As someone who grew up in America during that time, this is the exact opposite that I was told by the media and teachers. We were taught that Indians were just as effective (if not more) than people working in the US and that we shouldn't select jobs that will be outsourced in the future (like programming). In fact computer science enrollment in many colleges were at an all-time low during that time because of outsourcing fear.
So I completely disagree with your generalization that many Americans thought Indians were worse at programming.
Economists explained that software is a highly "tradeable good" and Asia -- especially India -- was filled with millions of highly educated cheap programmers.
Given that the number of people employed in software in America has remained constant since 2000, and that wages are about where they were then too, I think the evidence is that there has been a substantial "pressure release valve" effect going on. So while the most dire predictions of the 2000s haven't come true, it's also true that the confident optimism of the 1990s ill advised.
I would say that software development has been good to me so far as a career, but I still think I would hesitate to encourage a young person in America to pursue it.
This is absolutely terrible advice. Please do not ruin some young American's life with this advice. Technology seems to be one are where the demand seems to always outstrip supply, and a person trained in Computer Science would be capable of learning new skills and advancing rapidly in the tech industry.
Furthermore, since it the complexity of software grows exponentially rather than linearly, I believe that as the number of software developers grows linearly, the demand will grow exponentially ;).
Of course it depends on the market, but I disagree that is just SF. Seattle, NYC, SoCal (LA, San Diego etc.), Boston, Austin all have a thriving tech sector, although Bay Area still far outstrips them in demand and compensation.
I'm a bit of an oddity in that I took summer / nighttime college courses in 1995, when I was 10, then had a job programming right during the dot com bust. Everyone said that even if tech recovered it would probably all go to India so when I entered full-time university I went so far as to study structural engineering, something I didn't think would be easy to outsource.
When I transitioned back to software I was actually shocked at how big of a skill difference the median Indian and American / Canadian actually had. The top 1% between the two cultures is similar, but the median Indian, circa 2009 when I last interacted with them, was far behind.
1. IBM offices and most multinationals do pay competitive salary in India. We have the same problem with retaining talent in India that we have in US. Its hard to retain good programmers.
2.Thanks to US immigration system, you do find a lot of folks with deep experience working for firms in US for years return back to India. They carry with them the best practices that they learnt in US. Some of these people also attend US universities.
3. At least the big fives (I don't know about IBM) have consistent coding and code review standards across geographies and use similar frameworks, deployment and monitoring tool chains. So there is not as big of an impact as you think on coding standards across geographies, be it Dublin, Sydney or Bangalore. It usually tends to be the same.
I'm still banking on American workers to prove these companies wrong via innovation from within our borders, boycotting software companies who offshore American innovation and unionize or something to that effect to protect American workers here.
My thoughts are not about race, creed, religion or anything against India or Indian Programmers, it's about protecting American workers for American families here and in the future.
> This racism is again mirrored in the huge salary difference. Are those Indian workers really worth so much less?
Corporations pay people what they'll accept. Since many Indians are essentially doing salary arbitrage between what they'd make in India and the US, they'll accept less. Also, cost of living in India is much lower.
Literally none of what you've explained here is a result of racism, just economics.
Let's say, an engineer's monthly salary is $10,000 in the US and he can afford X level of arbitrary "comforts in life". To be able to afford the same X level of arbitrary "comforts of life" in India, he'd need just $3000 - $3500.
These numbers are for illustration purposes only. Actuals will vary. of course.
Is this true? I am ignorant of actual prices in Bay Area, but people are always complaining of high housing prices there.
http://www.mercurynews.com/2017/09/25/about-silicon-valleys-...
When I bought in 2001, every house on the peninsula (between San Francisco and San Jose) no matter what condition had at least a dozen offers and it's worse now. http://www.mercurynews.com/2017/04/13/sjm-shortage-0414/
5-6X will not get you a nice house in a nice area. It will just get you a small house. In San Jose, the cheapest ones I'm seeing are in the 500-600K range - smaller than 1000 sq ft.
https://www.numbeo.com/cost-of-living/compare_cities.jsp?cit...
That doesn't make it right to do or that this behavior will get the high quality talent pool every company says they will hire. So why do you think that it will work in this case?
If you thin this is 10 years ago, you should watch some threads here and on /r/programming about people on H1b visas.
I've been working with and leading international teams for almost 10 years now, mainly with teams in India.
I see a huge gap between skillset and proficiency between the US, Europe and India. But I must qualify this - I've most been working with some of the large outsourcing companies in India, Capgemini, Infosys and Cognizant, and these companies are where you find unbelievably bad coders. I often literally have to interview 20+ candidates before I find anyone even half decent, and even then, the level is much less than a candidate with similar time-served from Europe or the US.
This shouldn't be surprising if you see how such companies run development projects when left to their own devices; they will staff a project with 5-10x more devs than would be used elsewhere, and everyone works on an unimaginably narrow part of the project - someone might literally do nothing but write maps for the ORM, another person might do nothing but edit config files. It's madness.
I have however had excellent experiences with Indian devs on the rare occasions where I've been permitted to use small, development-focused businesses. Excellent developers absolutely exist in India - but they are as rare as hens' teeth the big body shops.
I should tell you that these big body shops have a reputation for hiring really bad programmers, basically because they have "processes" that they use to turn these people into problem solvers in very specific domains. More often than not, that is what their clients want as well: human eyes on a system designed and written by someone else. When in college, these were known as "bus" companies, because they would give job offers to a busload of students, but all the offers were pitiful and the work horrible.
Just like you noticed, if you want to see real talent, look elsewhere.
But on other hand, I have a theory. Indian firms write a lot more code. Their code quality distribution probably is same as any other group but since there is more code, a large percentage of overall bad code comes from India.
It is kind of like some teams in a large organization write a lot of code but they are the one with the most bugs and they get punished. Another team that rarely has bugs but they don't write as much as code as others and are rewarded for introducing least number of bugs in production.
Also, I personally feel there is fundamental difference is how Indians interview the candidates. Indian interviewers usually try to identify the weakness of a candidate (if there is a fullstack opening and the candidate's strength is more on the backend, the interviewer leans more towards frontend to identify the weaknesses of a candidate). Non-Indian interviewers most try to find the strengths of a candidate. When I attend interviews and see a panel with Indian names, I know that those slots suck.
Of course exceptions apply for everything..just my observation being Indian working in Indian teams..
Despite the risk, it's easier to toss these responsibilities to a junior-level developer overseas than to maintain a 20-year veteran in the New York office.
This overall reduced cost to a company is significant enough to invest in the market. As India is still considered a developing country, the quality of life, while debatable, would be considered a downgrade for many who could potentially be poached from other regions.
Which is exactly what he was saying.
And, all the money in the world can't buy good air quality.
Tech companies are especially inclined or incentivized to offshore work because their highest cost/liability sinks are their employees. Other sectors, a significant portion of their costs/liabilities are equipment, supplies, etc. Tech industry is unique in that their employees are their biggest liabilities.
I know that tech companies have been struggling the past decade+ on trying to rein in their employee costs. HR departments have trying hard to lower employee costs.
The move to bring in more women and minorities into tech is a commendable goal by FB, GOOGL and the tech industry, but it's also driven by rising employee costs. It's not spoken about widely and openly but these companies are desperate to get control over rising salaries/costs in the industry.
Diversity is a great way to maintain and lower employee costs that have political/social benefits. Another way to lower costs is offshoring, but that has a lot of political/social costs.
But profits are profits and costs are costs. The industry isn't going to stop offshoring because of bad publicity given how much they stand to gain.
IBM and other US firms do in fact pay locally competitive and generous (but not outrageous) salaries in India, as well as other foreign talent hotspots like Romania and Estonia.
Where are you getting this info from? I have grown up in America and never heard of this.
There are companies doing great work in India (Zoho comes to mind). Why would anyone want to use IBM as the representative of Indian innovation?
That statement is racist
They don't poach devs, rather acquire a full development unit.
Question: Now IBM charges probably $300/hour per programmer. Even if it is $100 and I understand that not every hour is billed, but why isn't IBM making way more money given Indian wages?
And that suggests that IBM is not making more money because IBM's work culture has not adapted well to changes in the global economy. It may be that they have shifted to India workers because they are no longer capable of monetizing their workers to an extent great enough to pay competitive salaries in the US, rather than some factor resulting from their reliance on India. It could also be both, creating a vicious feedback cycle.
In short, problem is that IBM is IBM, not that IBM is full of Indians.
did they? either way, i think you're equivocating. it's not a "racial" or "ethnic" connotated "indian code" that some people sometimes discuss. it's more in the domain of economics, geopolitics and "IT body shops". everyone has seen brilliant indians accomplishing great things.
> The idea of Indians actually working innovative jobs seemed laughable to many Americans.
this seems like a strawman. ten years ago, people thought IT in america would cease to exist in any meaningful capacity because of outsourcing.
> This racism is again mirrored in the huge salary difference. Are those Indian workers really worth so much less?
this doesn't make much sense to me, so some clarification would help. you cannot directly compare an absolute number in two economies. you can't even meaningfully do it between (say) san fransciso and knoxville.
> One thing is certain to me, that low salary is hurting IBM. By not paying a competitive salary, those IBM offices in India are lacking the deep experience of western programmers.
again, you cannot pay a salary that is absurdly huge and completely incongruent with the local economy - be it within india, the us or any other place. at least, not on a large scale. if you payed a wage translated directly from san francisco to india, your purchasing power would be massively inflated over the vast majority of people with "normal" salaries.
it also means that the burdens and inefficiencies of international work would not be offset, and so IBM and others probably wouldn't even be there in the first place.
> In the pictures, everyone there is Indian, and that hurts the company as a whole. Diversity is more than just not being all white. Diversity means not being exclusive to any background and ethnicity.
it's india. talking about "diversity" and "white" as you are doing is just... well, it seems rather ignorant, parochial and prescriptive.
> Edit: I have yet to hear of anyone (European or American) from the sectors I work in, being poached to work in India.
unless you're planning on staying permanently, it's not an economically advantageous thing to do. not necessarily because of the salary relative to local norms, but rather when you return to a the US or Europe or wherever, your savings accrued will be less than if you had stayed.
It's hard to not fall into this trap in certain fields of IT. To the point it's almost not regarded as racist
Though as a Systems Admin, outsourcing is considered more of a joke than anything. The lowest bidding contractor wins, and the people they hire are absolutely abysmal.
If contracting companies did the same thing, but hiring a 100% "American workforce" (or British/Australia/etc), and they did an equally mediocre job, I'd suspect the derision would shift accordingly
There's a lot of smart Indian people. They're no "better" or "worse" than the rest of us. They're just a larger sample size that get tarred with that brush
Nobody anywhere in the world is paid what they are "worth". They are paid whatever is necessary to keep them at the company. In other words, as an employee the competition is other employees in the same market.
It has nothing to do with racism, that's just intellectually lazy.
>By not paying a competitive salary, those IBM offices in India are lacking the deep experience of western programmers.
Paying a higher salary doesn't suddenly make the Indian workers smarter. It just makes the job more attractive to where the stronger experience is (currently the US).
"It often takes 2 and sometimes 3 Indian employees to perform the role of the North America diluting the savings." https://nyti.ms/2yxCQGX
Now that IBM has more people in India than in the US, maybe they will find that they face the opposite problem: US workers will have to adapt to their Indian counterparts instead of the other way around, so it will be more productive to hire an additional Indian than an additional American.
But all of it is just anecdotal evidence (it goes both ways).You are not only forgetting about how economics work but also evidently omitting how that happened that US is so rich and can afford paying such salaries.
I really do not want to elaborate more but todays tech companies create such huge social disparities in India that literally everyone wants to work in IT just to uplift himself from "3rd world poor" to EE standards.
This racism is again mirrored in the huge salary difference. Are those Indian workers really worth so much less?
One thing is certain to me, that low salary is hurting IBM. By not paying a competitive salary, those IBM offices in India are lacking the deep experience of western programmers. In a way, they have to re-invent the wheel. In the pictures, everyone there is Indian, and that hurts the company as a whole. Diversity is more than just not being all white. Diversity means not being exclusive to any background and ethnicity.
Edit: I have yet to hear of anyone (European or American) from the sectors I work in, being poached to work in India.