U.S. Offshore Outsourcing Leads to Structural Changes and Big Impact

cio.com ^ | August 13, 2003 | Diane Morello

[riri]

but I want to find something they can't outsource, whatever the hell that turns out to be

That seems to be the general consensus. But, I have to say what is going to happen to the wages of these fields when there are so many qualified people to fill the positions?

Everyone can't be a lawyer, doctor, nurse, truck driver or dentist. As it is, we have a new dentist office opening on every corner. It is getting so competetive, I have finally broken down and had a $2500 procedure done this summer. ($2500 is what all my previous estimates were). My dentist offered to do it for $925, if I did it before September 1.

[stylin19a]

I think it's spelled Satyam. How do I know ? I had to train them for what I do (I didn't train them for what I know). Had I been an employee, I would have quit rather than train them, however, I work for a consulting firm. We have other clients and we have products...so I'm safe for today. ( In consulting, it's here today gone today).

Interesting thing......the 2nd in command for Satyam on this particluar client's site opined that they weren't ready to take over. He was summarily fired..then rehired as a programmer.

Near as I can figure, the difference between us(we designed and developed the system)and Satyam... is the difference between a teacher and a baby sitter.

The only thing I see here, is an opportunity to make big bucks cleaning up their mess.

[Hat-Trick]

My President is an honorable man. Maybe someday we'll be able to say the same thing about you.

How can one be a liar and honorable at the same time? He is first and foremost, a politician, and hence, a liar. My proof of this? His "Islam is a religion of peace" statement. Can anything be farther from the truth? He told a lie that he knew was a lie to simply pander to the muslim/black vote in this country.

When he seeks the middle ground of appeasement he alienates those of us who have the ability to see through his BS.

Hat-Trick

[harpseal]

My response was based upon your statements of all or nothing if one just wants a list of problems which also need addressing we could include the ednagered species act and the damily leave act etc. However you were the one who wanted to drop a nuke on the problem who did not wish to chase down individual enemies with an M-16. Please I sometimes have a hard time undertanding where you stand.

In short I am asking questions to determine axactly what you are saying.

[hedgetrimmer]

Who cares about the southern border?

I do and millions of other Americans who've seen their quality of life decimated by the flood of individuals who do not believe in the American Constitution, or keeping the ideals of our founding fathers alive. My town has suffered from it mightily, as have towns and cities all over the nation.

Did you know there are more than 100,000 gang members in LA alone? Thats an army! Most of them are immigrants(legal or otherwise) from Mexico. Most would not be here if we had border security. What would happen to us if they organized?

Urban sprawl, congestion, school overcrowding and soaring prices for homes in the 1990s are all byproducts of "record levels of mass immigration," according to a new report issued by a group favoring tighter borders.

[riri]

Do you know there are more gang members, per capita, in Albuquerque, NM than in LA?

[Cronos]

If the failure rate was 100% and they've been sending it out there for the past 3 years, don't you think someone would have noticed it?????? Someone in the higher echelons of business?

[lelio]

I'll support your tariffs only if you tie it into a bill which eliminates the myriad legislative barriers that unjustly inflate the cost of entering a business market...

Now you're talking. The government seriously needs to look into:
a) how it is going to fund itself
b) why would anyone think of starting up a business in the US?
c) why would anyone get a higher education degree when those jobs are going overseas?
d) what's the net effect if everyone is one some government dole of one kind or another (ie welfare, "child credit" tax rebates, retraining programs, etc)
e) what's going to happen to the middle class when they're highly unemployed or underemployed?

You hit it right on the head: we've had it easy for a number of years so the government can creep in with its myriad of legislation as they were the boom times. That's no longer.

[thimios]

Yea I’m still on the train (on the back for now) I trying to find a good place to jump and roll without fatally injuring myself.

[hedgetrimmer]

It saddens me to hear that. No, I didn't know.

[Hat-Trick]

Who cares about the southern border? How many Mexicans were part of the conspiracy that used airplanes to kill on 9/11? Please don't let prejudice against people of a different skin color cloud your perception of the facts.

OK...let's talk for a second about those who were part of the 9/11 conspiracy, and you can begin by explaining our President's comment that "Islam is a religion of peace". Go no further with me until you've spun that bald-faced lie for the man you'd follow blindly over the cliff.

[gedeon3]

bs

[harpseal]

If the failure rate was 100% and they've been sending it out there for the past 3 years, don't you think someone would have noticed it?????? Someone in the higher echelons of business?

While one might hope so from experience at a number of places as a consultan noticing such things is not a good policy for a senior manager. The person who originally decided to outsource may well have enough power to punsih anyone who challenges him while tha same person may not be an effective challenger to others at the same level seking advancement so it is not in anyone's personal interest to call attention to the unpleasent reality. just what I have seen of corprate politics in action of some places.

[Marauder]

our elected officials should do something to level the playing field for Americans.

There it is; I don't want "protection" per se, but I can deal with a level playing field.

[SouthParkRepublican]

"I expect either a retraction or a reference to a post where I stated that the American economy was going gangbusters in 1932 as I would never make that statement.

Good luck Harp but dont hold your breath. It's more likely pigs'll fly out of my butt.

[RinaseaofDs]

It does not have to be this way. All of the apparati are in place for GWB to put an end to this:

1. Kill the H1-B and L-1 visa program
2. Ban the export of certain jobs in the same way we ban certain dual use technologies.
3. Erect tarriffs that level the playing field for US IT workers a bit. I'm not arguing that the dot com boom inflated IT salaries beyond what may have been reasonable, but the main reason why you can hire 8 Indians for one US IT worker is that you don't have the tax, benefit or regulatory burden with the Indians that you would with the US worker.
4. Ban the processing of certain types of personal data by other countries under existing privacy laws.
5. Stop US indemnity of US investments in foreign countries. If HP builds something in India, and it gets firebombed, you and I pay. Why?
6. Remove the tax incentives on foreign investment and job displacement. It's one thing that Indians make less. It's another that tax incentives are provided to encourage it.
7. If you want to base your call center in India, then my caller ID better come up with 'New Dehli Call Center' and not Verizon Everett.

So far, we are still the biggest market in the world. Time to put that to work while we can. If you want to sell your products here, then participate in this economy. Even the Japanese and Germans get this. I have two Nissans, both assembled in Smyrna, TX. BMW and Mercedes both have plants here. Hyundai is building three.

[lelio]

4. Ban the processing of certain types of personal data by other countries under existing privacy laws.

As much as it kills me to say this: I think trial lawyers might save us from this practice going much further. I'm just itching to hear about a case of someone's medical records being strewn across India and East Asia and that person sueing the hospital he went to, the insurance company, and the offshore processor of this account.
If I were younger I would consider going to law school just for this opportunity.

[harpseal]

Good luck Harp but dont hold your breath. It's more likely pigs'll fly out of my butt.

I know. I do admit to sometimes being a bit harsh to some who repeatedly engagein the same tactics. But when I see people continually misrepresenting facts that they have been informed about before I lose my patience.

[GOP_1900AD]

A dark thought. What if the CIO is here on a visa or a Greencard? Possible conflict of interest, eh? It would be intersting if, for example, the US Attorney's office, or for that matter even the CIA or DIA were to audit the firms with the 10 largest volumes of outsourcing as follows:

1. List the nationality of your CIO and other executives involved in outsourcing decisions.

2. Supply us with a copy of your procedure for doing background checks of non US Citizens whom you employ.

3. Do background checks include?:

a. Property held in foreign countries, shares held in foreign companies and other assets and financial interests outside of the USA?

b. Past and current standing vis a vis foreign military and intelligence organizatons?

c. History of any anti American activities, membership in anti American political groups, and other activities which have threatened or continue to threaten US security?

That's about as far as I'll go here... they'll have to pay me for anything more...

[Diva]

I largely blame the idiot media. All these reporters writing stories about outsourcing, and not one anywhere actually asks the question, "did it succeed?"

My son the historian says, "It doesn't matter since history almost 100% of the time has shown that industry 'big wigs' don't truely understand the significance of success v. failure. Regardless of the nature of the industry they have shown themselves to be more concerned with money in the short term. A rule of thumb is that they will always go with what they consider 'cheaper.' This seems to be one commonality between leaders of industry throughout history. The pointy haired boss at least goes back to ancient Babylon, probably farther!"