I do not disagree with your opinion however; security must be the highest priority. As you are well aware there are multiple levels of security. Obviously there is physical security and we have all read in our papers, including Mumbai, about physical attacks by terrorist groups. Mumbai is not the only terrorist activity which has occurred in India. Unfortunately, I doubt it will be the last. Of course, I am also concerned about security in the US as well. Of course security also involves the topics of identify theft, corporate espionage, propreitary information, confidentiality and especially for the US patient confidentiality.

Out sourcing is one component of our emerging global economy. What happens globally is now impacting us all more quickly and in a much more profound way than in the past. In the US many fear socialism however; the socialism of India has escalated the development of India. It is also controlling and retaining the ownership of the Indian economy. Much of what the India government is doing, is protecting India from the G4 nations.

I really hope that globally the “little guys” can connect and help each other prospers. Too often the phrase “The rich get richer while the poor get poorer” seems to have held true in the past.

the bigger issue today and it is a fact as well the demographics and age profile of the western economies are not sustainable to drive the technology of the future. We need to admit it. Looking at India in particular the country is probably the youngest in the world and probably about to reap demographic dividends because of the young workforce. With the advent of internet and the networks today the innovation quotient is moving towards Asia in particular and the emerging economies are in particular about to steal the lunch of the western economies.

Instead of taking a negative stand on the outsourcing and it will be good for the western companies more particularly the technology leaders to take a proactive approach and innovate across the global network and make products which are innovative, disruptive, leading edge and at significantly low cost. So be it if the work is done from India, china or russia. Like the Chinese who manufacture for the western companies these countries may deliver and develop software for the western world with greater efficiency and at a significant speed.

The reality is that India’s out sourcing is run by the highest classes of India. They control the politics necessary to build the infrastructure, the education, and the sales. The laws of India prevent any foreign country from coming in and “owning” an out sourcing company. In all cases these companies, even an IBM, must be partnered with an Indian entity. The wages paid to Indian developers is not comparable to their U.S., Canadian, or European counter parts. The difference goes to those running things.

It would make sense for small U.S. companies who cannot afford the potentially high expense of software development to link up with small software development companies in India. In this case the U.S. company would get a real benefit and the U.S. company could pay the Indian developers a competitve wage. Unfortunately this is not what is going on. The companies who can traditionally support the expense of software development in the U.S., Canada and Europe have bought the expense / expertise of the Indian upper class. The consequence is less demand and lower wages for U.S., Canadian, and European developers. Young Americans see this trend and are moving away from this career path. In the future the argument for “lack of resources” will become a reality.

The country of India and the people are amazing and beautiful however; India is politically unstable. As the out sourcing industry attempts to grow the infrastructure projects and conflicting with the housing and sanitation needs of the India society proper. The gap between the out sourcing sales / ownership class versus the out sourcing work force is only going to bring more tension to the political situation in India. If I were Osama Bin Laden I would not attack targets in the U.S.. I would attack targets in India who are supporting U.S. businesses. It is much easier to get such forces through Pakistan to India or from Malaysia to India. The effects would be absolutely devasting to our economy.

The goal of the 9/11 attack on the twin towers was economic. It was very successful. Far more succesful than anyone cares to admit. While I hope that ultimately out sourcing helps the developers in India and other nations of the world, I think it is a highly risky enterprise. I think it is a house built of cards. A strong political wind will destroy it.