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White-Collar Exodus
ABC News ^ | July 29, 2003 | Betsy Stark

Posted on 08/03/2003 7:42:08 AM PDT by RockyMtnMan

Michael Emmons thought he knew how to keep a job as a software programmer.

"You have to continue to keep yourself up to speed," he said. "If you don't, you'll get washed out."

Up to speed or not, Emmons wound up being "washed out" anyway. Last summer, he moved his family from California to Florida for the Siemens Co., makers of electronics and equipment for industries. Not long after, Emmons and 19 other programmers were replaced by cheaper foreign workers.

Adding insult to injury, Emmons and the others had to train their replacements.

"It was the most demoralizing thing I've ever been through," he told ABCNEWS. "After spending all this time in this industry and working to keep my skills up-to-date, I had to now teach foreign workers how to do my job so they could lay me off."

Just as millions of American manufacturing jobs were lost in the 1980s and 1990s, today white-collar American jobs are disappearing. Foreign nationals on special work visas are filling some positions but most jobs are simply contracted out overseas.

"The train has left the station, the cows have left the barn, the toothpaste is out of the tube," said John McCarthy, director of research at Forrester Research, who has studied the exodus of white-collar jobs overseas. "However you want to talk about it, you're not going to turn the tide on this in the same way we couldn't turn the tide on the manufacturing shift."

India Calling

Almost 500,000 white-collar American jobs have already found their way offshore, to the Philippines, Malaysia and China. Russia and Eastern Europe are expected to be next. But no country has captured more American jobs than India.

In Bangalore, India, reservation agents are booking flights for Delta; Indian accountants are preparing tax returns for Ernst & Young; and Indian software engineers are developing new products for Oracle.

They are all working at a fraction of the cost these companies would pay American workers.

For example, American computer programmers earn about $60,000, while their Indian counterparts only make $6,000.

"It's about cost savings," said Atul Vashistha, CEO of NeoIT, a California-based consulting company that advises American firms interested in "offshoring" jobs previously held by Americans. "They need to significantly reduce their cost of doing business and that's why they're coming to us right now."

Vivek Pal, an Indian contractor for technology consulting group Wipro, whose clients include Microsoft, GE, JP Morgan Chase, and Best Buy, is hiring 2,000 Indian workers quarterly to keep up with demand. Pal knows American workers resent the "offshoring" trend but says all Americans will benefit in the long run.

"Globalization — whether it's for products or services — may feel like it hurts, but at the end of the day, it creates economic value all around," said Pal.

At the end of the day, Emmons has a different view: "If you sit at a desk, beware," he said. "Your job is going overseas."


TOPICS: Business/Economy; Culture/Society; Government; Philosophy; Politics/Elections
KEYWORDS: outsourcing
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To: Dane
All I was doing very nicely was discussing the topic

---------------------------

In the several years you hand I have been butting heads you have never been nice about anything. Everything you say has a subtle sadistic drstructive twist.

81 posted on 08/03/2003 9:08:04 AM PDT by RLK
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To: EnDinNJ
I don't think that business owner would have any other choice as they would need to remain competitive with companies who are outsourcing. That is why government involvement is necessary (I know that sounds wrong coming from a conservative). I firmly believe that the fed has been overregulating us here but not giving 2 bits about what happens under the guise of "free market global trade."

The Constitutional functions of the Federal government include laying of imposts and duties. Further individual states do not consduct foreign policy. The coining of money is another federal responsibility. These are all elgitimate functions of the Federal government and it is in no way contradictory for a conservative to want the Federal government to excise these functions correctly which is what you have argued for.

82 posted on 08/03/2003 9:08:07 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: Lazamataz
I think Bush will "get it" now.

I don't think so, based on what I've heard from him on this subject so far. I don't know what it is with the Bushes, there seems to be something genetic in the family that makes them completely oblivious to people experiencing economic and social upheaval. It may just be a natural outgrowth of growing up in the priviliged country-club set.

83 posted on 08/03/2003 9:08:20 AM PDT by jpl
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To: Dane
I like them because they are friendlier than the cashiers.
84 posted on 08/03/2003 9:08:23 AM PDT by raybbr
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To: EnDinNJ
I don't think that business owner would have any other choice as they would need to remain competitive with companies who are outsourcing. That is why government involvement is necessary (I know that sounds wrong coming from a conservative). I firmly believe that the fed has been overregulating us here but not giving 2 bits about what happens under the guise of "free market global trade."

I agree with you that regulation and the trial lawyers should be curtailed(especially the trial lawyers), but that still doesn't stop the fact that the world is getting smaller every day.

Look an owner of a company is going to look for the best way to put out the best product or service for the least possible price. The fact is that overseas outsourcing is a reality and it is very attractive to business owners.

Now we all know the reality. The ones who will prosper are the ones who take advantage of that reality, IMO.

85 posted on 08/03/2003 9:08:37 AM PDT by Dane
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To: Dane
If you owned a business and were able to cut your labor costs by a factor of ten, would you pass the savings on to your customer?
86 posted on 08/03/2003 9:10:32 AM PDT by Doohickey
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To: Doohickey
You could but why wouldn't you just pocket the difference by slightly undercutting your competitor. Demand drives prices not cost of production.
87 posted on 08/03/2003 9:12:44 AM PDT by RockyMtnMan
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To: Doohickey
If you owned a business and were able to cut your labor costs by a factor of ten, would you pass the savings on to your customer?

I'd have to, especially in a competitive market based economy, like the US.

88 posted on 08/03/2003 9:13:16 AM PDT by Dane
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To: Lazamataz
I assume you are being sarcastic, because it is clear Messr. Bush also knows nothing about computers. Systems Analysts and programmers are in a constant state of retraining. I never stop learning new languages.

---------------------

Bush knows nothing about anything. He's never done anything. As someone else here pointed out, his idea of an entry level position is sitting on a board of directors at $300,000 salary. He has lived in a world where money and positions have fallen on his lap because of trading the the family name.

89 posted on 08/03/2003 9:13:22 AM PDT by RLK
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To: harpseal
"These are all legitimate functions of the Federal government and it is in no way contradictory for a conservative to want the Federal government to excise these functions correctly which is what you have argued for."

Don't get me wrong I know it's constitutioinal. In fact it's one of the few powers granted to the fed. Guess it's just another example of them not respecting it. Wouldn't want to break precedent.

90 posted on 08/03/2003 9:14:02 AM PDT by EnDinNJ
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To: AlbionGirl
>>Somebody help this WC geinus develop a less annoying analogous summary statement.<<

The vultures are coming. The wagons are circling. The Crips are in the Hood.
91 posted on 08/03/2003 9:14:48 AM PDT by freedumb2003 (Peace through Strength)
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To: RLK
Bush knows nothing about anything. He's never done anything. As someone else here pointed out, his idea of an entry level position is sitting on a board of directors at $300,000 salary. He has lived in a world where money and positions have fallen on his lap because of trading the the family name

Well at least RLK you have finally come out of the DNC closet on FR and used rhetoric that proves, IMO, that you work within the bowels of the DNC.

92 posted on 08/03/2003 9:16:00 AM PDT by Dane
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To: harpseal
My point is that the market demand and supply create the price people are willing to pay for any commodity, including service. Jobs which give personal service are the ones which offer career choices for the future in America. When career choices for women were limited to nurse, teacher or secretary, the available workfoce was huge and the pay correspondingly low.

During the next 20 years as boomers hit the wall of aging, they will need to pay more for help in the areas of healthcare, thus creating career opportunities for Americans looking for a career.
93 posted on 08/03/2003 9:16:12 AM PDT by maica
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To: freedumb2003
That was good, very good!
94 posted on 08/03/2003 9:20:12 AM PDT by AlbionGirl (A kite flies highest against the wind, not with it. - Winston Churchill)
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To: Dane
"Look an owner of a company is going to look for the best way to put out the best product or service for the least possible price. The fact is that overseas outsourcing is a reality and it is very attractive to business owners."

Absolutely. Business owners and corporate CEO's have to do what they feel is in the interests of posting profit. Going in front of your shareholders and telling them that they wont make any money for the next few years because your long term plan does not include BPO wont fly with them.

This is why I feel it is incumbent upon the Fed to work out a tariff system that will equally effect all companies doing business in the US. You cant let one do it and not let another.

95 posted on 08/03/2003 9:20:37 AM PDT by EnDinNJ
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To: RockyMtnMan
Competition is the driving force of our economy. When talking about labor our skills are the widgets not our wages. Competition drives innovation and innovation drives prosperity. The mantra is skill to skill not wage to slave wage.

Well said! A culture which sopports competition is also the edge that America has over all other countries in the world.

96 posted on 08/03/2003 9:20:51 AM PDT by maica
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To: Dane
Name calling will not alter facts.

Although I don't agree with "Bush knows nothing about anything" I have to agree that his opportunities were handed to him on a silver platter. His families stature in society obviously helped him into Harvard and was I no way a financial strain on the Bush family.

Ultimately Bush had to prove himself well enough to become Governor of Texas and ultimately president of the US. He's done well in foreign policy (IMO) and poorly on domestic issues.

His handling of the economy will come under intense scrutiny leading up to the election. The tax cut was well timed and needed, but unemployment of the middle-class will keep spending to a minimum and deflate the power of the tax cut to stimulate growth.
97 posted on 08/03/2003 9:22:47 AM PDT by RockyMtnMan
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To: maica
My point is that the market demand and supply create the price people are willing to pay for any commodity, including service. Jobs which give personal service are the ones which offer career choices for the future in America. When career choices for women were limited to nurse, teacher or secretary, the available workfoce was huge and the pay correspondingly low.

My point was that importing guest workers in any industry artificially manipulates that free market and the jobs of nurse and psysiotherapist are two current examples.

During the next 20 years as boomers hit the wall of aging, they will need to pay more for help in the areas of healthcare, thus creating career opportunities for Americans looking for a career.

This should be a major growth area given the demographics provided these boomers are able to pay for the care they need if the Federal government is going to be paying then we are talking about an ever increasing part of our econmy being run by the government. This is the alternative to having a booming economy and protective tariffs in place.

98 posted on 08/03/2003 9:24:42 AM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
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To: maica
Competition is the driving force of our economy.

--------------------

Slave labor in other countries is becoming the dominent force in our economy.

99 posted on 08/03/2003 9:24:58 AM PDT by RLK
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To: Lazamataz
I think Bush will "get it" now.

I doubt it, I think that President Bush has a tin ear.

100 posted on 08/03/2003 9:25:33 AM PDT by Mini-14
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