One of the reasons cited for sourcing engineering talent from China and India is that the U.S. is not graduating sufficient engineers, while the other two countries have a surplus. The numbers that have been most commonly cited are: U.S. graduates roughly 70,000 graduates a year while China and India together graduate approximately 950,000. That's 13 times more engineering graduates than in the U.S.

A recent study by the Duke University finds that while these absolute numbers may be correct, the U.S. is in no great danger of being overtaken by engineering talent from China and India. In fact, according to the report, China and India stand to suffer from a shortage of hireable talent.

The study surveyed companies in the U.S. on various parameters to determine the competition they faced when recruiting staff. On the parameter of acceptance rates, almost half the companies surveyed reported an acceptance rate of 60% or more and 21% reported acceptance rates of 80%–100%. These numbers are very good.

Moreover, 88% of companies surveyed reported that they don't offer signing bonuses to potential engineering staff. In a supply constrained competitive environment, signing bonuses are usually offered as incentive for people to join.

The report concludes, “We found no indication of shortage of engineers in the United States.”

On the other hand, China and India do graduate hundreds of thousands of engineers every year, but the quality of their education is in question, making a large majority of them “unhireable.”

In China only the top10 to 15 engineering schools graduate students that can be hired. Below these, the quality of education drops drastically. Sixty percent of university graduates in 2006 in China were expected not to find jobs that year, according to China's National Development and Reform Commission.

“In an effort to ‘fight' unemployment, some universities in China's Anhui province are refusing to grant diplomas until potential graduates show proof of employment,” says the Duke University study.

Moreover, at least in the case of China, the number of graduates that the country's ministry of education documents, there is no clear definition of the word “engineer” — it also includes a motor mechanic and technician.

While the number of engineering graduates in India is lower than in China, the quality of talent is a lesser issue. This is largely thanks to a many private engineering institutes in the country. “In 2004 India had 974 private engineering colleges as compared with only 291 public and government institutions,” says the report. “Private enterprise has been India's salvation.”