http://online.wsj.com/article/SB121675006375274155.htmlIndia's Workforce Revolution
By VIVEK WADHWA
July 23, 2008
American businesses are increasingly moving their research and development operations to India. Companies like General Electric and Cisco now have their second-largest research centers in Bangalore. Debates rage in the U.S. about whether this will lead to greater prosperity or threaten the country's global economic leadership. But it's more productive to ask how India is training a workforce capable of handling such complex work.
The global engineering and entrepreneurship project team at Duke University traveled to India several times between September 2006 and May 2008 to meet the executives of dozens of multinational and domestic Indian companies to review their R&D projects and operations. What we found was astonishing: Despite its low science and engineering graduation rates, India is rapidly becoming a global hub for R&D, with a momentum and scale similar to what it accomplished in information technology services.
But how? Adjusting for different definitions of which degrees count as "engineering" degrees, India graduated roughly 140,000 engineers in 2004, about the same as the U.S. Additionally, it graduated 17,000 at the masters level and 900 Ph.D.s -- a small fraction of the U.S. numbers and not even enough to meet the growing staff requirements of Indian universities. Nor is the quality of its graduates consistent. India's Institutes for Technology, for instance, are equivalent to the MITs of the world, but many other, smaller institutions aren't even licensed.
So if engineering education is so critical to global competitiveness, how is India succeeding? It's picking up on the best practices know-how it effectively imports from foreign companies outsourcing to India, and perfecting those techniques. This is hardly novel -- it's exactly the path Japan followed in the 1970s and '80s...