Posted on 04/28/2005 6:47:57 AM PDT by IntlObserver
Is offshore outsourcing good or harmful for America? To convince Americans of outsourcing's benefits, corporate outsourcers sponsor misleading one-sided "studies." But very few people have looked objectively at the issue. These and the large number of Americans whose careers were destroyed by outsourcing have a different view of outsourcing's effect. But so far there has been no debate, just the shouting down of skeptics as "protectionists." Now comes an important new book, "Outsourcing America," published by the American Management Association. Authors and brothers Ron and Anil Hira, are experts on the subject. One is a professor at the Rochester Institute of Technology, the other a professor at Simon Fraser University. The authors note, despite the enormous stakes for all Americans, there is denial among policymakers and corporate champions about outsourcing's adverse effects on the U.S. The Hiras interject harsh reality where delusion has ruled.
(Excerpt) Read more at washingtontimes.com ...
Just ask Dell what outsourcing their tech support work to India has done for them.
Their bread-and-butter, bulk corporate sales, is leaving them in droves.
I tried to call dell support to fix a family member system. The hard drive crashed and all I needed was an RMA and a box to send it to them, it was under warranty. I could not understand three of the people I talked to. India tech support sucks.
What are you going to make it illegal to do business over the internet? If you ran a business with call center operations would you rather hire Americans with excessive FICA taxes, worker comp, unemployment insurance payroll costs plus inviting a harassment lawsuit every time you fire an employee? or would you try to get away with moving your operation to asia where those costs dont exist?
Mamma - don't let your babies grow up and become cowboys engineers.
Uh huh.
That's why coporate clients are dropping them. It cost them alot of time (money) to deal with foreign tech support.
They look at "total cost of ownership" which includes time lost on the phone by their very expensive IT people. The cheap pricetag on each box doesn't tell the whole cost story.
Years ago, my husband ordered a Dell laptop. They sent us two instead. We called and told them and they said that they'd send us a return label. Never did and we didn't know where to return it. We weren't billed. We kept it in the box for many months and finally got it out and used it. Two for the price of one. This is costing them.
Roberts should be reading the IT press. If he were, he'd be hearing about the parade of failed, over-budget outsuorcing projects.
Usually, when a large corporation undertakes a major initiative to save money, they usually end up spending much more than they save.
That's what they are trying to do. Itr will wind up costing them more in lost business than they will save by outsourcing.
The free market usually does correct mistakes made by business.
The free market usually does correct mistakes made by business.
"?or would you try to get away with moving your operation to asia where those costs dont exist?"
I agree with you 100%, but when you do move, dont call yourself an American corp hiding under the same brand name.
I wonder how long you'll last.
And where the operation may not be able to perform its buisiness role due to communications and logistics problems? And where the poor quality of service offends your customers and sends them flying to your competitors?
Buggy whips! Buggy whips! Buggy whips!
Smoot-Hawley! Smoot-Hawley! Smoot-Hawley!
/sarcasm
I dont like outsourcing, and eventually we wont have the brainpower here to develop new technologies, but I think the govt saddles employers in america with excessive payroll costs.
The problem is that America has a ball and chain around its neck where it is *impossible* to effectively compete with the Turd World. America is footing the bill for the world's military so these turd world competitors can concentrate on undermining our industries instead of spending on their armies. America has massive income redistribution schemes tied around its neck like SS, Medicare, and welfare - for the useless govt workers who redistribute the money. Furthermore, places like China don't care if their citizens drink used battery acid for tap water; they have no environmental overhead which makes their goods cheaper.
This is not a level playing field and the only people practicing "free trade" is us. No wonder stuff is cheaper elsewhere.
Outsourcing is now at the stage Personal Computing was in the early 1980s. At that time companies bought these beige boxes, plonked them on desks and waited for the magic to happen. It took roughly 20 years for the PC revolution to actually bear fruit. The magic came not with the machine (and its software) but with the application of it to real business problems as part of an overall strategy.
Likewise, outsourcing is at the voodoo stage. Companies decide that it sounds like a good idea. They sign a contract and wait for the magic to happen. They have, as it were, just plonked it down on the desk. It will probably take 20 years for outsourcing to truly be used in a way that is strategically (as opposed to short term, tactically) sound. Like early PC implementations there will be many failed outsourcing projects. However, companies will learn and improve and outsourcing will become a way to boost productivity and efficiency.
The early stages of industrialization were rough. Any major change is disruptive and uncomfortable for those in the middle of it. Globalization is a similar change; it is highly disruptive and very uncomfortable, but we will emerge the other side far better for it.
While the beginnings of the industrial age were traumatic for some, I doubt there are many who would wish it never happened. We are in the early (traumatic) stage of globalization, but if we stay the course, we will come out of it far better. Indeed, globalization has the potential to positively effect more people than industrialization ever did.
The United States is well placed to benefit from globalization. The great strength of the United States has not just being the development of technology, but, more importantly, the use and deployment of technology. It is the flexibility and dynamism of the US economy that will help it benefit from globalization.
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