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Food for thought - Can this happen in IT based Indian Cities?

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Food for thought - Can this happen in IT based Indian Cities?

Last updated: October 21 2009
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  • Food for thought - Can this happen in IT based Indian Cities?

    This is a case study of Detroit, MI, USA. It is a major auto manufacturing center in USA. With combination of economic downturn and manufacturing facilities moving to cheap offshore locations, this city is going through the worst phase in it's history.
    1. Unemployment rate is at 22%, three times of the national average.
    http://www.npr.org/templates/story/s...ryId=102326093

    2. You can buy a house from $50 ( Rs 2300) if you can afford to pay the property taxes!
    http://www.realtor.com/realestateand...troit_MI?sby=1

    For the Indian cities booming only based on IT, at some point similar scenario is possible.
    Facts:
    1. IT jobs are easier to move than manufacturing. As cost is increasing in Tier 1 and Tier 2 cities, IT companies can move to Tier 3 cities or the cheaper countries like Mexico, Bangladesh. In fact Indian IT companies have already started opening centers in the countries cheaper than India.
    2. US Tightening visa rules. Few bills being discussed in senate. Any change in the political situation/ laws can adversely impact.
    3. For manufacturing it took years to happen. But for IT, situation can change in months.

    What are your thoughts? Can this happen? When? What should we do to better position us and protect in this scenario?
Have any questions or thoughts about this?
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