Yea it will frock the IT job market locally and it actually has already done it. Which is why I say that we will not return to 97 prices for houses, we will drop waaaaaay beyond that. There were atleast 2-3 million more IT jobs in CA in 97 than there are now. And that is conservative. Remember these are high paid jobs – easily pushing 75K.
However as the IT market here tanks, my colleagues (I am an Injun IT engineer too BTW) as promptly dumping their upside down house back to the bank and walking with their credit dinged … but who cares, they are going to their new life In india where credit history here has no reach.
However 2-3 things are happening.
1. Companies in India dont pay more for IT and less for other engineers. because the govt does not do that, and many IT firms are all arms of other industrial giants and they pay ~ the same for a grade 2 engineer be it mechanical or civil or software. So rampant inflation all around.
2. They can work in India for $20 an hour because there have been no lay off’s no firings no nothing. A job was yours for life till you decide and move on. With american style lay off’s comming and it has begun to hit there too, people are going to stop working for peanuts.
3. We would never consider moving houses. In my life (20 years) in India I have maybe seen 2-3 people move from city to city after they have had kids etc. they move all the time but usually its 2-3 streets away or one suburb to the other. Face it, moving costs $$, it resets your cost of living (like losing your rent control house) and it creates a sense of resentment in people so they want more $$$.
4. Rupee (indian currency) has gained vs USD ~20% in the last 5 years, and 10% in the last 1 year.
5. Soon it will not make economic sense any more to out source. The good IT engineers are about to start costing the same in US or in India cos they are looking at europe as a viable option too.
Outsourcing is about to die a slow and painful death right on the heels of the house bubble. USD getting wortless, houses costing less and less, rents dropping and eventually wage deflation is about to occour in the US and will make outsourcing to India obsolete.
Cool.
Cow_tipping.
