If you are a CEO of a multinational - it's your duty to outsource

[sasguru]

The middle classes may well increase - that wasn't my point. What is the salary of an IT developer in India compared to here? Is he part of this growing middle class? Probably yes. By western standards his salary is still low. He will not be buying the high price goods being outsourced to India and China for a very long time.

Wrong he's buying it right now - look at house prices in Mumbai, witness the rash of new car models being released specifically for the Indian market.That's your 2 big-ticket items right there.
And yes he's also buying your plasma TVs etc - they're ridiculously cheap after all, because his less educated cousin makes them down the road.
Absolute salary is irrelevant unless Bob wants to travel - if he earns 1000 dollars a month and can live like a king for 500, he's better off than most IT types here

When India and China become too expensive there are plenty of other poor nations to outsource to.

Actually no. Africa looks like it will be the only really poor region in 20 years.

The reason companies outsource to India and China is to reduce costs and boost proficts. Cost to the business is the only driving factor. If they can get some sales from the Indian sub continent then all well and good, but only a fool would say that companies outsource for some moral reducing poverty type crusade!

I would be the last one to claim any multi-nationals are on a moral crusade.
But you're completely wrong. Its cold hard cash thats driving them to create markets as well as exploit them. Killing 2 birds with one stone as it were.

I am constantly surprised by the naivete of some CUK posters.

[sasguru]

Plus as I'm sure most of us realise, real wages for IT types are falling here.

[TimberWolf]

Africa looks like it will be the only really poor region in 20 years.

Maybe, but I don't think Earth could sustain its entire current population living at first world levels of affluence for very long. If wealth is to be shared more equally, something or somewhere has to give eventually. Either less people or less well off people. Even the current situation isn't sustainable.

[sasguru]

Maybe, but I don't think Earth could sustain its entire current population living at first world levels of affluence for very long. If wealth is to be shared more equally, something or somewhere has to give eventually. Either less people or less well off people. Even the current situation isn't sustainable.

I agree. That's a whole different kettle of fish though - what that tells us is that capitalism in its current form (based on consumption) is unsustainable.

[the_duderama]

Absolute salary is irrelevant unless Bob wants to travel - if he earns 1000 dollars a month and can live like a king for 500, he's better off than most IT types here.

So we should say bogoff to the UK and the nasty weather, horrible people, bad food and move to India? Awesome!

How does one apply for a working visa to India? 10 rupees say it's much harder emigrating from here to there than the other way round!

[sasguru]

So we should say bogoff to the UK and the nasty weather, horrible people, bad food and move to India? Awesome!

How does one apply for a working visa to India? 10 rupees say it's much harder emigrating from here to there than the other way round!

You're probably right.
You could always try to undercut Bob though

[TinTrump]

How does one apply for a working visa to India? 10 rupees say it's much harder emigrating from here to there than the other way round!

I've just been installing a factory system there (Chennai). That city's not my cup of tea. Sweet FA to do at night.