For the right kind of engineers

With outsourcing catching on, the impact of Indian techies on the world market needs to be studied, says VIVEK WADHWA

— Photo: AP

TRAINING MATTERS: Technical personnel need to know the latest developments in their field.

The impact of engineering outsourcing on the global economy is a discussion of keen interest. Consistent reporting of problematic engineering graduation data has been used to fuel fears that the U.S. is losing its technological edge. Typical articles have stated that in 2004 the U.S. graduated roughly 70,000 undergraduate engineers, while China graduated 600,000 and India 350,000. Our study has determined that the comparison is inaccurate, or tells only part of the story.

The commonly quoted numbers are based on reports issued by the Chinese Ministry of Education and the National Association of Software and Service Companies (NASSCOM) in India. However, the statistics have included not only four-year degrees, but also three-year degrees and diploma holders. These numbers have been compared against the annual production of accredited four-year engineering degrees in the U.S. Additionally, these numbers include not only engineers in traditional disciplines, but also IT specialists and technicians.

Here, we will present a clearer analysis of the number of engineering and engineering related degrees awarded annually by the U.S., India and China. We will define the term "engineer" and the various degree options that exist. We will then offer what we believe is a more accurate and balanced comparison between the numbers of engineering, computer science and information technology degrees awarded in the three countries.

Classification

The outsourcing debate has been complicated due to conflicting definitions of the engineering profession. Within academic and professional settings, an engineer is defined as a person capable of using scientific knowledge to solve real-world problems. However, this definition makes it difficult to count engineering populations. In the U.S., the following definitions have been used in various surveys and reports: an individual working in an engineering occupation; an individual's highest or most recent degree; anyone with an engineering degree or occupation.

Through our research, we have identified two main groups of engineering graduates: dynamic and transactional. Dynamic engineers are individuals capable of abstract thinking and high-level problem-solving using scientific knowledge. They thrive in teams, work well across international borders, have strong interpersonal skills, and are capable of translating technical engineering jargon into common diction. They lead innovation. The majority of dynamic engineers have a minimum of a four-year engineering degree from nationally accredited or highly regarded institutions.

Transactional engineers may possess engineering fundamentals, but not the experience or expertise to apply this knowledge to larger problems. They are typically responsible for rote and repetitive tasks. They often receive associate, technician or diploma awards rather than a bachelor's degree. These sub-baccalaureate degrees can be obtained in less than four years, but more than one. Most highly accredited universities in China, India and the U.S. stress the importance of a four-year education.

For instance, master's programmes within the U.S. will not admit students with three-year bachelor's degrees unless they have also completed a one-year post-graduate diploma from an AIU or an AICTE-approved institution. Sub-baccalaureate degrees normally are granted at lower-tier institutions that lack the research facilities, dedicated faculty and budgets of accredited universities. Data analysed.

In this study, we obtained data from the Ministry of Education in China, NASSCOM and the U.S. Department of Education's National Centre for Educational Statistics (NCES). NASSCOM's 2004 Strategic Report estimates that 215,000 engineering graduates were produced in 2004. Of this number, 112,000 received four-year bachelor's degrees, while the remaining 103,000 received three-year degrees.

According to this projection, 84.8 per cent of India's four-year engineering graduates received IT-related engineering degrees. Today, almost one-third of the globe's science and engineering researchers are employed by the U.S., 35 percent of science and engineering articles are published within the U.S. and it accounts for 40 per cent of the world's R&D expenditure.

Over the past two years, politicians, statisticians and policy makers have asked how much longer the U.S. can maintain its technological edge when other nations with greater populations are producing more and more scientists and engineers. Many have argued that the U.S. is actively fuelling this process by outsourcing science and engineering jobs overseas.

There is no answer to what the future holds. It is clear that the U.S. is not in the desperate state that is routinely portrayed. Outsourcing creates a clear threat to certain professions and it is likely that this trend will continue. It seems that the jobs of transactional engineers are easily outsourced and are routinely being taken by low paid engineers in countries such as India and China.

However, the outsourcing of high-level engineering and IT professions is another story. These jobs often require specialised dynamic engineers: individuals with strong interpersonal skills, technical knowledge and the ability to communicate across borders.

The majority of engineers in outsourced professions hold a four-year degree. One could argue that approximately half of China's and India's annual engineering and IT graduates are capable of competing in the global outsourcing environment. However, a recent McKinsey study argues that this estimate is far too generous and that only 10 per cent of Chinese and 25 per cent of Indian engineers can compete.

McKinsey attributed these figures to limited language proficiency, educational quality, cultural issues, job accessibility and the attractiveness of domestic non-outsourced jobs. So, the real threat to the United States' science and technology economy exists in a subset of the China/India engineering populations.

Foreign dynamic engineers trained by accredited universities with high language proficiencies and proximity to their country's industrial and commercial centres are the most likely to compete with U.S.-based engineers for offshore jobs, and they also will be central to innovation drives in their domestic economies.

(The author is Executive in Residence, Pratt School of Engineering, Duke University, Durham, North Carolina)