Freeman Spogli Institute for International Studies Stanford University


FSI Stanford News


April 2, 2004 - Shorenstein APARC In the News

From techie to truck driver in Silicon Valley. From tea broker to techie in Bangalore. The wave of jobs heading offshore causes wrenching loss--and produces enticing gains. Rafiq Dossani comments.

A Tale of Two Cities

Appeared in Forbes Magazine, April 12, 2004

Authors
Kerry A. Dolan - Writer at Forbes Magazine
Robyn Meredith - Writer at Forbes Magazine

In Silicon Valley 200,000 workers have lost their jobs since 2001, albeit only 6,000 of those jobs headed overseas, Stanford University researcher Rafiq Dossani estimates. But that number will grow, he says, as the offshoring pace accelerates for jobs in software programming and product development. Already 150,000 engineers hack away in Bangalore--20,000 more than in Silicon Valley, the Times of India reports. Cisco used only a few Infosys workers in Bangalore six years ago; now it uses almost 300 contract staff, plus 550 full-fledged employees in its own Bangalore office. In two years PeopleSoft's Bangalore offshore force has grown to 200 freelancers and 350 full-timers.