Indian economy hit the pits in the last quarter of 2012 and now the outsourced jobs to India are starting to move back to their original countries....sad state of affairs and bad news ahead ....
I have said this years ago, Indian bubble would burst spectacularly. They tried to sell themselves as a cheap labor market to the west. But their caliber in many jobs is very very low. Western companies moved to India because of cheap labor because they could hire 3/4 people at the same cost they pay in Europe or America.
But now the Western Economies are hitting the pit, the focus would move from saving to regeneration of old cities, areas and industries. To revive the employment opportunities for the natives. If West doesn't do it, their systems would collapse. Remember it is not just the wages which get moved overseas, but the taxes on the wages also go to the Indians.
Not collecting taxes from the job primarily created by the Western societies have an impact on their Fiscal policies. It could increase their budget deficits, shrink government spendings, which in turn would result in shrinking their economies further. Therefore, it makes sense for the west to bring their jobs back from India.
I don't know about US but here in the UK people are fed up from the professionalism of the Indians on call center jobs. Most companies now advertise that they operate local call centers to give assurances to their customers they wouldn't be listening to a funny Indian on the other side of the Phone calling himself John.(bigsmile)
As for India, watch out, they would sink like titanic in coming years. Have you ever noticed their trade deficit? The cash inflows due to these outsource jobs were the main reason they were floating, otherwise their trade deficit could be horrendous.
Remember, it is not just the people who get paid by the foreign companies who benefit. Obviously because they are within their country India, if they earn good money, they would spend it in India, it stimulates the economy, increase demand of goods and services, which in turn create more jobs.
Plus western companies have built international standard buildings in India which also stimulated Indian economy. Obviously, these companies spent a huge amount on the upkeep and taxes on those buildings. If they hire space, they pay huge rents. All these facts are the reasons India was feeling very upbeat in their economic outlook. Even though this is not widespread, the majority of Indians are poor and not beneficiaries of these jobs bonanza. Nonetheless, Indians were able to provide jobs for their educated graduates.
Once these jobs gone, unemployment for the educated would sink too.
The government gets more taxes, therefore, it has an impact on the budget deficit.
Watch out Indians, the whole house of cards is about to tumble.(bigsmile)
