Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Outsourcing boom brews a season of despair in US
Economic Times of India ^ | August 23, 2003

Posted on 08/23/2003 11:03:07 AM PDT by sarcasm

WASHINGTON: As President and chief bottle-washer at his one-man web development design firm, Mark Oesterle often has to decide which high-tech workers to hire to fill a stream of small contracts.

Sometimes he uses locals in Charlotte, North Carolina, to programme and design. Other times, he’ll throw the work to high-tech mavens in Austin, Texas, Columbia or South Carolina. With virtual work, geography isn’t important. Except that for Mr Oesterle, who regularly attends a job-seekers’ group studded with unemployed high-tech workers, geography ends at the US border. He has vowed not to move work to overseas markets like India, where eager high-tech workers can be hired at a fraction of US costs. “I’d rather give up the business than take away jobs from people who are unemployed,” Mr Oesterle said.

The 45-year-old is swimming against a stiff current. A study last month by a computer consulting firm found one in 10 jobs in US computer services and software could move to emerging markets such as India or Russia by the end of ’04.

Examples abound. IBM has said it has no choice but to expand software and semiconductor development overseas. Electronic Data Systems Corp, the world’s No 2 computer services firm, has moved work to what it calls the most economical locations — including India, Egypt, Poland, Canada and Brazil.

A raft of technology jobs has vanished since the ’01 slump began. Of 2.7m jobs lost since March ’01, more than half a million — or one in five — have been in programming, Internet publishing, computer systems design, telecommunications and data processing.

America has long relied on cheap immigrant labour, filling jobs US workers find unappealing. Even sending factory jobs to Asia or Mexico has been grudgingly accepted by consumers as the best way to satisfy their appetite for inexpensive clothing and electronics.

But with businesses now shipping white-collar service and high-tech jobs overseas to cut costs, a whole new sector and class of workers is feeling the pain.



TOPICS: Business/Economy; News/Current Events
KEYWORDS: iraq; outsourcing
Navigation: use the links below to view more comments.
first previous 1-2021-4041-48 next last
To: sarcasm
Outsourcing is ....grudgingly accepted by consumers as the best way to satisfy their appetite for inexpensive clothing and electronics.

When did they ever get a real choice? Often the very best and latest of new designs were always made overseas FIRST! There was never a straight apples vs. apples comparison for shoppers, with a big unavoidable sticker for country of origin on the product. Walmart never gave them that choice...indeed they lied about it. Target didn't. K-Mart didn't. Even Sears didn't.

21 posted on 08/23/2003 12:42:06 PM PDT by Paul Ross (A nation which can prefer disgrace to danger is prepared for a master, and deserves one!-A. Hamilton)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dane; netmilsmom
First , thank you for the courtesy of flagging me to your comments regarding me.

As soon as harpseal states his position publicly that he wants to dictate his laws on business.

Now why should I satae taht I want to dictate my laws on business when that is clearly not and never has been my position. I want to convince peopel to get the message to politicians about this paln as a possible solution to the problems. I have no desire to dictate to anyone. can the same be said of those who advocate our current trade envirornment? Certainly not at least as a generality.

Such as that American business cannot find the lowest costs to benefit consumers or stockholders.

While I certainly agree that American businesses should find teh greatest benefit to stockholders i also hold they should stay within the law and that government policy on tariffs should be set to benefit the entire USA not just business managers who find personal gain at the longer term expense of their stick holders.

Clearly I am opposed to government picking winners and losers in the American economy. You seem to be opposed to denying foreign governments teh right to pick winners and losers within theAmerican economy for teh benefit of foriegn nations at the expense of teh US national interest.

You had a candidate to vote for in 2000, his name was Pat Buchanan, in 2004 his name is Dick Gephardt.

Now as far as Pat Buchanan's stand it was against the destruction of america through the continuation of Clinton's trade policies but Bush ran as a compassionate conservative. We do not have a one issue Presidency. Now Gephardt has come out with his stand on trade issues he is not for tariffs he is for an international minimum wage. In short he is just anotehr internationalist. Now why would anyone try to encourage someone to who has an expressed an disgut for internationalists who favor teh current trade structure which is really quite Marxist in it inspiration While special safeguards should continue to be available for developing countries, the developed world should not resort to such instruments. Since tariff reduction is supposed to be in line with the Uruguay round approach, rich nations are to go in for deeper cuts.

No I do not mean to imply you are a Marxist.

Now I note the following please tell me of one place where I have stated I would like to dictate anything. My proposal calls for teh goverment to use its enumerated poweres I must add clearly enumerated powers. I propose cutting taxes. i propse getting rid of the Marxist focus of our tariff policies, i propose cutting unecessary regulations. I propose voluntary zones where businesses may opt to get a tax break if the decide tehy like the terms. No regulations imposed tha they do not voluntarily opt into and may opt out of at any time.

If you are implying tariffs are bad policy I have asked you before for soem evidence of the allegartion taht a tariff produces a net harm I have posted such quatiative anaylsis of at least one case where a tariff provides a net benefit to the American Economy.

22 posted on 08/23/2003 1:24:01 PM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Dane
As soon as harpseal states his position publicly that he wants to dictate his laws on business.
Such as that American business cannot find the lowest costs to benefit consumers or stockholders.

Well Dane, at least you have the honesty to admit that your agenda is to lower the wages, benefits and standard of living for the vast majority of Americans. Afterall, consumers don't benefit one iota if they don't have employment adquate to pay for what they consume.

"The high wage begins down in the shop. If it is not created there it cannot get into pay envelopes. There will never be a system invented which will do away with the necessity for work."

-- Henry Ford

There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.

-- Henry Ford


23 posted on 08/23/2003 1:30:55 PM PDT by Willie Green (Go Pat Go!!!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Willie Green
Well Dane, at least you have the honesty to admit that your agenda is to lower the wages, benefits and standard of living for the vast majority of Americans. Afterall, consumers don't benefit one iota if they don't have employment adquate to pay for what they consume

Huh, how does innovation and seeking lower costs to the consumer, corrupt consumers?

Please tell me, am I corrupt for seeking the lowest price and highest quality for a car, TV, or salmon steak?

24 posted on 08/23/2003 1:37:21 PM PDT by Dane
[ Post Reply | Private Reply | To 23 | View Replies]

To: staytrue
See number 2 for that provision as far as software and engineering are concerned. tariffs may leveied on antything brought into the USA. If you are asking, "How does one prevent smuggling I have also answered tha before and will give several methodologies all of which have a far better chance of working than our gurrent anti-smufggling initiatives due to need for companies to maintain books etc and not engage in smuggling due to teh jepordy it places on othe rcompany operations. remember we are talking a tariff not a prohibition.
25 posted on 08/23/2003 1:40:21 PM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
[ Post Reply | Private Reply | To 12 | View Replies]

To: harpseal
Re: your #3: You missed your calling. I believe we just found our next Secretary of Labor. Brilliant.
26 posted on 08/23/2003 1:45:05 PM PDT by RightOnline
[ Post Reply | Private Reply | To 3 | View Replies]

To: ex-snook
Is that Snook as in USS Snook (SSN-592)?
27 posted on 08/23/2003 1:46:21 PM PDT by Doohickey (Hey, I need you to go down to the torpedo room and get me some tag line.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: sarcasm
What despair?

I see the economy growing by leaps and bounds, as evidenced by nearly every business statistic released in the past two months, especially this past Friday.

It seems to me that these Bush hating people who post these doom and gloom articles are attempting to stifle growth by using psychological subterfuge.

They did the same thing in 1992 when the economy, which Dimwits claimed was the worst in 50 years, was later proved to have been growing at 3-5 percent.
28 posted on 08/23/2003 1:50:46 PM PDT by Edit35
[ Post Reply | Private Reply | To 1 | View Replies]

To: sarcasm; All
I have yet to see another key reason for such "job flight" in these threads..........the labor unions.

While it's true this article refers to white collar jobs, we all know that the labor unions were largely responsible for the ridiculous labor costs in this country. Key point: cost needs to be in line with productivity; we don't mind seeing workers being paid very well, but they'd damn well better produce. Labor contracts seem bent toward max pay for least amount of work.

Is it any wonder that manufacturing jobs began streaming out of this country as a result? Is it any surprise that, once that flood gate was opened, that the next level of workers (white collar) found their jobs equally in jeopardy?

Does this really surprise anyone?

There are never simple reasons for particular dynamics in macroeconomics..........but personally, I place the blame squarely on the American labor unions as the catalyst for all this overseas outsourcing and the accompanying misery.

29 posted on 08/23/2003 1:51:20 PM PDT by RightOnline
[ Post Reply | Private Reply | To 1 | View Replies]

To: RightOnline
Re: your #3: You missed your calling. I believe we just found our next Secretary of Labor. Brilliant.

Now that would require a politician appointing a person and the Senate advising and consenting to a person who would say it out loud when they were "Full of Sh*t" in just those words. Elective and appointive office is ruled out by my personal foibles. I find it hard enough holding together and not flaming those who flame me. admittedly this is hard to do and not alll that recent so we shall see how long it lasts.

30 posted on 08/23/2003 1:54:53 PM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
[ Post Reply | Private Reply | To 26 | View Replies]

To: Dane
Please tell me, am I corrupt for seeking the lowest price and highest quality for a car, TV, or salmon steak?

When the combined effect of Government policies and regulations places utilization of our own productive resources at an economic disadvantage to those of other nations, Yes, I judge that to be not only corrupt, but also tyrannous and treasonous.

And I care very little about how loud you screech your self-serving, mastabatory rant when the welfare of our nation as a whole is at stake.

31 posted on 08/23/2003 2:09:04 PM PDT by Willie Green (Go Pat Go!!!)
[ Post Reply | Private Reply | To 24 | View Replies]

To: Brilliant
Season of despair? How do they figure?


Losing your job to someone in Asia will not give you the jollies. I know I lost mine to some people in Asia. I even had to train them before I went.

If jobs do not get better soon Bush will have a hard tiem next year. The white collar middle class is begining to feel threatened. The Republicanss can not afford to lose their votes.
32 posted on 08/23/2003 2:18:09 PM PDT by scottlang
[ Post Reply | Private Reply | To 5 | View Replies]

To: Steven W.
I think this is the third time I've seen this posted this week on FR - must mean that you doom & gloomers are really near the point of desperation to come up with new material ROFLMAO

Gee this is the first post of this I have seen of Free Republic I guess I don't get on many offshoring threads. And as for gloom and ddom why would you characterize the need to address a problem in the American economy as "gloom and doom?" Why not addrss specific isues and maybe we can all improve our knowledge?

33 posted on 08/23/2003 2:24:30 PM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Dane
>>Such as that American business cannot find the lowest costs to benefit consumers or stockholders<<

If we continue to send jobs overseas, there will be no consumers. We will be out of jobs. Don't count on us to be taxpayers either. Many young people will go onto welfare and YOU will be paying for them.
34 posted on 08/23/2003 2:26:25 PM PDT by netmilsmom (God Bless our President, those with him & our troops)
[ Post Reply | Private Reply | To 14 | View Replies]

To: dyno35
I see the economy growing by leaps and bounds, as evidenced by nearly every business statistic released in the past two months, especially this past Friday.

I presume you are referring to the leading economic indicators and not the current numbers of those actually employed.

It seems to me that these Bush hating people who post these doom and gloom articles are attempting to stifle growth by using psychological subterfuge.

Now pleas etell me why you presume those who post arrticles about structural problems in teh US economy are Bush hating. Certainly I do not qualify as do a number of othe rposters who actively worked to get Bush elected. There is a great deal of difference between advocating Bush adopt a winninbg strategy and being a Bush hater.

They did the same thing in 1992 when the economy, which Dimwits claimed was the worst in 50 years, was later proved to have been growing at 3-5 percent

In 1992 the Democrats ran against GHWB on the economy. His prior tax increase consent in a deal with the Democrats where he delivered on his end of the deal violating his "READ MY LIPS NO NEW TAXES" pledge of the 1998 campaign cost him significant votes and clearly led to the Ross perot candidacy. Those of us who remember and do not wish to see another Democrat in the White house bring this up hopefully to get Bush to "triangulate teh issue of oursourcing and structural changes in the US economy by being able claim his plan is out there at least and actively being advocated.

It really does not help to infer malice where none exists. This has been posted many times before on Outsouring economy threads and IMHO you should have seen it. now I really do not remember you from any of the threads over teh past weeks where I have been actively posting but then agains I may have missed a whole lot.

35 posted on 08/23/2003 2:35:10 PM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
[ Post Reply | Private Reply | To 28 | View Replies]

To: Steven W.
I think this is the third time I've seen this posted this week on FR

Well i went to the source and the publication date on the Source is August 24, 2003. given teh time differecne not unusual. Perhaps you are mistaken on the number of times you saw it? Hmmmm.

36 posted on 08/23/2003 3:02:35 PM PDT by harpseal (Stay well - Stay safe - Stay armed - Yorktown)
[ Post Reply | Private Reply | To 16 | View Replies]

To: harpseal
bump. V's wife.
37 posted on 08/23/2003 4:25:59 PM PDT by ventana
[ Post Reply | Private Reply | To 36 | View Replies]

To: sarcasm
Thanks for the chart. Those that get off on a Schadenfreude high from the problems American IT workers are having will find it amusing no doubt -- that is, until it sinks in that it's not just IT workers anymore.

It's clear today that the definition of recovery is market spikes and fewer workers losing jobs this week than last. The chart shows historically that employment lags a tiny bit. Now it's not a lag it's more like another era for employment to recover if the 1990s recovery is any guide.

Who needs recurring consumer demand that jobs bring. The market has recovered. It's happy days!

38 posted on 08/23/2003 5:49:14 PM PDT by WilliamofCarmichael
[ Post Reply | Private Reply | To 17 | View Replies]

To: dyno35
Leaps and bounds ? 10.2% real unemployment when you count in discouraged workers is leaps and bounds ? What are you smoking ?

The decimation of the American technical middle class by outsourcing is a problem all the Dale Carnegie happy talk in the world won't fix. This is a permanent drain of buying power from Americans as jobs and industries go out and China in return purchases....Treasury bills. Not the manufactured goods they were supposed to in the fantasy world of free trade. Treasury bills.
39 posted on 08/23/2003 7:26:21 PM PDT by Tokhtamish
[ Post Reply | Private Reply | To 28 | View Replies]

To: Tokhtamish; harpseal
The US has a workforce that is better paid than most of the world. I think the rest of the world would like to acquire the high paying US jobs. If the US workforce stands still, the rest of the world will eventually catch up and maybe even pass the US.

My conclusion is that part of the long term trade solution is that the US must have a workforce that is willing to innovate and stay one step ahead. There are older members of the workforce that are losing high paying jobs and I think they are not innovating either. They are mostly dreaming of better jobs and better days gone by and complaining about foreign competition instead of adapting and improving.

I think there are decent points made but I think you have left out the fact that in the long run, we must continually improve and udate ourselves too. The rest of the world is mostly hungrier than we are. To stay on top, we must have the hunger, and desire to compete and stay ahead.

I don't see the hunger or desire in most of the US workforce.
40 posted on 08/23/2003 10:01:20 PM PDT by staytrue
[ Post Reply | Private Reply | To 39 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-48 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson