Editorial

Cyber Slaves

People always look for greener pastures. In the distant past intellectuals from nomadic tribes like the Gauls moved to Rome looking for opportunities for livelihood - earning. In the near past, people from Europe and Asia migrated to North America and Australia - it was more like an export of physical capital and skilled labour.

After the dust of the second World War settled down, the world witnessed another spurt of human migration from Europe and certain Asian countries to the USA - however, this time, the migrants were skilled labour and hi-tech manpower. In pure economic terms, the movement induced a higher productivity of labour into a conducive North American environment, which resulted in higher world output of goods and services, advancement of frontiers of knowledge and promotion of better understanding among people. Fine! But what happened to the donor countries?

A developing country like India invests a huge amount to groom an engineer, a doctor or a scientist with an expectation that they would contribute to the national development and serve the people. It definitely hurts when such services are denied. In the same vein, the country loses when the brighter lot after their technical education, opt for management and administrative functions.

Looking from the other angle, a professional may not always get adequate opportunities for career advancement in developing countries - perforce s/he moves to work in a more challenging environment. There is also a silver lining. Non-resident population remits precious foreign exchange to their family back home, which perhaps, more than compensates the tax payers investments in their country of origin for their basic education. These days, the countries also derive benefit from the direct investments the non-residents make in industrial and other ventures. That is, they pay back their debts in other form.

In the cyber environment, the phenomena of this so-called "brain drain" gets further complicated. Earlier, good students after graduation, went to North America, Europe or Australia for higher education. After getting a Masters, they settled down with jobs or became entrepreneurs.

Subsequently, a new phase started in which Indian companies scout for left-over talents in India and recruit them at normal market price. The companies manage to get assignments - abroad and physically transport the prize catch to execute these. Reminiscent of cotton cultivation workers in Uncle Tom's Cabin, these hi-tech workers are paid only a small sum as overseas allowances (a fraction of the rate at which the assignments have been bagged). Such remuneration however, when multiplied by 43 would turn any Indian mind. A win-win situation for both, the company and the workers.

Came the cyber revolution. Develop the codes in India, and test on a remote computer, and there is no need for a physical presence. Once moored in India, they get paid at Indian standards while the employer earns in foreign exchange (take care to multiply by 43 once again!). The live robots may get few foreign trips - parents are happy!. The spouses, may not be so as an assignment under six months does not usually cover their travel and subsistence abroad. Win situation for Indian companies.

Came another wave. Why waste money on an Indian intermediary? Foreign companies or NRI groups have come in hordes for love of cheap intellectual resources to set up shop here individually or with local tie-ups. Lo! Indians are to be paid at Indian rates and they have little or no commitment to local companies. Win situation for the foreign companies or the expatriates!

The buck does not stop here! Understandably, entrepreneurs in India with right contacts are now being encouraged to arrange necessary infrastructure and more importantly, manpower and set up companies. Such companies are eventually transferred to behind-the-scene foreign investors. Win-win situation for both.

According to the World Competitiveness Yearbook 1998 by the Institute of Management Development, Switzerland, the cost per delivered and documented line of code is the highest for Switzerland ($27). Whereas, for India it is $5 only (compare US $18, Israel $11, Ireland $10 and Greece $6). So far as the quality is concerned, all countries are more or less at par. Defects per 1000 lines of released code is the least in the US (1.6), Israel (2.3), Switzerland (2.5) compared to India (2.6), Greece (2.8) and Norway (3.6).

Now comes the kick. While, a programmer for software development commands an average salary of $46,500 in the USA, $48,869 in Switzerland and $28,266 in the People's Republic of China, an Indian earns a pittance of $3,638. No wonder why the developed countries are keen to off-load software jobs to India!

These are all in the name of software exports that we boast of so loudly. Next time we come across the exalted pronouncements, we should not forget the sweat and grey matter which has not been decently paid for. Great opportunity for Rod Steiger to bag another Oscar should he make "No way to treat and Indian".

If we are to really prosper in the long run, we need to close all the "discount shops" in India. Let us refuse to be cyber slaves, face the mighty Alexander(s) as King Porus did, and demand equal treatment in the international market place.

- A. Lahiri