US giants to outsource more to India

Intel, the world's largest chipmaker, and JP Morgan Chase, the global investment banker, said on Monday that they would outsource significant operations to India, an indication that more complex, high-value work is moving here. Intel, based in Santa Clara, California, will invest more than US$1 billion in India over the next five years, of which US$800 million will go to expanding its research and development center in Bangalore, the company's chairman, Craig Barrett, said in a statement during a visit to New Delhi.

Intel's news followed the announcement in October that Cisco Systems would invest US$1.1 billion and triple its staff in India, from 1,400 to more than 4,000, in three years.

Intel's Bangalore center employs around 3,000 engineers who design and develop products. Barrett said on Monday that its latest investment "demonstrates Intel's long-term commitment."

Intel will invest the remaining approximately US$250 million as venture capital in technology companies.

JP Morgan Chase said it would add 4,500 employees in India by 2007, mainly by setting up operations in Bangalore to support its growing structured finance and derivatives businesses globally. The company will hire a mix of recent graduates and experienced workers and will double the size of its India operations. All 4,500 of JP Morgan Chase's current employees in India are based in Mumbai.

The bank made news two years ago when it became the first global investment bank to hire 35 equity researchers in India to support its operations on Wall Street.

"In our experience, we have found high-quality, low-cost staff in India and we want to continue investing in the country," said Michael Golden, a spokesman for the bank who is based in London."The investment is about meeting the growing needs of our business and not about shipping jobs from another location."

Wall Street firms and large global banks have been particularly aggressive in outsourcing work to India in recent months. UBS said it would open its first center in Hyderabad with 500 jobs early next year. Goldman Sachs has 750 people in its center in Bangalore but has a capacity for 1,500 employees.

"This is way beyond mere cost savings," Madhavi Mantha, a senior banking analyst at the financial consultancy Celent, said from Montreal. "Unless global banks are comfortable with the quality of work, they would not risk taking the work offshore."

JP Morgan Chase said the new employees will process complex derivatives settlements and structured finance transactions. The company will hire about 400 people a month. By 2007, it will have almost a third of its back-office and support jobs, about 3,000, in India.

Offshoring of work to India has steadily risen in the last few years, despite political discomfort in the US over the trend. Recently, high-end jobs in areas like chip design and complex product design have been added to the relatively low-end call center and paid-by-the-hour software coding work.

Though salaries in India are climbing rapidly for entry-level workers and top managers, Indian employees still earn less than a fifth of what their peers in the US do. This story has been viewed 45 times. Advertising

Yeah I do

If you don't hire American workers but prefer instead to "outsource" your work from this country to overseas countries simply because you are too friggin cheap to pay for American Labor, then you don't need my business.

Yeah I have heard of BP it stands for British Petroleum and no I don't buy gas there.

The problem in this country isn't the Businesses who outsource, but the Government Regulations, I realize that.

But if American Companies are doing business inside this country then they should hire American Workers to do the jobs. If you want to outsource, that is your right.

But if I am aware of it, you won't get my business.

Period and end of discussion.

But if I am aware of it, you won't get my business. Period and end of discussion.

Of course it's the end: you simply refuse to think, so there is nothing to discuss.

YOu simply repeated your DESIRES. I pointed out to you that, no matter what your desires are, you simply cannot KNOW what produces what in which country. And, in addition, those companies from whom you do buy and with whom you do business also OUTSOURCE.

If you read other posts you will also learn that your do not stand for American workers: you only stand for some.

In some, you refuse to learn and even to think. Your discrimination is as fair and well-founded as not buying from companies whose name begins with D or S.

Well, enjoy; feel smart and patriotic while you are discriminating against your fellow Americans on a whim.

Have a good day.

If you can do your job from home, it can be done halfway around the globe.

I can do my job from home, but only after making a physical visit to determine exactly what needs to be done. When I'm finished doing the hardware/software engineering at home, I have to take the work product back out into the field. Some of the field visits are located behind doors with spin dials. Some are in foreign countries. Some are in rail yards strewn across the U.S. Some are in funny looking aircraft. I'm not really worried about job security.

I've thought plenty and my decision is I won't do business with jackasses that send their work overseas when Americans can do the same job here.

Do not even pretend to know what I think or to tell me I don't think.

I have read other posts and I don't come away with the same impression you do.

If you don't like that, that's just to damned bad.

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