them to thrive.

  2. Has anyone read “Peoples’ History of the United States from 1492 to Present,” by Howard Zinn? If we refuse to learn from history, we are doomed to repeat it.

  3. It depends on if where they set up shop, at least in the USA, is a prevailing wage market or not. I know some states and municipalities have laws that you have to pay at least the going median wage paid for that same job classification at other businesses in the area.

    There are ways to weasel around it until their employees notice and complain, however.

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