Boeing and Airbus now employ hundreds of Indians in challenging tasks like writing software for next-generation cockpits and building systems to prevent airborne collisions. Investment banks like Morgan Stanley are hiring Indians to analyze American stocks, jobs that commonly pay six-figure salaries on Wall Street.
With multinationals employing tens of thousands of Indians, some are beginning to treat the country like a second headquarters, sending senior executives with global responsibilities to work there. For example, Cisco Systems, the leading maker of communications equipment, has decided that 20 percent of its top talent should be in India within five years; it recently moved one of its highest-ranking executives, Wim Elfrink, to Bangalore, the center of the Indian industry, as chief globalization officer.
Accenture, the global consulting giant, has its worldwide head of business-process outsourcing in Bangalore; by December it expects to have more employees in India than in the United States.
This is not a zero-sum game, in which every job added in India comes at the expense of an American or European one. In many ways, the shift reflects a changing view at multinational companies as they find it easier to meet growing demand by taking advantage of the improved skills of newly educated people in the developing world. And some companies are returning certain jobs to the United States, finding that the work in India and elsewhere is not up to snuff. But there are trade-offs as well.
As Indian back offices become more sophisticated, Western companies are finding that large parts of their work, even high-end tasks, can also be done from India. From the consumer perspective, India has emerged as a pool of 1.
And so many companies are shifting their energy to where they see their futures being written. Cannon-Brookes, vice president for business development in India and China at I.
The increasing interest of Western companies in rapidly developing countries like India, China and Brazil came to the fore last week. Prince III, that the company planned to eliminate or reassign at least 26, jobs, 8 percent of its staff.
It will move many jobs to less costly American cities, and others to India. The bank has 22, employees in India, who are not part of the cuts. To underline the shifting geography of opportunity, Mr.
Still, specialists warned that a continued flow of work to India required drastic improvements in its educational system and basic facilities. Water and power shortages are endemic, and industry experts predict that India could lack , engineers by Yet the country has already tapped a deep well of English-speaking engineers, attracting more outsourced work than any other country. Alan S.
View all New York Times newsletters. But Mr. Blinder, who teaches at Princeton, added that the consequence should not be large-scale unemployment but a shift in Western job markets. The West, he argued, would shed jobs in easily outsourced fields, like accounting, and increase work among jobs like police officers and doctors, which must be done in person.
At the forefront of the outsourcing business is Infosys Technologies, an Indian company that has pursued a strategy of reinvesting the profits from low-skilled work into a vast upgrading of skills to prove itself to Western companies and fend off rivals from China, Eastern Europe and elsewhere.
A few years ago, Airbus and Boeing were outsourcing work like digitizing old hand drawings. But they have begun to rely on their Indian suppliers for even more complex work, hiring aerospace engineers from state-owned aviation companies and scholars from Indian engineering colleges. Airbus hired Infosys, which is based in Bangalore, to design part of the wing of the superjumbo A aircraft. It is working with another supplier, Tata Consultancy Services, to build software for cockpits, with up to half of the hundreds of switches removed and replaced by touch screens.
Airbus has hired a third Indian company to design and build jet doors.
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