The Anonymous Bangalore Architect has written an interesting article on how outsourcing to India is at The beginning of the end. He has a lot of valid points of the current state of outsourcing in India, mainly too many people in the game, and the performance of those in the game has dropped. However, there are some hidden points that should not be forgotten in how it went like this, so I would just shortly mention out those here.
To no big surprise, the universities still only educate around 500 people per state (ok, maybe double where they have built new). But, due to the way the education system works in India, the number of educated students is not equal to the number of graduated. This is because private corporations can take a license from the universities to educate the students. In the end, the students write their exams and they are evaluated by university-grade people, but the process up to that, is as our anonymous friend writes, handled by possibly less skilled, and the teaching process is not monitored by the university at all (that is my experience anyway).
Because it is so hard to get into the "real" universities, these private coaching centers are mighty popular. Almost every smaller city above 50.000 people (small in India) has its own set of branches from recognized universities. Unfortunately, these are private ventures and since there is often competition between the coaching centers, each center is more interested in having good statistics to convince more students to come to their center, again, to earn more money. If their students would fail more than other centers, or even if they would get lower grade-average, then the students would go to the other centers.
As a consequence of this, most of the "teaching" in these private coaching centers is, to prepare the students for writing the correct answers at the exams, rather than giving them the basic foundations for understanding and working with IT.
This is naturally a very sad story. Even though many of those who are attracted by the high salaries and the possibilities of going abroad[1], my impression is, that they are still bright young people, who have a genuine interest in IT. Only, their fault is, they did not put enough pressure on their private coaching center to actually teach them anything, rather than just getting some good grades by memorizing a lot of exam questions.
Long story short, 1) If you are a HR person in India, then check their diplomas, people coming from coaching centers needs at least 1-2 years of internal training before they're useful, 2) If you are buying outsourcing, then demand the diplomas of the employees (or, ask them where they got their education), and then their experience level, and 3) If you are going to study IT, try hard for entrance at a real university or demand more of your coaching center.
I do not have any preference for outsourcing in India, my impression is that there is a lot of domestic software that needs to be coded there, so even if outsourcing comes to an end, jobs will still be available for the people with interest in IT.
- All want to go to USA even though its crappy, I keep telling them that, but nobody listen. A common thing to me in India is: Someone comes up and ask where I am from. I answer "Europe". Some time pass, then they ask again where I am from, this time I answer little more specific "Denmark in Europe, the capital is Copenhagen. Denmark is neighbour to Germany". Some more time pass, after which I hear the person who asked me, proudly telling his friend; "He is from USA, great!"