India’s strategy of earning foreign exchange by marketing the services of its computer-literate graduates as contract programmers for US systems integrators and recruitment agencies is beginning to pay off – but there is a dark cloud on the horizon with the US Commerce Department’s move against Singapore software (CI No 1,340). India now has the world’s third largest pool of programmers, and they are widely agreed to be well trained as well as affordable in comparison with Western rates, and demand for programmers in the developed world is growing 25% annually compared with 3% annual increase in supply. The imbalance between domestic supply of software and demand is very high with one US software house estimating a two year lag in software production, contributing to the push to find overseas programmers. India has a technical workforce of 250,000 people and since 1984 the Indian government has attempted to stimulate the growth of its high technology sector and software exports by reducing customs duties on hardware and software, increasing low-cost loans to developers, providing foreign exchange to finance imports and extending insurance cover to export projects. Since 1985 its exports have risen 150% to $75m last year, according to a World Bank report. The number of Indian software companies grew from to 600 in 1989 120 in 1984, and almost half of these are involved in contract programming with the majority involved with US companies, according to Computer Systems News. But US regulations may hinder the future of export of software and services in many third world countries since the US Commerce Department, under the unfair trade rules, decided that products developed with government finance may be liable for import duties of 15.25%, and it’s a short step from this to allegations that Indian programmers are taking the bread out of (non-existent) US programmers’ mouths, and slapping duty on work exported to India for reimport. Other obstacles for third world companies include the difficulty in obtaining up-front, long-term financing and few companies have figured out how to market their services. An estimated $11,600m was spent by the US in 1989 on contract programming services, up from $10,700m in 1988. Estimated spending for this year will be $12,600m. Few US companies are willing to comment on hiring overseas contract programmers, citing the extreme sensitivity of the subject, but the Burroughs side of Unisys Corp of Blue Bell in Pensylvania formed a Tata-Burroughs joint venture 12 years ago with the giant Tata conglomerate in Bombay, and the successor Tata Unisys Ltd company still supplements Unisys’ programming resources. Tata Unisys supports, designs and develops software for customers in the 47 countries where Unisys does business and employs professionals with experience not only on Unisys systems but IBM, DEC, Hewlett and Prime Computer environments. Some programming work is done on-site but carting programmers around the world is expensive, and the majority is done at the company’s Bombay facilities. Time difference and satellite communications enables vitually 24 hour programming. Tata Unisys has a Software Consultancy division specialising in designing databases, data communications and networks, computer-aided manufacture and systems conversion and it is growing at between 30% and 35% a year. Approximately half of its work is for the US though it has completed 1,000 projects in 50 countries worldwide and $20m in sales from foreign projects is channeled back to India. Mastech Systems Corp of Pittsburgh, not shy about its links with Asia, specialises in providing programmers for systems integration projects employing 200 people in the US, and doubling its staff half yearly, has 500 additional programmers available in India and ready to be deployed at two weeks’ notice. Employing available foreign talent enables bridging of the gap between supply and demand, fewer people in the US are entering the far from glamorous world of programming whereas in India programmers are accorded the same status as are the legal
, business and medical professions.
