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Page 32 Share Cite Suggested Citation: The Offshoring of Engineering: Facts, Unknowns, and Potential Implications. The National Academies Press. The six industrial the scale of activity in India is much greater than elsewhere. Table Offshoring at edc a 2 percent of U.
The commissioned authors were given a list of questions India today specializes in software services, such as to use as guidelines Box and were asked to submit ab- the development and maintenance of custom-application stracts, and then draft papers, in the run-up to the workshop.
From this base, multinational companies and suggestions for revisions, which the authors incorporated operating in India and Indian domestic firms have moved into the final papers.
Table provides a summary of an- into other areas, such as product software and embedded swers based on the commissioned papers mapped onto the software. The increasing technical sophistication of Indian questions in Box Summaries of the papers follow. In this summary, we contact with customers Dossani and Kenney, this volume.
After a period of time, Although offshoring of software development was the lead- they decided to set up Indian subsidiaries to perform more ing edge of the practice of engineering offshoring, it is still integral work.
At first, although costs were lower in India, not clear whether offshoring in other industries will follow it was more difficult to hire an equivalent team there than a similar pattern. Note that Moavenzadeh this volume gives an estimate ofengineers in the auto industry for the relevant NAICS codes.
For example, Broadcom, a software- growth Saxenian, Despite very high costs for skilled intensive semiconductor company, reports that its team in labor, Silicon Valley has remained a prime location for in- Bangalore is now as productive as its teams in San Jose and novative start-ups.
Irvine, with costs in India running about one-third of those In a workshop presentation, Alfred Spector, a consultant in the United States. In the first scenario, offshoring frees up U. The diaspora of U. In the second scenario, the rise of India Silicon Valley Saxenian, One example cited by and other offshoring destinations in certain sub-disciplines Dossani and Kenney is Netscaler, a company that turned to leads to a loss of U.
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Offshoring, the practice of outsourcing operations overseas, usually by companies from industrialized countries to less-developed countries, with the intention of reducing the cost of doing business.