In the tech sector at least, the relative salaries of employees located in India is still significantly lower than those in most America metropolitan locations.
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.
"the quality of life, while debatable, would be considered a downgrade for many who could potentially be poached from other regions". Why would it be a downgrade. If they paid an American $120k a year to live in Bangalore, that would buy the American a nice villa, pay for several servants, and allow for frequent travel. In SF, that same money gets you a shoe-box apartment.
I guess you could also use that money to buy a diesel generator so you don't suffer from the daily power outages and you can buy a great water filtration system so you don't have to worry about ever drinking unclean water either.
Much of Bangalore and modern Indian cities are almost at par with San Francisco as far as Infrastructure goes. How do I know this? I travel to India 3 times a year for work.
Sorry you are so wrong. What do you consider infrastructure? I have lived in the bay area and in Bangalore, I have no idea how you can even compare them in terms of roads, city planning, utilities agencies, Civic agencies etc. I think the exchange rate of your country's currency allows you to stay at top tier places when you visit India, that's why you'd experience India differently than Indians.
Living in Prague, I visited the Bay Area recently. I've never felt more like I was in a 3rd world country. Not even when I was in the norther Czech Republic which is in REALLY bad shape. I mean, have you been to oakland? The place looks like a war zone.
I would agree with you if you would have compared Austin to Bangalore. But the fact is : San Francisco is in as terrible shape as Bangalore is. So moving from San Francisco to Bangalore would not lower your quality of life at all.
>I think the exchange rate of your country's currency allows you to stay at top tier places when you visit India, that's why you'd experience India differently than Indians.
I live in Bangalore and I'd say he's correct. Bangalore might be better compared to other Indian cities, but nowhere near the level of a American city. There are issues with power outages, water quality/shortage, absurd traffic jams where you'll be stranded for hours, costly real estate and even rent.
My point was, that they should pay westerners that kind of money to move there, in order to pull experience in. India has plenty of talent, but they don't have so much experience.
> This overall reduced cost to a company is significant enough to invest in the market.
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.
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.