As, AOL began recruiting engineers in India last December in hopes of building an overseas presence where skilled, technical labor is cheaper than in the United States. AOL has already hired 12 engineers and will grow the office to about 50 over the next several months, a company spokesman said.
Bangalore, located in southern India, is considered one hot spot where many technology companies are building up their engineering and software development efforts. The city has witnessed, as more companies turn to its massive labor force to trim their own costs.
The outsourcing of skilled tech jobs overseas has become a controversial topic that has fostered business and. The economic effects of offshore outsourcing , with some studies saying such outsourcing could help businesses, while others claim that it could hurt the national economy.
Offshore outsourcing has already taken a human toll in tech-heavy areas in the United States, causing alarm, as.
Companies such as Hewlett-Packard, Oracle, Yahoo and Google have already opened, or plan to open, research offices in India.
AOL's entry into offshore labor last December came at an inopportune time. Weeks earlier, the company, many of whom worked at the former headquarters of the Internet service provider's Netscape Communications subsidiary.