Lawmakers Can't Arrest U.S. Job Shift to India to Lower Costs

Bloomberg ^ | 12/31/03 | Bloomberg

[Pikamax]

Lawmakers Can't Arrest U.S. Job Shift to India to Lower Costs Dec. 31 (Bloomberg) -- Bob Thibodeau founded Financial Systems Architects in 1998 to help companies such as Citigroup Inc. handle electronic transactions. By 2001, he was driven out of business. Lower-cost Indian competitors undercut his bids on two straight contracts, he said.

[thoughtomator]

In 20 years, will there be any more US citizen engineers or programmers?

[RiflemanSharpe]

I see the issue of decent paying jobs being the one issue the rats can hurt Bush with.

[Thermalseeker]

India produces 67 percent more engineers and computer scientists each year than the U.S. does

Thanks to our wonderful Government Indoctrination Centers, uh, I mean skools......

[TheFrog]

Re:"In 20 years, will there be any more US citizen engineers or programmers?" Neither, both will have been moved to India, China, Russia. But have no fear lots of Wally World jobs will be available for people with BS or MS : )

[chris1]

These aeticles make me vomit. There is something these leeches can do, end the burdensome, onerous, punitive, taxation and regulation of every aspect of our lives!!!!!!!!!!!

[rit]

``We used to think that displaced workers, given new training, could move up the value chain,'' former U.S. Trade Representative Charlene Barshefsky said in an interview. ``There is now a question about whether that upward movement will be possible.''

This is a significant issue. IT professionals often work in specific fields (i.e., C#, Vbasic, Oracle Admin, ...etc). Technology changes and their skill sets are no longer meaningful. It used to be that job placement with retraining was possible. Now, however, retraining cast the IT professional at a disadvantage in that they have no on-the-job experience in that new field. Thus, more incentive to outsource overseas at cheaper rates. This is not going to be fixed anytime soon.

[CasearianDaoist]

Maybe not this year but if this issue is not addressed in some way it will become the issue that the Democrats use to take back their power. It is no joke and the tht Republicans have their heads in the sands about this. It is silly to imaging that we can retrain 50 year olds or that the boomers, amny of whom are just entering thier 50s. can take major pay cuts. It will cause a real estate collaps, their kids will not go to college and there will be a crushing tax short-fall. If advancement is limited to a few "professionals" it means the end of the middle class, more socialism and stagnation in industry science and technology. You cannot have a free society without an iindependent middle class.

There will not be a new technology to go to: any job is at risk. Why go through all that work to have a $50k a year job. Just go on the dole. You won;t be able to buy any property anyway with that salary and there is no reason that no matter what you do you will keep your job even if you are the best. You own children will laugh at you. Watch the Republicans blow this - it will kick them out of power and keep them out for another 50 years, if we have a country left by then.

[stylin_geek]

What is also getting out of hand is how many companies want someone who can write VB, C#, C++, set up and administer a web server, then, a little later on, bring up a couple of file servers, and add them to the network. All while maintaining an Exchange server, and troubleshooting network problems.

[Drango]

In an October speech to the Business Software Alliance in Washington Grove called for $1 billion in government spending to improve college-level science and math education, boost research and revive the technology infrastructure to keep jobs in the U.S.

Yet Intel slaps every high-tech American worker in the face by hiring H1-B foreigners.

[Mr. Bird]

In November, Dell Inc., the world's second-largest computer maker, said it would switch some corporate customer support calls from a call center in India to the U.S. after receiving customer complaints.

Having been labeled a "free traitor" here some time ago, I had my first personal run-in with outsourced U.S. jobs last week: American Express customer service. I figured it out because every rep was named Preet, Jugdesh, Zima, or some other Indian name.

The experience was horrendous. The essential failure, it seems, in outsourcing a customer service function is the cultural differences. A sharp service rep in the U.S. understands that customer is "always right". Of course, that's not really the case, but it's a mantra that U.S. businesses have successfully used for decades. The Indian reps tended to strike an educational pose: "that's just the way it is". There is no nuance to their communication skills. Yes, they speak and understand English. But they don't understand Americans

End result is that Amex is losing a very good, long-time customer. I'm sure I'm not the only one. It's possible that this market force could draw jobs back. And, if in the end the IT talent is just as inept, we'll see a similar migration back to our shores.

[landorepub]

This line really burns my toast - ``Not only are Indian companies a third of the cost, but they actually are better". Better in what way? Thats a hell of a statement and I'd like to hear him back it up with some facts.

[thoughtomator]

He's just trying to sell his product.

[inPhase]

I quote "Not only are Indian companies a third of the cost, but they actually are better,'' Thibodeau said in a telephone interview from his office outside Boston. ``It's really kind of scary.''

This is really poor, hope he lives in India. No. We are better, more creative especially, have self starting abilities also esp., and I speak from experience in teaching and hiring in the tech world. But "they" and other 3rd worlds will work for nothing and programming has become very boring to US workers, public school failure to the US notwithstanding (yet).

Bush will win (at least if todays election) and the election would be more competitive if the demo said he will cut taxes -- as Jack Kemp pointed out.

Checking out for the day,
Happy New Year!

[sinkspur]

I see the issue of decent paying jobs being the one issue the rats can hurt Bush with.

The Democrats can't do anything about it either.

[sinkspur]

We are better, more creative especially, have self starting abilities also esp., and I speak from experience in teaching and hiring in the tech world.

The major difference between lower-level customer service reps in India and in the United States is that Indians will not leave the job in the first year, whereas the turnover in customer service in the US call centers is nearly 100% a year.

Experience counts, and, India is not the only place outsourcing is going to. Malaysia and the Phillipines are two other hot areas.

[RiflemanSharpe]

The Democrats can't do anything about it either.


They do not have to. All they have to do is assign blame and say if elected I will do something about it. The sheeple will follow.

[inPhase]

Nah, small us companies are going bust for this.

Let them post these jobs. But---- "they" will work for almost nothing as their economies are sh!^. So we are really transfering our wealth yet another way don't you see it?

please excuse if I run, will answer if you need later.

[Taliesan]

Neither party can do anything about it.