Re: India Shining...
Varun Venkateswaran <varunvenkat_82-/[email protected]> Thu, 11 Mar 2004 12:08:43 -0800 (PST)
| Newsgroups | gmane.culture.region.india.general |
|---|---|
| Message-ID | <[email protected]> |
--0-213526238-1079035723=:51016 Content-Type: text/plain; charset=us-ascii I am no expert in economics, I cant really prove why there is such a disparity in income levels between two countries for the same job. But I have heard of something called PPP-Purchasing power parity. which takes into account the living standards and purchasing power of a nation. I think pay rates are based on this. Of course, I may be wrong. Correct me if i am , because i am no authority on this but i believe my basic argument is right. Pay for indian workers are commensurate to the living standards in India, with 20$ an hour an Indian can live with the same comfort in India as an American worker earning say $ 40(this is just a comparision, the values are not exact in anyway). I have heard a senior bank executive talking about this PPP factor, he said it is something like 1:5 to 1:10 between US and India, so a product that is $1 in US maynot be Rs. 45 (which it should be if one takes the exchange rate) but it will be like Rs.5 to 10. In absolute exchange rates this is profitable to american companies that outsource jobs, that is why they do, but no raw deal is meted out to Indian workers, it is a win-win situation. Set aside nations, politics, partiotism this is what businesses will always try to do - to get the best product in the cheapest manner possible and thereby make a neat profit. In today's scenario India may fit the bill. But tomorrow, when cost of living rises in India the companies may move elsewhere. So, Indian economy should not be based solely on outsourcing money, but there is nothing wrong in exploiting it. Varun Yamanoor Srihari <yamanoor-/[email protected]> wrote: Politics is dirty everywhere. In fact, before accusing the politicians, I want every Indian to ask himself if he was able to get a ration card or a driver's license without paying a bribe. If he did pay bribe, then why did he (or she) not try to resist? Don't feign compulsions...as the politicians do it anyway.. Srihari "M.S. Suresh" <[email protected]> wrote: USA and UK have recognized the power of India and its vast opulence of skilled labour at low cost. USA has recognized that consumables and textiles imported from India are of far superior quality than even their local ones. Top IT and ITES companies in India have grown so much that they can now compare themselves with the big 5/4 in "all" counts, making India an IT and ITES superpower in the world. Joy and a moment of Pride for patriotic Indians! The well-known secret behind this "Globalization": 1. An american software developer gets around 80000 dollars per annum, while the same job, if contracted offshore to an Indian developer, can be done with a salary of 6000 dollars per annum - a little less than a tenth paid to the american "counterpart". 2. Onsite rates at which consultants from AA, EDS... etc go are in the range of 40$ to 120$ per hour, while the same job, if contracted to an Indian company sending its "ass-ociate" onsite with an H1 or an L1, can be done for 20$ to 80$ per hour. 3. Exported products, (like Coffee, Sugar, Cotton... to name a few) if available in India, cost more, not because they are "good", but because they are "export quality". 4. Quarterly earnings of the leading IT and ITES companies in India sometimes fall short of their guidance value; because the dollar loses to the rupee. 5. No, let us leave this Coca Cola, Pepsi, McDonalds and Monsanto for another session. Once upon a time, there were four rascals - A, B, C and D. All of them hated each other and had their own territories for doing their business - looting public money. Suddenly and Lo, A and B joined together and so did C and D. Let us give them a name - "coalition partners" AB and CD. For quite some time, AB and CD were doing good business - looting public money - and everything was fine. Suddenly and Lo, A and C joined together and so did B and D. Okay, relax, have faith in Nature, and rename them as "coalition partners" AC and BD. Again, the business is good - looting public money - everything was fine. Suddenly and Lo, "seeds" from A, B, C and D start sprouting, and newborns come unto this world - let us call them E, F, G and H. The cycle repeats, this time, among 8 of them instead of 4, with a "matrix" relationship with all possible perms and combs. This time, in addition to minding their own business - looting public money - A, B, C, D, E, F and G do another interesting job: listing out criminal allegations against each other. Hey, who said anything is wrong? Of course, India is shining! It is how you see it. Everything is a state of mind. MSS La vie.. http://www.stanford.edu/~yamanoor http://yamanoor.tblog.com --------------------------------- Do you Yahoo!? Yahoo! Search - Find what youre looking for faster. --------------------------------- Yahoo! Groups Links To visit your group on the web, go to: http://groups.yahoo.com/group/iluIndia/ To unsubscribe from this group, send an email to: [email protected] Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. --------------------------------- Do you Yahoo!? Yahoo! Search - Find what youre looking for faster. --0-213526238-1079035723=:51016 Content-Type: text/html; charset=us-ascii Content-Transfer-Encoding: 8bit <html><body> <DIV>I am no expert in economics, I cant really prove why there is such a disparity in income levels between two countries for the same job.</DIV> <DIV>But I have heard of something called PPP-Purchasing power parity. which takes into account the living standards and purchasing power of a nation. I think pay rates are based on this. Of course, I may be wrong. Correct me if i am , because i am no authority on this but i believe my basic argument is right.</DIV> <DIV>Pay for indian workers are commensurate to the living standards in India, with 20$ an hour an Indian can live with the same comfort in India as an American worker earning say $ 40(this is just a comparision, the values are not exact in anyway). I have heard a senior bank executive talking about this PPP factor, he said it is something like 1:5 to 1:10 between US and India, so a product that is $1 in US maynot be Rs. 45 (which it should be if one takes the exchange rate) but it will be like Rs.5 to 10.</DIV> <DIV>In absolute exchange rates this is profitable to american companies that outsource jobs, that is why they do, but no raw deal is meted out to Indian workers, it is a win-win situation. Set aside nations, politics, partiotism this is what businesses will always try to do - to get the best product in the cheapest manner possible and thereby make a neat profit. In today's scenario India may fit the bill. But tomorrow, when cost of living rises in India the companies may move elsewhere. So, Indian economy should not be based solely on outsourcing money, but there is nothing wrong in exploiting it.</DIV> <DIV> </DIV> <DIV>Varun<BR><BR><B><I>Yamanoor Srihari <yamanoor-/[email protected]></I></B> wrote:</DIV> <BLOCKQUOTE class=replbq style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid"> <DIV>Politics is dirty everywhere. In fact, before accusing the politicians, I want every Indian to ask himself if he was able to get a ration card or a driver's license without paying a bribe. If he did pay bribe, then why did he (or she) not try to resist? Don't feign compulsions...as the politicians do it anyway..</DIV> <DIV> </DIV> <DIV>Srihari<BR><BR><B><I>"M.S. Suresh" <[email protected]></I></B> wrote:</DIV> <BLOCKQUOTE class=replbq style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid"><TT>USA and UK have recognized the power of India and its vast opulence of<BR>skilled labour at low cost. USA has recognized that consumables and<BR>textiles imported from India are of far superior quality than even their<BR>local ones. Top IT and ITES companies in India have grown so much that<BR>they can now compare themselves with the big 5/4 in "all" counts, making<BR>India an IT and ITES superpower in the world. Joy and a moment of Pride<BR>for patriotic Indians!<BR><BR>The well-known secret behind this "Globalization":<BR>1. An american software developer gets around 80000 dollars per annum,<BR>while the same job, if contracted offshore to an Indian developer, can<BR>be done with a salary of 6000 dollars per annum - a little less than a<BR>tenth paid to the american "counterpart".<B R>2. Onsite rates at which consultants from AA, EDS... etc go are in the<BR>range of 40$ to 120$ per hour, while the same job, if contracted to an<BR>Indian company sending its "ass-ociate" onsite with an H1 or an L1, can<BR>be done for 20$ to 80$ per hour.<BR>3. Exported products, (like Coffee, Sugar, Cotton... to name a few) if<BR>available in India, cost more, not because they are "good", but because<BR>they are "export quality".<BR>4. Quarterly earnings of the leading IT and ITES companies in India<BR>sometimes fall short of their guidance value; because the dollar loses<BR>to the rupee.<BR>5. No, let us leave this Coca Cola, Pepsi, McDonalds and Monsanto for<BR>another session.<BR><BR>Once upon a time, there were four rascals - A, B, C and D. All of them<BR>hated each other and had their own territories for doing their business<BR>- looting public money. Suddenly and Lo, A and B joined together and so<BR>did C and D. Let us give them a name - "coalition partners" AB and CD.<BR >For quite some time, AB and CD were doing good business - looting public<BR>money - and everything was fine. Suddenly and Lo, A and C joined<BR>together and so did B and D. Okay, relax, have faith in Nature, and<BR>rename them as "coalition partners" AC and BD. Again, the business is<BR>good - looting public money - everything was fine. Suddenly and Lo,<BR>"seeds" from A, B, C and D start sprouting, and newborns come unto this<BR>world - let us call them E, F, G and H. The cycle repeats, this time,<BR>among 8 of them instead of 4, with a "matrix" relationship with all<BR>possible perms and combs. This time, in addition to minding their own<BR>business - looting public money - A, B, C, D, E, F and G do another<BR>interesting job: listing out criminal allegations against each other.<BR><BR>Hey, who said anything is wrong? Of course, India is shining! It is how<BR>you see it. Everything is a state of mind.<BR><BR>MSS<BR><BR><BR><BR></TT><BR></BLOCKQUOTE><BR><BR> <DIV> <DIV> <DIV><FONT color=darkblue> <P align=left>La vie..</P> <P align=left><A href="http://www.stanford.edu/~yamanoor">http://www.stanford.edu/~yamanoor</A></P> <P align=left><A href="http://yamanoor.tblog.com/">http://yamanoor.tblog.com</A></P> <P align=left> </P> <P align=left> </P></FONT></DIV></DIV></DIV> <P> <HR SIZE=1> Do you Yahoo!?<BR>Yahoo! Search - <A href="http://search.yahoo.com/?fr=ad-mailsig-home">Find what youre looking for faster.</A> </BLOCKQUOTE><p><hr SIZE=1> Do you Yahoo!?<br> Yahoo! Search - <a href="http://search.yahoo.com/?fr=ad-mailsig-home">Find what youre looking for faster.</a> </body></html> --0-213526238-1079035723=:51016--