Obama calls India a job-creating giant for USA

[Markus]

again let me repeat, you said india does not beg for jobs but you also concede that they ask for jobs....is the contradiction not glaring at you.

secondly there is nothing wrong with what india is doing from india's perspective, but from the us perspective its not exactly great when you have a whole generation of american graduates wasting their most productive years whilst indians have the opportunities to make hay - its a great deal indians have gotten, they get to get richer whilst americans get poorer

You dont want to accept the Indian viewpoint.

I said Indians are not begging for jobs, just as pointer to Asim's post, where he said that "Indians take away the jobs". So what I mean is that Indians dont beg them away, its the US corporates who are willing to give them away to India.

I would like you to go through two of my above posts were I mentioned that US also outsources many hardware manufacturing processes to Chinese companies in large numbers. Even i-phone is made in China.

When there are so many countries who are receiving US jobs than why single out India alone?

 

[Swift]

again let me repeat, you said india does not beg for jobs but you also concede that they ask for jobs....is the contradiction not glaring at you.

secondly there is nothing wrong with what india is doing from india's perspective, but from the us perspective its not exactly great when you have a whole generation of american graduates wasting their most productive years whilst indians have the opportunities to make hay - its a great deal indians have gotten, they get to get richer whilst americans get poorer

Its now about asking / snatching / begging , its about having good business environment and be able to do the job at correct price. (the way you are saying it seems like bidding for business contracts from another country is a wrong thing)

In the end business decisions of Microsoft / IBM and likes are just business decisions. and if you are so disturbed by grief of poor American can you also check how much manufacturing jobs have shifted from US to China / Korea / Taiwan etc

 

[sensenreason]

How can out-sourcing jobs to India create jobs For Americans?

That makes no sense whatsoever.

Good question. Outsourcing companies save money and therefore increase there profits that are reinvested in the economy or just redirects investment to core activities of the company rather than on running service centres or maintaining/building software.

Also, the companies that provide outsourced services and take away jobs.. now hire in large numbers in US itself.

To the point about QE2...India is fine for now allowing capital inflows as our stocks are already at a high and real estate purchase restrictions have been put in place...so hot money will be frozen on arrival as investment in infrastructure which we need badly...

 

[sensenreason]

again let me repeat, you said india does not beg for jobs but you also concede that they ask for jobs....is the contradiction not glaring at you.

secondly there is nothing wrong with what india is doing from india's perspective, but from the us perspective its not exactly great when you have a whole generation of american graduates wasting their most productive years whilst indians have the opportunities to make hay - its a great deal indians have gotten, they get to get richer whilst americans get poorer

China, Japan and Korea took away High end manufacturing jobs and lower end manufacturing jobs from the US and thats how these countries became developed. The effect of the Chinese has been most job losing one...for the US. India's exports to US are a fraction of that of China..so this arguement of jobs being taken away is more valid for China..in most cases to start with outsourcing to India was a last option and anyhow Philipines is now doing better at this than India...so lets focus on Manila and Shanghai rather than Bangalore and Hyderbad

 

[AZADPAKISTAN2009]

10 trillion deficit is hard to recover unless Obama dances the classical indian bollywood tunes , muni badnam hoi darling tere liye

I am suprised why he was not wearing a sary and bindya as well would have fit in well with ladies

 

[somebozo]

ok..so are americans willing to work for indian wage?

 

[shineonyoucrazydiamond]

ok..so are americans willing to work for indian wage?

No,

that's why jobs cannot be taken back to USA

 

[sensenreason]

10 trillion deficit is hard to recover unless Obama dances the classical indian bollywood tunes , muni badnam hoi darling tere liye

I am suprised why he was not wearing a sary and bindya as well would have fit in well with ladies

No one in the world can export their way out of 10 T USD deficit...so deals wwith India and other countries will help them get some jobs back in US and is not really a deficit-debt issue but an unemployement issue.

However, once Dollar gets devalued the debt burden reduces automatically...and hence the currency wars.

By the way, WOT is a major resource drain for the US that they are now going to be forced to balance by increasing exports, reduced spending and maybe higher taxes if Republicans allow for it..leave India out of this...Thank you..

 

[aristocrat]

Is it me or obama does look desperate.Here are some statistics pertaining to it, bpo


- * number of people employed in overall IT industry in India (end 2006):
1.3 million directly -- 3 million indirectly [BBC Jan 07]
- staff employed in ITES-BPO : 2002/03: 171,100 -- 2003/04: 245,100
(ITES-BPO: IT enabled Services - Business Process Outsourcing) [GTF; 2005]
- staff employed in outsourced customer service: 2002/03: 65,000 -- 2003/04: 95,000
[GTF; 2005]
- annual employee attrition (staff turnover) in voice based BPO (i.e. outsourced
call centres): up to 70-80% in some voice BPOs [GTF; Jan 2006
- * number of people applying at Infosys in Bangalore: 1.4 million in 2006 [BBC Jan 07]
- * number of workers hired by Infosys in Bangalore per year: 30,000 [BBC Jan 07]
- * people employed by three major Indian IT firms (Infosys, Wipro, TCS):
2006: between 52,000 and 83,000 each-- 2001: between 10,000 and 20,000 each --
1996: between 1,000 and 9,000 each [BBC Jan 07]
- * people employed abroad by major IT firms: Wipro: 11,000 -- TCS: 20,000
[BBC Jan 07]
- annual salary hike in IT services 2003: 14% [2004]
- * levels of pay for legal professionals in India as used in LPO
(Legal Process Outsourcing): 10% - 15% of that of US lawyers [DNA May 06]
- * standard salary for call centre worker in India: around 1.2 lakh Rs
(120,000Rs or 1,600 GBP) per year or 10,000 Rs per year [BBC Jan 07]
- call centre salary in Gurgaon (in the state of Haryana, but more considered a
suburb of Delhi): 8,000 to 14,000 Rupees per month [2004]
- * number of members of WBITSA (West Bengali organisation representing
IT worker's rights): 500 [BBC Jan 07]
- * number of IT workers in West Bengal: 2006: 40,000 (incl. call centre staff)
[BBC Jan 07] -- 2004: 20,000 [BBC Oct 04]
- * contribution to India's GDP by Business Process Outsourcing (BPO):
estimated for Financial Year 2007: 5.4% -- Financial Year 2006: 4.8% [FE Jan 07]
- * exports of BPO services: 2006: 13bn GBP -- expected 2010: 30bn GBP [BBC Jan 07]
- * export of software services and IT-BPO in financial year 2006-07 according
to Nasscom: approx 16.3bn GBP (31bn USD) [FE Jan 07]
- * increase of world wide share of the global outsourcing market by Indian
companies: within the last 4 years from 0.5% to 7% [BBC Jan 07]
- revenue from BPO & call centres in fiscal year 2004-05: 5.2bn USD [c/net; Jun 05]
- revenue from export of software and services industry in fiscal year 2004-05:
17.2bn USD [c/net; Jun 2005]
- total revenue in software industry in fiscal year 2003-04: 15.9bn USD [GTF; 2005]
- export of goods and services of India's IT and outsourcing industries in fiscal
year 2003-04: 7 billion GBP [BBC sep 04]
- revenue percentage of software industry exports 2003-04: 78% [GTF; 2005]
- contribution of outsourcing to India's total software exports: 29 % [BBC sep 04]
- Bangalore's (Karnataka's state capital) revenue from overseas outsourcing: 32 %
of India's total overseas outsourcing revenue of 10 bn Euro [BBC Sep 04]
- * value of shares sold in 1999 by Bangalore based company Infosys:
approx 37 million GBP [BBC Jan 07]
- * current market value of major IT firms: Infosys: 17 billion GBP --
Wipro: 13bn GBP -- TCS: 13bn GBP (all figures approximately, with exchange rate
1.9 USD = 1 GBP) [BBC Jan 07]
- * current annual revenue of major IT firms: Infosys: 1.1 billion GBP --
Wipro: 1.2bn GBP -- TCS: 1.6bn GBP (all figures approximately,
with exchange rate 1.9 USD = 1 GBP) [BBC Jan 07]
- * area of the Infosys campus in Bangalore: 40 acres [BBC Jan 07]
- * number of major international companies which have IT operations in
Bangalore: more than 500 [BBC Jan 07]
- * concentration of IT sector in Bangalore: 40 percent of the whole of
India's IT industry [BBC Jan 07]
- * population in Bangalore: estimate for 2015: 10m -- 2006: 6.5m -- 1990: 2.8m --
1970: 1.6m [BBC Jan 07]
- * expected future share by India of the emerging global KPO market: 70% of
the estimated 17bn USD global KPO market (KPO: Knowledge Process
Outsourcing) [DNA May 06]
more on e-commerce on telecom & IT stats page

now there r about 15 million unemployed in america.So even if it bpo employs 2million directly[for the whole world ] outsourcing alone cant be the major reason for americas woes,given the hue and cry thats being raised.

 

[Ras]

again let me repeat, you said india does not beg for jobs but you also concede that they ask for jobs....is the contradiction not glaring at you.

secondly there is nothing wrong with what india is doing from india's perspective, but from the us perspective its not exactly great when you have a whole generation of american graduates wasting their most productive years whilst indians have the opportunities to make hay - its a great deal indians have gotten, they get to get richer whilst americans get poorer

The no of jobs India has taken away is nothing compared to what China has taken away...entire manufacturing towns in the mid west have become ghost towns due to small scale manufacturing going away to China.

As someone said it is give and take...if they send the small jobs to India then India will open markets for American corporations to come in. A lot of American companies are making more profits in Asia compared to the US now. A billion people market is a place to make a lot of money for American corporations.

 

[somebozo]

obama has learned the trick of sleek talking like an indian..he will get billions out of india by selling them made in usa goods which will sustain jobs back at home while indian reserves pour out for imports..business as usual i say...he had been a good salesman!

 

[TATA]

Ridiculous statement, India is the biggest monster eating away small jobs.

So u wanna say know more about USA then the president of USA.

U wanna say are more concerned about USA then the president of USA.

U wanna say have more knowledge then a Howard graduate leading USA as president of USA.

 

[SpArK]

Potential Job breakdown​

Heavy Transport Aircraft:

Boeing and the Indian Air Force have reached preliminary agreement on the purchase of 10 C-17 Globemaster III military transport aircraft, a deal that will make the Indian Air Force the largest owner of a fleet of C-17s outside of the US.
Deal value: $4.1bn. Potential US jobs created: 22,160.

Engine Sale for the Light Combat Aircraft:

General Electric Company on October 1 was declared the lowest bidder and selected to negotiate a contract to provide the Indian Aeronautical Development Agency with 107 F414 engines to be installed on the Tejas light combat aircraft. The deal has yet to go through.
Deal value: $822m. Potential US jobs created: 4,440.

Commercial Aircraft Sale:

Boeing will sell SpiceJet, an Indian low-cost airline, sealed 30 new B737-800 commercial aircraft.
Deal value: $2.7bn. Potential US jobs created: 12,970 jobs.

Gas and Steam Turbine Sale:

General Electric Company singed a deal with Reliance Power, the energy group owned by billionaire industrialist Anil Ambani, to supply six advanced class 9FA gas turbines and three steam turbines for the 2,500-megawatt Samalkot power plant expansion.
Deal value: $750m. Potential US jobs created: 2,650.

Reliance Power and US Ex-Im Bank Agreement:

US ‘s Export – Import Bank and Reliance Power signed a Memorandum of Understanding that will provide Anil Ambani’s power group up to $5bn to boost it electricity production.
Deal Value: $5bn. Potential US jobs created: Not specified.

Diesel Locomotive Manufacturing Venture:

GE Transportation and Electro-Motive Diesel have been selected by the Indian ministry of railways as the sole two bidders for a venture to manufacture and supply 1,000 diesel locomotives over 10 years.
Deal Value: More than $1bn. Potential US jobs created: Not specified.

Sale of US Mining Equipment and Related Support Equipment:

The US’s Export – Import Bank approved more than $900m in export finance guarantees to Sasan Power, a subsidiary of Reliance Power, supporting the sale of US mining equipment and services from Bucyrus International of South Milwaukee, Wisconsin, and other U.S. vendors, in association with the 3,960-megawatt coal-fired Sasan power plant in Madhya Pradesh.
Deal value: $641m. Potential US jobs created: 3,460 jobs.

Several other smaller deals, below $10m, have also been signed but the ones below are the main agreements or MoUs signed.

 

[Hussein]

The no of jobs India has taken away is nothing compared to what China has taken away...entire manufacturing towns in the mid west have become ghost towns due to small scale manufacturing going away to China.

As someone said it is give and take...if they send the small jobs to India then India will open markets for American corporations to come in. A lot of American companies are making more profits in Asia compared to the US now. A billion people market is a place to make a lot of money for American corporations.

it is typically the same in Europe
in a few words you summarize it all. thx.

I have friends in Indonesia > even you see in Indonesia they have one part of the problem.
they are not competitive to some markets so they need to protect the jobs
before it goes to the disaster point

I was teached when i was young the starvation/famine in India
when English made the machine textile and so many Indians couldn't survive it
This is what should be this world focus:
it is important to improve our economy and change our behaviors, but it is important too to protect our citizens against the economic disaster

 

[Swift]

I think some of the issues being raised here is due to the fact that lots of expats / pakistani students who have passed out from US collges with much IT degrees finding it tougher to get jobs in west or feel insecure about it. They dont have IT industry at home to offer them desirable career hence they are ignoring the dynamics. If and only if the leaders had foresight and public had this understanding that peace and good image is only way to attract industry you wouldn't have felt so and instead of complaining about Indian monster you would be competing with it at larger level. The sooner people understand its better that u need to keep business and rhetoric's aloof. I know I will be attracting brickbats but this Kashmir issue have hurt Pakistan than anything else. Lots of fringe elements have understood that keeping alive this issue is good for there agenda and they have been very successful. Now middle class and general public have to understand this and make a right choise for them and next gen.