[nasional_list] [ppiindia] Exportation of high tech jobs to India worries Bingaman

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  • Date: Tue, 8 Feb 2005 10:09:37 +0000 (GMT)

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New Mexico Business Weekly - February 7, 2005
http://albuquerque.bizjournals.com/albuquerque/stories/2005/02/07/story7.html
 

 

EXCLUSIVE REPORTS
From the February 4, 2005 print edition
Exportation of high tech jobs to India worries
Bingaman
Dennis Domrzalski
NMBW Staff

U.S. Sen. Jeff Bingaman, D-NM, was alarmed as he
stared at the computer screen in the research and
development center in Bangalore, India. The scientists
and technicians were typing in orders and directions
to ensure that the power plant they were controlling
was operating correctly, efficiently and safely. 

Bingaman wasn't concerned that the technicians would
type incorrect orders into the computer. He knew that
wouldn't happen. What concerned him was that the plant
the engineers in Bangalore were operating via computer
was in the state of Indiana, and that such high-tech
jobs that the U.S. once thought it owned were being
outsourced to India. 

In fact, during a recent, nine-day fact-finding trip
to India, Bingaman learned what many Americans don't
know and might not want to hear: That it isn't just
low-tech, call center types of jobs that are being
outsourced to India and other countries, and that the
U.S. might be losing its high-tech competitive edge. 

"People who think that the outsourcing of work to
India involves just low-end jobs are very confused,"
Bingaman says. "There is a lot of world-class research
going on there in the areas of biotech and information
technologies. It surprised me to see the investments
that companies are making in India and of the
cutting-edge work they are doing there." 

Bingaman saw the Indiana power plant being operated
from General Electric's John F. Welch Technology
Center in Bangalore, GE's first and largest
multidisciplinary research and development center
outside of the U.S. The facility employs more than
1,600 scientists who work on things like
electromagnetic analytics, composite material design,
molecular modeling, microelectromechanical systems
(MEMS) and computational fluid dynamics. 

Later in the trip, Bingaman visited Intel Corp.'s
Intel India Design Center in Bangalore, a
200,000-square-foot research and development facility
that employs 900 and includes the most Intel divisions
outside of the U.S. Since its inception in 1999, the
Design Center has grown quickly because of India's
information technology and engineering talent pool,
the facility's Web site says. 

Bingaman doesn't begrudge India the facilities and the
high-tech work; he just wishes that Americans will
realize that they are now competing with the rest of
the world, even for high-tech research and development
jobs that were once considered America's exclusive
domain, and that the nation must work harder to
maintain its competitive edge. 

To do that, the U.S. must improve its educational
system and must invest in a more coordinated way in
high-tech research and development, Bingaman says. So,
Bingaman says he will reintroduce in Congress a bill
that will authorize the U.S. Department of Commerce to
spend more than $1 billion in the next five years in
loans and grants for the construction of 20 new,
world-class science parks. 

"The benefits of science parks are clear. In
Albuquerque, the six-year-old Sandia Science and
Technology Park is now home to 19 entities that employ
a combined total of nearly 1,000," Bingaman says.
"These high-wage jobs wouldn't exist in our state
without the science park, and I believe that this is
just the beginning. 

"The bill also would provide tax incentives for
businesses looking to locate in science parks,
including accelerated capital depreciation, a tax
credit for employees trained at local universities and
vocational institutions, and a tax credit for
companies that invest in universities and laboratories
performing research." 

Bingman says Americans have no idea how much
competition there is in the world for high-tech jobs.
He found out while visiting the Infosys Technologies
LTD facility in Bangalore. The company had wanted to
hire software engineers and other information
technology specialists in 2004. The company's
advertisements generated 1.2 million applications in
India. It tested 300,000 of those people, interviewed
30,000 of them and wound up hiring 10,000. 

"I think there needs to be a wakeup call as to what is
going on," Bingaman says. 

ddomrzalski@xxxxxxxxxxxxxxx | 348-8322



© 2005 American City Business Journal



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