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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1447.0. "Is Digital shipping programming work to India?" by METAFR::MEAGHER () Mon Apr 29 1991 18:45

From an article called "Can the U.S. Stay Ahead in Software?" in the March 11,
1991 Business Week:

"Developing nations are pushing their own software agendas. In India, the
government has lowered import duties on foreign hardware and encouraged schools
and universities to train more programmers. The country now has about 100,000
software professionals. The result is a burgeoning local industry, including a
substantial business in contract programming. U.S. banks such as Citicorp and
computer makers including Digital Equipment and Hewlett-Packard are shipping
work to India, where programmers earn 30% to 60% of what American programmers
are paid. 'There is an almost limitless supply of people getting trained in
computer science there,' says Edward J. Selleck, DEC's India export development
manager."
T.RTitleUserPersonal
Name
DateLines
1447.1Yes it is trueSMAUG::GARRODAn Englishman's mind works best when it is almost too lateMon Apr 29 1991 20:344
    From what I understand this is true. And I say good luck to India.
    I'm all for it. That's what global competition is all about.
    
    Dave
1447.2America's just *too* expensiveCSC32::K_BOUCHARDKen Bouchard CXO3-2Mon Apr 29 1991 21:595
    Geez,I guess it won't be long before our entire corporate organization
    moves to an off-shore island,say SriLanka. I hear office space is real
    cheap there and *office help*,ha! it's cheap,cheap cheap!
    
    Ken
1447.3The SWS/EIS/DS field offices have used ...YUPPIE::COLESomedays the bug, somedays the windshield!Tue Apr 30 1991 13:006
	... Digital Equip. of India, Limited (DEIL) for the last few years
to staff residencies where it was unprofitable to reloc a US employee.  We
eventually hired one permanently in Alabama, I think.

	Even our US-owned "staff supplement" partners use Indians quite a
bit.
1447.4It's good quality work.AKOV05::RUSSELLF = ma, ...sometimes.Tue Apr 30 1991 16:3911
    DEIL is not a subsidiary of Digital (c).  It is a joint venture with 
    Hindutron 30%
    Govt India 30%
    DEC (c) 40%
    We  1) manufacture for the local marketplace.
    	2) subcontract a lot of code crunching through them.
    There are a lot of these guys here in the States working for us.
    It's a great deal. We get the cream of the crop of 700 million
    potential programmers.
    
    Chris,
1447.5and good peopleHAMPS::SELBY_MTue Apr 30 1991 18:3910
    In a country where the sales tax is over 100%, the export of software
    is a benefit both to a very gloomy national trade balance and to DEIL's
    success in the Indian market.  Having spent time in India recently I
    would just like to show some appreciation for the outstanding folks
    working there and for the incredible support they are providing on some
    very large projects at the moment.
    
    Keep up the great work folks
    
    Mark
1447.6Trade agreement with IndiaSENIOR::HAMBURGERWhittlers chip away at lifeThu May 02 1991 00:5910

I used several contracted people from DEIL in the past years. They were 
good people who contributed to my group and did excellent work. In part, 
our use of this arrangement was part of the agreement with the Indian 
government when we built a plant in India. I believe it is their trade laws 
that required us to do more than just use the population for inexpensive 
assembly labor. 

    Vic
1447.7a subtle toneBOSACT::CHERSONinquiring minds want to knowFri May 03 1991 16:2234
       
    >There are a lot of these guys here in the States working for us.         
    >It's a great deal. We get the cream of the crop of 700 million
    >potential programmers.
    
    I haven't got much time for long replies, but I can relate an
    experience I had when I worked for Field Service Logistics engineering. 
    We had several of the Hindutron people working with us, and they had a
    need for documenting their work.  At the time I was involved in trying
    to implement "paperless processing" into the organization, and compound
    document editors were a part of that.  I had both Interleaf and
    DECwrite, and the Hindutron people asked me if they could use one of
    the workstations to write with those applications.  I agreed, but asked
    them if they wanted some instruction or at least look at the user's
    guides and they declined.  Ironically while I was having all sorts of
    problems getting our people to use the new tools, the Hiditron
    engineers were up and running in no time flat, without documentation!
    
    I'd like to make one comment concerning the tone of this note and the
    other (#1431?) re:"tax havens".  There seems to be a subtle underlying 
    racist tone to these discussions, or at least what I would consider an
    anti-third world attitude.
    
    Blaming the downsizing of manufacturing on the third world is a cop
    out, plain and simple.  You are ignoring the processes that are
    influencing these decisions.  You are also ignoring the fact that
    Digital is an international company, not an American one.  This has
    been stated by K.O. on several occasions.
    
    I am not in favor of layoffs, but perhaps people could wake up to the
    big picture and try to contribute to solutions that will prevent
    further downsizing.
    
    --David  
1447.8SQM::MACDONALDFri May 03 1991 16:4423
    
    Re: .7
    
    > Ironically while I was having all sorts of problems getting our
    > people to use the new tools, the Hiditron engineers were up and
    > running in no time flat, without documentation!
    
    This doesn't surprise me.  I have encountered incredible resistance
    in Digital to changes whether major or minor.  We had better overcome
    this problem.  Frankly, I think this resistance to change IS the
    problem.
    
    > I'd like to make one comment concerning the tone of this note and the
    > other (#1431?) re:"tax havens".  There seems to be a subtle underlying 
    > racist tone to these discussions, or at least what I would consider an
    > anti-third world attitude.
    
    While I agree totally with what you go on to say, I believe it is more
    Nationalist than racist i.e. hurrah for the good ole USA and to heck
    with the rest of the world.  This will sink us if we don't wake up.
    
    Steve
    
1447.9RICKS::SHERMANECADSR::SHERMAN 225-5487, 223-3326Sat May 04 1991 02:087
    Digital needs good people.  If the good people are in India, better
    that they work for us than for our competition.  Same goes for anywhere
    in the world since we are a global company and the competition is also
    global.  Heaven help us if we are laying off or turning away good people 
    because of anything other than good business sense.
    
    Steve
1447.10MILKWY::MORRISONBob M. FXO-1/28 228-5357Sun May 19 1991 22:1022
  I first heard about India's booming software industry a year ago. Until then
I thought U.S. software engineers' jobs were relatively safe. Now every U.S.
software engineer must watch this trend carefully to make sure he/she is not
"blindsided".
  I read somewhere that one reason why so many U.S. companies are setting up
programming operations in India is that there are heavy restrictions on import-
ing software into India and having the software written in India is the best way
to deal with these restrictions. But it's obvious that a lot of the software
written in India is being written for export. Why do U.S. companies have such
a strong preference for this? So far we have mentioned a big savings on labor
costs, Indians being more willing to accept change, and the fact that India has
a much larger population base from which we can draw the "cream of the crop". 
I think U.S. software engineers *should* be concerned about this. It's really
not much different from the issue of U.S. manufacturing jobs being exported to
Mexico or Hong Kong. Software is very easy to transport; in fact, it doesn't
need any "transportation" at all in the traditional sense. One factor that is
keeping some manufacturing jobs in the U.S. is the cost of transporting heavy
products, such as locomotives, around the world. Of course, shipping costs are
never high enough to ensure that all items of a given product that are sold in
the U.S. will be made in the U.S., but if shipping costs are not a factor, it
makes it much easier for a U.S. company to move the manufacturing of that pro-
duct (in this case, software) offshore.
1447.11we are our own worst enemyCVG::THOMPSONSemper GumbySun May 19 1991 23:4522
	RE: .10 I agree that US programmers should be concerned. But the fault
	if there is any for the move to off shore programming belongs to US
	programmers and their managers. I believe that both our quality and 
	productivity is pretty poor. I've read a lot of code over the last 19 
	years and there is not too much of it very good. I've written a lot as 
	well and while there is some that I am quite proud of there was also 
	some that I'd rather do over now that I've learned a bit. There is also
	quite a bit that would never have to have been coded if proper 
	productivity tools were available. But in the US it seems like everyone 
	wants to re invent the sort routine, the parsing routine, the 
	schedualling routine, and on an on. Re-usable code is pooh poohed in 
	the US. But not elsewhere.

	Code reviews are given little more then lip service. Testing? "You want
	the code tested?"  "I'm sorry I can't fix that bug I'm working on new
	features." "Yeah, I know there are bugs but management says we have
	to meet the time to market goal." When US management gets serious
	about quality and supplies the enviornment (this means tools as well
	as management support for time to do it right the first time) THEN
	we'll have a chance. I hold out little hope.

			Alfred