Infosys - A Chop Shop?

Infosys - A Chop Shop - Senator Schumer

Criticising companies outsourcing highly-paid American jobs, a US Senator has described Indian IT major Infosys as a "chop shop", a place where stolen cars are dismantled and parts sold separately.

The comments were made by Democrat Senator of New York Charles E Schumer during discussions on the Border Security Bill, a USD 600-million emergency package aimed at strengthening security along the porous Mexican border.

"The emergency border funds will be paid for by assessing fees on foreign companies known as chop shops that outsource good, high-paying American technology jobs to lower wage, temporary immigrant workers from other countries.

"These are companies such as Infosys," Schumer said on the Senate floor on Thursday.

My Comments:

Infosys and other Indian Software Company should try to do at least one or two products, to prove that they also have real capability in developing software. I am always surprised to see them keep on multiplying their revenues Year-over-year even when the Global Economy itself
is under performing, even without holding any IP and real competitive edge.

My thoughts is that they are leveraging the gap between the cost of essential life services in India vs the same in US (indirectly through the currency value difference between Indian Rupee and the US Dollar). But this Currency Value difference itself is the ugly offspring of US making its Paper currency the world's Currency (giving a monopoly player status for US). The US is now tasting its own medicine it had been administrating to the entire world.

What is happening is that non-tech, non-financial service providers (read as middle class people) value has eroded under globalization across the globe. This exploitation cannot go on forever and US non-tech, non-finance service providers are now fighting back. Their Indian Counterparts to would start fighting back soon.