Posted on 09/13/2005 by OffshoreOutsourcingWorldStaff
Viewed: 715 times
Sunday February 23, 2003 - Offshore Outsourcing World Staff
REGARDING OUTSOURCING: This fascination is partly based on intellectual curiosity, and partly based on my career. I own a software development center in Vancouver Canada and run a project management office in the Bay area.
A big emphasis with my company is to show clients how to save money and get quality results by moving work offsite (locations vary, but usually to Vancouver or an India based development center).
This is, of course a conflict. A few years ago, I was gleefully enjoying my comfortable salary working as a software engineer in New York. Now, my actions are helping to erode the salaries of my old coworkers and friends.
However, it is an inevitable force. The steel industry is a good example. It employed many across the country for years. However, eventually, smart CEOs found ways to get their steel more cheaply. This was the result of improved technology used in other locations, along with the a lower cost of labor and other infrastructure.
For a while, the US government tried to counteract this shift in the steel market by placing steep tariffs and quotas on imported steel. This benefited US steel producers for a short time.
But what was the result of this governmental interference? According to Robert Reich in the book The Work of Nations, it increased the cost of goods that used steel as a raw material. This cost consumers "... about $1 billion a year more than they would have paid for cars had the American market been open.".
From my current perspective, I can see that attempts to counteract the global forces of capitalism within the US will only serve to reduce our competitiveness. My suggestion would be, rather than to fight this gigantic profit inspired force, we should educate children how to effectively survive and thrive in a marketplace that plays by these rules.
I feel that the educational process leaves many unprepared for the realities of the world. Why not include greater education on economics? Why not include readings from Marx's Capital, or other, more moderns works that describe how capitalism really does work?
Changes are approaching from the future more quickly than ever. The rate of technological progress is faster than ever before. If our country does not learn how to play the game better, then our strong standing in the world economy will be challenged.
POST A COMMENTRedStapler(09/13/2005)
Hey OOWS- Do you honestly think it is a smart idea to shift sectors of our economy to our fellow countries, instead of investing in our own? I don't think you'd mow your neighbors lawn, fill their fridge with groceries, pay for their medical bills, and buy them a car before you provided for your own household...would you? You know the old saying "keep it simple stupid", the logic and consequence of outsourcing isn't that complex!
brother from another mother(09/13/2005)
I haven't been outsourced and don't work in an industry that has been outsourced---YET. But it sure seems like we're putting the people of this country inside a box, not punching airholes in the top, wrapping it up in paper and handing it to India, China, etc. for christmas. Does India and China know what's in the box? You bet your sweet a** they do and they are eagerly counting the days left till Xmas.
SouthernProgrammer(09/14/2005)
How come CEO's are never outsourced?
Spencer(09/14/2005)
Because they don't do anything. Hence there's nothing to outsource! Hahahahahahaaa
Proud American (09/13/2005)
Come on, buddy... I guess you're entitled to your opinion based on your experience and I'm entitled to mine based on my experience. I've found outsourcing to be the most stressful thing I've gone through. I think we, as Americans should be very concerned that we are moving technological intelligence offshore. That doesn't promote any fresh talent and we're leaving our possibility for technical advancement in the hands of third world countries. Speaking of Marx...another interesting post on this site. http://jobschmob.com/showArticle.cgi?id=9&type=3
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