British companies have offices in India

Hi involved62, u r right! We get almost 1/10th what is paid in the U.S., and the present recession would have been more acute had this outsourcing not been there! That is because ur companies would not have made that much of profits, and therefore, they would not have managed to pay back the debts, and the stock markets would not be booming, and therefore, foreign monies would not be moving into ur country. As I mentioned under the 1st post, u all need to develop a market for the future. TVs are not changed everyday, nor washing machines. So there will come a time when the American market will be saturated in respect of such things. Without demand for such things, obviously, the industry will wind up and so will alied industries, and eventually the recessionary effect will take over. My logic tells me that when incomes exceeds 3.5 times of cost of living, then the problems start in any economy. I think in the US incomes reached ridiculously high levels. When incomes climb, even the services become expensive, effectively creating a gnawing gap between the lowest level, and services provider. That vaccum is being filled by Indians. The other alternative is to freeze/lower incomes, thereby create a cascading effect. Once that is done, cost of living will automatically come down because producer of the goods will have no choice other than lowering the prices of goods, as at lower income levels, people cannot afford to buy costlier goods. But these are my surmises. I have yet to locate the right link/book.

So America had businesses in India too then. Well that that the employees are paid one tenth of similar employees in the USA is very sad. I have a British accent and find taking to Indian people really easy. However some accents to difficult for one nationalities to understand. A fellow European in Australia asked me what "Good da' howya goin' mate" meant and I said good day, how are you my friend.

Thank you for sharing those thoughts, Maxima. I have not given much thought to how the labour market works. It reminded me too much of how I nearly flunked labour economics while I was at the university. But as a rejoinder to your comments, I think subcontracting services makes it cost-effective for companies and in a way, is mutually beneficial as outsourcing provides/creates employment. They might not be paid much, but since their developing economies have certain standards, companies cannot also distort the wage market too much by paying higher salaries than what the average worker earns.

I forgot to mention peacefulwmn, and rosepedal. :) I am more like patofgold or Dranz. :)

And kitty42. :) She is also soft hearted person like u. Actually, I started that discussion that u participated in the first time to c who is really soft in nature. :)

Yes, India used to be a colony of Britain and it gets on well with Britain. I am glad the employees think their pay is good. Having been to the USA three times in my life I know it is not very cheap to travel around it.

Thanks for telling me the likely salary is about RS10k which is about US$200 per month. It is shocking to hear that and worse to think that some workers get paid about half that amount. Unemployment can make people happy to work to low wages. It is interesting that China is being used too for outsourcing.

Yes, it probably costs less money for the companies and at least it does give employment to the some of the Indian people. Rich people in my home country can get a British nanny. Some decide to get an au pair. She might come from a country like Poland and she will be cheaper to employ.

It is terrible that Indian call center staff are paid so little. I can now see it happens in the Philippines as well. I am fortunate that I can understand many accents because I am a keen traveler and I have spoken with many different nationalities.