Outsourcing: The Rush Overseas

The Charlotte Observer ^ | 12/14/03 | Stella Hopkins & Sarah Jane Tribble

[Huber]

Here's another outsourcing/handwringing story from the left-wing media. Go to town guys!

[Huber]

PING

[A. Pole]

• Wages up to 90 percent lower for educated, English-speaking professionals.

• Savings of at least 20 percent, often more, on total project costs.

So 20% tarrif will preserve 90% of income for the American professionals. Looks like a good deal.

• Round-the-clock production due to time-zone differences.

This is where it will be worth to pay 20% tarrif. Fair market at work.

[Reeses]

"Workers lose earnings while out of work and, on average, don't get jobs that pay as well as the jobs they're displaced from." Erica Groshen, an economist with the Federal Reserve Bank of New York.

Governments lose substantial tax revenue while benefit demand goes up. Why is this never mentioned? And because of progressive tax rates, when the workers find new work making 1/3rd less, the government makes 2/3rds less. The government gets reamed more by this trend than the individual. When will they start rewarding American tax payer creation? All they do is pass more laws for lawyers, more taxes, and more regulation making American taxpayer creation even less attractive.

[LurkedLongEnough]

overseas outsourcing ping - CT

[snopercod]

We should be wringing our hands.

My neighbor here in NC owns a company in Dayton which used to be an intermediary between companies with a need for powdered metallurgy parts, castings, etc., and American companies that produced such parts.

They almost went out of business last year.

To save the business, they now have become an intermediary between those same "principals", and Chinese manufacturers.

He told me a story last week about obtaining a contract with a company that advertises "Made in America". He was instructed NOT to tell the management where the parts were really coming from.

[Desron13]

There is no possible way to have any kind of living wage in the IT field if we have to compete with workers in third world countries. This is not simply whining on the part of the American IT people. I currently work in the IT field but am thinking about getting out. The problem is that I don't see any decent paying job field that isn't susceptible to this kind of outsourcing. The huge influx of low paid workers from the south is eroding the income of the bottom tier and the outsourcing of skilled jobs to other third world countries is wiping out the upper tier. There is a major correction coming when the people of the US can no longer afford the goods and services of many of these outsourcing companies. Maybe I'll start sharpening up my burger flipping skills. Third World, here we come!

[Desron13]

By the way, the main reason we are not competitive with these countries is the amount we pay for our nanny state big government socialist monster at all levels. Taxes and regulations are strangling us. For every dollar we pay in income taxes, there are probably two built into the cost of everything we purchase. Lets finally please get it straight. Companies do not pay taxes, WE DO!

[OldFriend]

Some would rather not address the issue of the taxes on those evil corporations..........

[RLK]

Don't worry about it. No matter how many industries and jobs are sent out of the country, our carefree life will go on forever because we have got accustomed to it. --at least for those as yet unaffected.

[stylin19a]

I'm having trouble with the numbers. Isin't salary part of a project's cost ?
If so, shouldn't 90% lower wages genrate more than 20% savings in project costs ?

[The Duke]

This is where it will be worth to pay 20% tarrif. Fair market at work.

Hey...I'm all for tarrifs! (Even though I'd be one of the tariff-payers in this case).

[A. Pole]

If so, shouldn't 90% lower wages genrate more than 20% savings in project costs ?

I guess there is a lot of overhead including the profit for the foreign middlemen.

[GiovannaNicoletta]

Is there a list some place of companies that have fired American workers and sent their jobs overseas?

The only one I'm really familiar with is Dell. It would be helpful if I had a list - I will be more than happy to not buy products from these companies. Also, is there an ongoing, organized effort to boycott these places?

I'll do my small part if I know who deserves my business and who does not.

[cpst12]

>>Supporters say the move abroad saves billions, gets work done faster, resolves labor shortages and frees U.S. employees for more creative work.

Want fries with that?

[dixie sass]

One-half of the SCANA work force is in India and they are the company that provides my electricity. I also bank with Bank of America.

The two largest banks, Wachovia and Bank of America have foreign workers handling our money? That isn't right. I don't know about others, but I think I'm going to start shopping for a bank that doesn't use anyone other than Americans and possibly local to do all of the work, including IT work.

This is another example of Americans pricing themselves out of jobs, isn't it?

[dadokane]

to anyone:

my neighbor is graduating with an IT degree come january. says he'll start in mid-60's. does have a small criminal history with 3 year probation just ended.

should i make a short term loan to him based on his confidence he'll get hired?

thanks.

[Huber]

The two largest banks, Wachovia and Bank of America have foreign workers handling our money?

Most offshore work in banking tends to be around call center support, IT operations, etc. I can't comment on B of A, but I'm fairly certain that Wachovia has no offshore workers handling domestic consumer accounts.

(If, however, you are doing international banking transactions, wiring funds to Hong Kong and such, than of course your funds will be handled offshore, by definition!)

[Huber]

my neighbor is graduating with an IT degree come january. says he'll start in mid-60's. does have a small criminal history with 3 year probation just ended.

should i make a short term loan to him based on his confidence he'll get hired?

Dr. Laura says; "Never lend money to friends." If you want to give a grant as an outright gift, that is fine, but lending will destroy the friendship.

[Ronzo]

I'll do my small part if I know who deserves my business and who does not.

While that is a very nice sentiment, the truth is that There IS NOT one major corporation in the US of A that HAS NOT fired people (or SUPPLIERS) in order to get cheaper help/products from overseas. Not one.

I hope you like hunting & fishing.... (and farming...)