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Outsourcing CEO Says American Grads Are "Unemployable"

Outsourcing CEO Says American Grads Are "Unemployable"

Photo courtesy flickr user "World Economic Forum" under a Creative Commons 2.0 attribution license.

Jason Mick/DailyTech

June 22, 2009

The CEO of a major Indian corporation sounds off on what he sees as educational inadequacies

HCL Technologies is one of India's most powerful and respected tech firms.  The company scored a massive $170M USD outsourcing contract from Microsoft last year.  Microsoft CEO Steve Ballmer lavished them with praise, stating, "That extra mile walk by the team (at HCL) has increased our mutual trust and has taken our relationship to newer heights. "

Now HCL's CEO Vineet Nayar has gone on record with some controversial remarks about the quality of American technology college graduates.  Tired of hearing stereotypes about Indian tech grads, Mr. Nayar, speaking before an audience of business partners in New York City, blasted American tech grads as "unemployable". 

He elaborated that he views American tech grads as inferior to those from India, China, and Brazil as the Americans only want to "get rich" and dream up "the next big thing".  He says students from countries like India, China, and Brazil are more willing to put the effort into "boring" details of tech process and methodology, such as ITIL, Six Sigma, etc.

Mr. Nayar also complains about the cost of training Americans.  He says that most Americans are simply "too expensive" to train.  He compares this to Indians, which he says are highly trained, thanks to exhaustive vocational training programs which are used to supplement traditional college education.

Many have taken offense at Mr. Nayar's rhetoric.  Information Week's Robert Preston comments, "Imagine if the CEO of a U.S.-based tech company marched into Mumbai seeking a bigger share of the country's multibillion-dollar market and declared the locals to be unemployable and untrainable. A culture of innovation isn't inconsistent with one that values attention to detail."

Ultimately, the ill-considered speech may be more the result of reverse-stereotyping, and less out of true malice.  Nonetheless, it's indicative of the tensions between U.S. and India over outsourcing and prejudices that still unfortunately exist in the international tech community.

© 2009, DailyTech_


+3
  • Lespaul_max50

    LesPaul

    about 1 month ago

    14 comments

    Oh! I always wondered what was the cause of the quality of MS products, and the reason why they are performing like this, thank you for the clarification Vinnie. "It's Made in India!"

    I do not think that graduates overseas are better prepared, they have a better attitude as this financial genius says, they have the attitude that "ring$" to his CEO ear$, meaning:
    "I'm willing to do anything for 95 cents/hour, (or less)"
    Yeah! that's the attitude kid, that's the spirit..! Go for the extra mile without any gas!!

    Why should a true American company have anything to do with a guy who consider ourselves useless?

    Maybe because despite the fact that we are unemployable and therefore, unemployed he can make 170Million "USD" (not rupees) per contract from and "american" company?

    Barack my friend, shouldn't we have a legislation somewhere to stop this? before we all end in jobs that cannot be outsourced, like janitor, plumber, warder with our unemployable American degrees? What is the point of creating thousands of jobs and then send them abroad only to increase the ROI of a greedy corporation? (and decrease quality)
    If this genius really think this, he should stop sending his kids (like silk91 below) for training over here.
    Vinnie and friends, stay at home and please leave your archaic royalty there it doesn't apply here.

  • Avt_allen905786_large_max50

    Shawn263

    4 months ago

    76 comments

    Its always a money issue, I remember saying this from a previous post like this one. . .its go come down to it, if your for IT then be for it, not the money. You have MICROSOFT!!!, making deals across seas??? This is the same company im trying to get my certification from!! Come on! Are you serious??? But the fact that this dude point out that american workers are "Umemployable" is wrong, period.

    This country as a whole is in a bad recession and not everyone thinks about money, I really enjoyed my job for the WORK of it, and the check was ok...ill admit that, but its not everything, because you can have all the money in the world and still be doing some crazy. We are "unemployable" because there ARE NO JOBS HERE, not even at a #$#@! Mcdonalds and you have the nerve to come out your mouth like that??? Is that whats hot???

    Nah, thats foulball and im very dissapointed in Microsoft, Cisco, and the other tech industries for feeding into this. Maybe this tax proposal will help, maybe not, I don't know. But I do know its a problem when I can't feed my own at night, because no work is AVAILABLE.

    Shoot, I may have to do IT work in my spare time and switch careers...I'll never thought Ill say this, but I just may have to put on that purple robe and poke arms for a while.

    It'll pay the bills...

  • _bu_4rtq_2k___kgrhgookkiejllmvgl3bknq_3ku4q___1_max50

    twctc889

    4 months ago

    48 comments

    THAT DUDE SUCKS,I GUESS THAT IS HIS VIEWPOINT ON AMERICANS.

  • Photo_user_blank_big

    MurphysLaww

    4 months ago

    12 comments

    Well, Americans have a history of utilizing labor from other countries to perform the less innovative, back breaking tasks in other fields, so why not programming? Ultimately, that priceless Indian ego will resulting in a "righting of the boat" where Indian workers expect more $$$ for their work and the cheap labor will be found elsewhere. Economics in Globalization is a #$%^#$, but what goes around, ALWAYS comes around. LOL.

  • Mike_max50

    bigmike2238

    4 months ago

    8 comments

    I would have to agree with what has been said. The fact that American companies are choosing your workers over qualified employees in the states has little to do with your skill set and more to do with fact that you are willing to work for much less.

  • Photo_user_blank_big

    Matthew_Booker

    4 months ago

    10 comments

    Relating to the comments that have already been posted, I do not believe it is fair for Mr Nayar to have made these remarks. With respect to race and gender, we are no more unemployable in the industry than those from, say, Nigeria, Africa, the Middle East or, in the case of this article, people from India.

    Mr Nayar's remarks in the article are similar to me saying I won't hire this person because they have blonde hair, or this person won't be offered employment because they are female. People are not traditionally unemployable in a particular market simply because of where they got their IT education, whether it be Harvard, Yale, NYU or Fort Bragg. What makes them unemployable is when they either don't have the skills to back up their education or when they have a known bad work history or poor work ethic.

    In a "just" society, would anyone really give a tinker's damn about what country a person was educated in? NO. Would they care about the color of a person's skin or their gender? again, NO.

    People like Silk91 and his idiot boss make me want to vomit when they say things like this. Or, in the immortal words of George Carlin, "Well, maybe not vomit. Makes me want to engage in an involuntary personal protein spill."

  • Photo_user_blank_big

    AmericaWorks

    4 months ago

    2 comments

    You click on silk91's profile and he works for HCL... so this just shows HCL's prejudice thought is through out his company, and probibly India's as a whole... So, mr silk91 how bout you and I have a tech challenge? then you might just see how damned idiotic you are... Never under estimate americans... We created the largest tech firms and we still understand the ins and outs of IT far more than india, why American firms outsource help desk and operations to india, but are hesitant to do more, but the fact are you can't even do those functions as our counterparts could... your just cheap labor - that's it ...

  • Passport_size_max50

    silk91

    5 months ago

    4 comments

    Perhaps this is not the right time to make such a statement.

    Otherwise he is true.

  • Logosm_max50

    Justen

    5 months ago

    212 comments

    @USITGuru: thanks for your input, it's always valuable to hear from someone who's been on the other side and has a personal understanding of the system. Regardless of who is working on it, the most wonderful thing about IT is that it facilitates this kind of communication. Something we can all be proud to be a part of :D

    @malteseowner: fundamentalist Christians in the U.S. engage in all kinds of crazy antics - and they *are* laughed at for it ;) Check out any of dozens of hilarous videos of charismatic fundamentalists falling to the floor seizing and babbling under the claim that's going to bring them prosperity or happiness in their personal lives. Don't think that one crazy religion is objectively less crazy than some other on account of your familiarity with it.

  • Photo_user_blank_big

    TechDiva415

    5 months ago

    2 comments

    Being in IT I've worked w/ lots of Indians, they go in HUGE circles, so concerned they are about stepping on everyone else to be viewed as the top gun that they end up putting out CRAP! Just when I would think they had top qualifications in certain areas I ended finding out the hard way they lacked in basic common sense. Always belittling others, back stabbing, comparing one w/ the next, instead of buiding up a great team effort and supporting one another for the overall project in a positive way they were always negative. I found there to be NO professionalism AT ALL! So Mr. Nayar's comment doesn't suprise me at all. Typical Indian ego.

  • Photo_user_blank_big

    Account Removed

    5 months ago

    Well having that type of outsourcing isn't all it's cracked up to be, at least for IT call centers. I've already had several clashes with "wonderful" Indian friends whom were answering for Comcast's tech support. They offered little help if any and I ended up solving the porblem my self after all they're scripted attempts. Many of them whom are outsourcing recipients obviously like the boring repetitive slave like jobs. But who am I to judge. Maybe the sombi-like careers are the wave of the future. This is the same as some textiles companies who outsourced to other countries where the workers hammered for many hours at approximately $1 or $5 a day. If you want to see what their jobs look like, watch the movie "Transformers".

  • Photo_user_blank_big

    basildave

    5 months ago

    4 comments

    Excellent analysis USITGuru.... I would never say that someone is inferior in any field due to their race or nationality. However, cultural differences can produce differing attitudes regarding work ethic. What I'm worried about is that American students (and those Americans can be of any race or ethnicity) are no longer hungry in comparison to their foreign counterparts. I just finished a masters program in computer information systems and so many of the students didn't have the basic math skills needed it was scary yet the highest level of math we used was probability and statistics. So many people are in college right now that having a bachelors degree is practically a joke (a joke that costs you about $50k on average). So what is the point to getting that degree if it buys you nothing?

  • Photo_user_blank_big

    malteseowner

    5 months ago

    4 comments

    If we in America "married" two animals to bring on rainfall I believe we would be laughed at. And we Americans are unemployable? If he Indians have such practices such as this Wow! This is one for the Dave Letterman Show. My son worked at Dow Jones and his division was outsourced to HCL last fall.....so he is one of the unemployed now. After being employed for many years, he had to move back home and give up many things. Cannot find a job yet in this economy. Now to hear Microsoft is using HCL!!! My next computer will be a MAC for sure.

  • Photo_user_blank_big

    malteseowner

    5 months ago

    4 comments

    this is from the Daily times of Pakistan: Frogs ‘married’ in India to bring on monsoon

    MUMBAI: Two frogs have been “married” in a ceremony in the western Indian state of Maharashtra to usher in the delayed monsoon rains, a report said on Wednesday.

    Residents in a suburb of Nagpur, 860 kilometres east of the state capital Mumbai, looked on as the groom, Raja, and bride, Rani, were joined in union in a solemn ritual at the weekend, the Times of India said. Tradition dictates that if frogs are married off with full Vedic or Hindu rituals, the rain god is pleased and the heavens will open within days. Similar ceremonies have been held across the country. Indians have been watching the skies anxiously after the monsoon failed to appear two weeks ago, prompting concerns about the impact on agriculture and water supplies as lakes run dry after a long, hot summer. afp

  • Jaygodse_max50

    jgodse

    5 months ago

    2 comments

    Mr. Nayar may find Americans unemployable for his business needs, but lots of other businesses find them quite employable. Mr. Nayar is making generalizations with a relatively small sample space. This kind of approach is usually imprudent because it discounts other equally legitimate and prosperous business models.

    Companies like HCL make comparatively more revenues from taking on relatively well-defined work to serve the well-defined markets of their clients. In such situations, disciplined development is more of an asset than innovation. Companies such as Microsoft make comparatively more revenues from actually defining products and markets, so for them, innovation is relatively more important than disciplined development.

    In the end, stereotypes of Indians or Americans exist because there is an element of truth to them. Americans are stereotypically more talented in innovation and less in disciplined development. Indians are stereotypically more talented in disciplined development and less in innovation. However, numerous counter-examples can be found to show that Americans are not that different from Indians. Furthermore, if the Indian companies defined products and markets more while American companies were given the development work, the stereotypes would probably shift.

    Mr. Nayar may feel entitled to his points of view because his way of doing business has coincided with tremendous success. However his business success may just be coincidental with or correlate with his methods and opinions. However, it takes a lot more data and logic to be able to show a causal relationship between the success of his business model to the methods he uses. And in this, Mr. Nayar is a lot like many American executives and boards of public companies which attribute business success to being caused by the methods of the executives, when it may be correlation or coincidence at best.

    Is Mr. Nayar a successful businessman? Absolutely! Can we attribute his success to his opinions and methods? Maybe...maybe not.

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