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The good news? Call centers are coming back to the United States. The bad news? That means that it's now almost as cheap to open a call center in the United States as it is to open one in India, which has about 410 million people living in poverty.

From today's FT:

High unemployment levels have driven down wages for some low-skilled outsourcing services in some parts of the US, particularly among the Hispanic population.

At the same time, wages in India’s outsourcing sector have risen by 10 per cent this year and senior outsourcing managers based in the country command salaries above global averages.

Pramod Bhasin, the chief executive of Genpact, said his company expected to treble its workforce in the US over the next two years, from about 1,500 employees now.

“We need to be very aware [of what’s available] as people [in the US] are open to working at home and working at lower salaries than they were used to,” said Mr Bhasin. “We can hire some seasoned executives with experience in the US for less money.”

So if a rising tide lifts all boats, what does a sinking tide do?

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Kenneth
Joined
Jul '10
Kenneth

Thin edge of the wedge.

Which is why one should guide young people into jobs that can only be done here at home.

Like government work. Or prostitution. (Oh, is that redundant?)

Mel Foil
Joined
Jun '10
etoiledunord

Americans probably understand more types of thickly-accented English, and less-common American dialects. That might be part of the reason to come back from India. If you grow up in New York City for example, you've heard, and had to understand lots of local jargon and tortured English, that nobody in India would hear growing up.

Kenneth
Joined
Jul '10
Kenneth
etoiledunord: Americans probably understand more types of thickly-accented English, and less-common American dialects. That might be part of the reason to come back from India. If you grow up in New York City for example, you've heard, and had to understand lots of local jargon and tortured English, that nobody in India would hear growing up. · Aug 18 at 9:02am

"Tortured English"?

Whaatcha taaawkin' about?

Mel Foil
Joined
Jun '10
etoiledunord

Kenneth

etoiledunord: · Aug 18 at 9:02am

"Tortured English"?

Whaatcha taaawkin' about? · Aug 18 at 9:08am

Uffda, ja got all dem tick accents what normal folks can hardly figure ooout. You bet it ain't like here, where we don't got no accent.


Joined
Jul '10
Your Grace

By the time the left is finished spreading around the poverty around, those of us who don't work for government can look forward to rice balls and fish heads for dinner.


Joined
May '10
Steve MacDonald

Like it or not, we have a global economy and flows like this happen. I don't see it lasting however as the government is moving towards the Western Europe economic model at light speed. We have the approx. 10% unemployment, the marginal growth, the govt. controlled industries, the crony capitalism, the arrogant elitism. Soon to come will be anemic productivity growth, sky high taxes and benefit costs, prohibitive energy costs etc. that will have these outsourced industries heading back to the developing world.

As I have a few friends with call center businesses in the Philippines, I hope this blip is not too disruptive for all concerned.


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