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Bangalore, Outsourcing Capital of India
Air Date: 11/05/2010
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Bangalore, Outsourcing Capital of India


One place the president will not be going on this trip is India's high-tech and job-rich capital Bangalore. It's the place often blamed for the outsourcing that has killed so many American jobs. Our own Ian Williams shows us what the president will not be seeing during this particular trip.

IAN WILLIAMS reporting:

This is the city that gives President Obama sleepless nights.

Unidentified Woman #1: Let me know if you need any help.

I. WILLIAMS: Bangalore, India.

Unidentified Man #1: Does this make sense?

I. WILLIAMS: Servicing America...

Unidentified Man #2: Thanks for the information.

I. WILLIAMS: ...24/7, with everything from online tutors to personal assistants.

Unidentified Woman #2: You have an appointment with him today at 3:30.

I. WILLIAMS: India's outsourcing and IT capital is booming.

Unidentified Man #3: Happy! Happy! Happy!

I. WILLIAMS: A $60 billion industry employing four million people across India, 60 percent of its work for the US.

Mr. SRINIVAS ROWJEE (Tutorvista.com): People feel that we are taking jobs away from the US. I think it's unimaginable if you have a tutor working out of the US, the cost would be even maybe 10 or 12 times more than what we're providing.

I. WILLIAMS: Bangalore has now moved well beyond the outsourcing of back office or call center jobs. And it's not only low costs that now give Indian workers a competitive edge. America's technology giants are now sending top-notch work to highly skilled Indian workers. For GE, the parent of NBC Universal, this is the biggest technology center outside the US, employing more than 4,000 people.

Mr. RAJ RAGHAVAN (GE India Technology): We don't do things because it's cheap, we do it because the expertise available here.

Unidentified Man #4: The principle stress...

I. WILLIAMS: Technology colleges are expanding rapidly to meet a demand for software engineers who still cost only a fifth of their US counterparts.

Mr. SUNDER PRAKASHAM (Get Friday Personal Assistants): Jobs will go wherever there is talent, and America will have to find new ways to reinvent itself.

Mr. KENNY JONES: Radio Indigo 91.9, that's the...

I. WILLIAMS: Some Americans do see Bangalore as an opportunity, not a threat.

Mr. JONES: Every day 400 cars, new cars are added to the streets.

I. WILLIAMS: Riding the Bangalore boom, deejay Kenny Jones from Ohio hosts one of the city's most popular radio shows...

Mr. SEAN BLAGSVEDT: Are you looking for a job?

I. WILLIAMS: ...while Sean Blagsvedt quit Microsoft to set up a pioneering employment agency for blue-collar workers using text messaging.

Mr. BLAGSVEDT: There's a lot of hope to this city.

I. WILLIAMS: India's most dynamic city won't lose too much sleep over not seeing the president. They're much too busy for that. Ian Williams, NBC News, Bangalore.