India Outsources Jobs To U.S. In Video-Effects Field - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
12/2/2009
12:00 PM
Bob Evans
Bob Evans
Commentary
50%
50%

India Outsources Jobs To U.S. In Video-Effects Field

Based in Bangalore, India, a Tata subsidiary that specializes in video effects and animation will open a high-tech delivery center in Los Angeles next week to cater to Hollywood's appetite for video wizardry. Since this is clearly a case of outsourcing, I must ask the question: will the professional positions created at the new lab be "our jobs"?

Based in Bangalore, India, a Tata subsidiary that specializes in video effects and animation will open a high-tech delivery center in Los Angeles next week to cater to Hollywood's appetite for video wizardry. Since this is clearly a case of outsourcing, I must ask the question: will the professional positions created at the new lab be "our jobs"?The new video lab is being opened by Tata Elxsi, which wants to raise its profile and capabilities in Hollywood as it looks to create other such delivery centers in key markets around the world, according to two Economic Times of India articles:

The software design services firm aims to expand its presence in the US in line with its global growth strategy, which includes opening more studios in high-growth markets.

"We expect to get $300-$400 million in topline over the next three years, and we intend to keep doubling it every three years after that," Tata Elxsi Ltd.'s CEO and Managing Director, Madhukar Dev, told reporters [in Mumbai] today.

"We would open more centres in other parts of the world depending on the work-flow coming in from the US and from Europe," he added.

The lab will be operated by Tata Elxsi's Visual Computing Labs division, the second Economic Times article said:

With this new studio, VCL will be in a position to take on high-end VFX work. Studios in Hollywood normally outsource middle and low-end work to Indian firms. . . . Currently 85-90% of VCL's total revenues come from domestic work. "Going forward, we expect domestic and international revenues to be equal," said S Nagarajan, chief operating officer, VCL.

In terms of political philosophy, this could present quite a challenge to the many U.S. politicians--starting with President Obama--who have demonized outsourcing and made various promises about levying financial penalties on U.S.-based companies that send "our jobs" overseas.

But what exactly is their position when the reverse occurs-as is the case with Tata Elxsi-and companies based outside the U.S. create new jobs within this country? What should we do: tax them excessively for promoting the outsourcing bogeyman? Or tax them lightly to underscore our hypocrisy and the yawning gap between what we say and what we do?

I'd suggest we treat them exactly the same way as we treat other businesses in this country, and that on a macro scale we establish policies that encourage in every way possible companies like Tata Elxsi to determine that the U.S. is a good place for business and a good place for new jobs.

But we'll never get to that spot in today's wide-open global economy if we continue pushing this misguided concept of "our jobs," a quaint but terribly outdated position that will achieve nothing except limit this country's ability to maintain its status as a world leader in innovation, technology, and entrepreneurship.

For more perspectives on this vital subject of outsourcing and "our jobs," please check out the following:

IBM, Microsoft, And The Myth Of 'Our Jobs'

Oracle, Protectionism, And The Myth Of 'Our Jobs'

Global CIO: The Ugly And Dangerous Prejudice Against Outsourcing

Global CIO: Let's Put The Offshoring Bogeyman In Proper Perspective

Obama Protectionism Blasted By Microsoft's Ballmer And Symantec's Thompson

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll