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The Dot Com Bubble
Risha Thimmancherla
Created on May 14, 2021
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Transcript
Indian immigration to the US: The Dot Com Bubble
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The Dot Com Boom
The Dot Com Boom was a rapid rise in the value and number of internet-based companies in the US in the 1990s.This led to the subsequesnt crash of 2000, where many internet companies went bankrupt and bust.
Causes of the Boom
Indian Immigrants' Journey to the US
The Y2K Crisis
During the Y2K crisis - which occured around the same time as the dot com boom - companies attempted to reprogram their systems from recording year as a 2-digit number to a 4-digit number. This would prevent systems from crashing at the turn of the century³.
Effects on the US
Effects on India
Indian Immigrants' Journey to the US
Indian Immigrants' Journey to the US
For US Companies...
US companies suddenly needed a large number of prorammers to remediate the Y2K problem. Because it was reltiveley mundane work, companies outsourced these jobs to Indian programmers to save money, rather than hire American workers who would have to paid more.
Indian Immigrants' Journey to the US
Indian Immigrants' Journey to the US
For Indian Companies...
The increase in demand for jobs caused a boom in IT services in India, which was intrumental in making the country an IT hotspot over the next few years.
Indian Immigrants' Journey to the US
US companies would outsource labor from indian outsourcing companies (such as TCS, the company that hired my father). Many of these skilled laborers were required to move the the US for work. The Dot com boom simply accelerated this trend. The boom “was conducive ... to skilled labour... [due to the] environment of growth at that time ... It was now extremeley easy for Indian immigrants to come to the US during this time on work visas."¹
What was appealing about the US?
The 2000 Stock Market Crash
The bubble rose from 1995 to 2000, but eventually investing in companies that would not turn a profit for many years caused capital to dry up. The economy entered a bear market - when a market experiences prolonged price declines among widespread pessimism and negative investor sentiment. Many companies went bankrupt and the market crashed, causing a widespread panic in the 2000 stock market crash².
Effects on Indian immigrants
Aftermath
Even after the stock market crash, the outsourcing to Indian companies never stopped. In fact, the outsourcing buisness boomed more than ever², which remained benefiacial for indian companies as well as workers who wanted to move to the US.¹
The views of Indian immigrants
Works Cited
- Thimmancherla, Deepak. Personal interview. 10 May 2021.
- The Purdue OWL Family of Sites. The Writing Lab and OWL at Purdue and Purdue U, 2008, owl.english.purdue.edu/owl. Accessed 23 Apr. 2008
- Paul, Soum. "BOOK EXCERPT: How the dot-com bubble turned out to be a boon for Indian IT companies." moneycontrol.com, 28 August, 2017, https://www.moneycontrol.com/news/business/startup/book-excerpt-how-the-dot-com-bubble-turned-out-to-be-a-boon-for-indian-it-companies-2370777.html.