Do skilled Indian labor pose a threat to better paid middle class worker from west ??

Do skilled Indian labors pose a threat to the better paid middle class workers of the west?

The question has been haunting me since I read the article in WSJ. Admittedly for the same position and responsibilities in corporate, Indian workers are paid considerably less than the workers from west. No one has a definite answer of the “why”.
The article in WSJ describes how a call center 24x7 Customer Pvt Ltd. is feeling the heat to hire 3000 skilled employees out of a country with a more youthful population than US and China and with a total population size of 1.21 billion. Also, not long ago President Barack Obama showed concerns about competitive challenge posed to US by Indians.
The two completely contradictory facts pose a real threat to India, as a global power.

Today India has 1.5 million seats in engineering institutions. Over 100 million people can speak English well. Indian economy is booming at 8.75% annually. But disappointing is the fact that 75% graduates out of 1.5 million are unemployable by high growth global industries including IT and BPO. So many graduates lack the educational basics to which they are specialized. As a result global companies are diverting to hire from countries such as Philippines.

The education system is failed to deliver quality education as it is highly regulated by the government. The education has little or no connection with the outside world. The ‘taken for granted’ attitude towards education has been the root cause of failure of quality education.

The challenges are not limited to fresh graduates who are not competent enough for the jobs even after passing out of college but also extend to school going children who are labor force of next decade as half of Indian population is under the age of 25.

To become a real threat to better paid middle class India needs reforms in education which is the need of the hour. Government has to take a lead role to bridge this great divide. To an economy which is growing at 9%, education is the key to make it sustainable. Government must encourage corporate to actively associate with education system and such initiatives should be well backed through incentives in taxes as well.

Mission 10X, is such an initiative of Wipro to train lecturers of an engineering college in a town Malegaon near Pune, to enable them to engage with students in an effective way.

To make India shine, we need to break the resilience to convert it in to a country full of polished skilled work force, talent hub and maintaining the low cost advantage for business.

What other views do u have to share with us in making education system deliverable?