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The Economics of Outsourcing (vanity)
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Posted on 05/20/2010 8:24:56 AM PDT by altair

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To: Alberta's Child

To me the most interesting thing about Spurlock’s show were the familiar issues. Things like the destruction of the family were concerns because Indian families were working different shifts and no longer dined or prayed together.

Another issue was religion. Indians are increasingly tied to the west through work which means their time off was often tied to Christian and other western holidays. I’m not going to get into a religious argument but its an issue where I can see their concern.


21 posted on 05/20/2010 9:02:28 AM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: brownsfan
While our government is killing jobs, and driving business offshore, they allow BP to do what they did.

I hope you mean giving them a pass on the inspections that should have been made but were not. I've lived in the 3rd world too long to be a "pure libertarian". Government and government regulation is required, it just needs to be sensible.

22 posted on 05/20/2010 9:03:17 AM PDT by altair (Violence is the last refuge of the incompetent - Salvor Hardin)
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To: Alberta's Child
This is why, for example, big pharmaceutical firms still do most of their R&D here in the U.S.

But not for long. This is the problem...when you instruct someone "how" to build your product, they learn idiosyncracies of the product that the "innovators" no longer have access to because they outsourced it to Asia. Actual manufacturing and innovation is a two way street. US companies assume that they hold onto the intellectual property of their products, but in reality they don't. The manufacturing company learns more about improving and innovation by the act of manufacturing than the original innovator, resulting in a complete transfer of intellectual property to the foreign company.

23 posted on 05/20/2010 9:04:25 AM PDT by Paco
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To: cripplecreek

Very interesting point. I could understand a lot of those concerns, when I think about how much different my work schedule was when I was living just two times zones away from New York City and had to account for the time difference in the hours of the New York Stock Exchange.


24 posted on 05/20/2010 9:06:49 AM PDT by Alberta's Child ("Let the Eastern bastards freeze in the dark.")
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To: altair

Morgan Spurlock produces a show called “30 days” where he attempts to put the viewer into the perspective of the other side. Sometimes he puts an illegal immigrant in the home of a border control proponent or a PETA freak in the home of a farmer.

Much of it is crap but he occasionally hits on something interesting like the show about the California IT worker following his job to India.


25 posted on 05/20/2010 9:10:54 AM PDT by cripplecreek (Remember the River Raisin! (look it up))
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To: altair
I hope you mean giving them a pass on the inspections that should have been made but were not.

That's exactly what I meant.

Government and government regulation is required, it just needs to be sensible.

Amen!
26 posted on 05/20/2010 9:33:26 AM PDT by brownsfan (The average American: Uninformed, and unconcerned.)
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To: TSgt

>> Off-shoring redundant technology and business processes is NOT innovation, it’s simply getting easy work done cheap.

That’s true, of course. However, believe at your own peril that Chinese and Indian and Eastern European and Russian folks can’t learn and think and design and innovate for themselves.

Europeans and Americans have no monopoly on brains. And they are already way behind in the perseverance and elbow-grease department.

We have been too busy eating up the fruits of past accomplishments — but not working nearly as hard as we should to grow new fruits. Therefore, if we don’t start “getting it” right away, and reversing the process, the rest of the world will soon be eating our lunch.


27 posted on 05/20/2010 9:34:35 AM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: brownsfan
Our elected officials don’t have the capability to understand the difference between constructive regulation and destructive regulation.

(Thanks for your clarification)

Don't forget corporate income taxes. One of the most evil inventions.

The hell of all this is is that if we eliminated corporate taxes and capital gains taxes without even touching personal income taxes, we could probably pay for enough of Obama's communist welfare state to survive for quite a long time without any particular new misery.

28 posted on 05/20/2010 9:59:39 AM PDT by altair (Violence is the last refuge of the incompetent - Salvor Hardin)
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To: Nervous Tick; Vendome; TSgt
>> Off-shoring redundant technology and business processes is NOT innovation, it’s simply getting easy work done cheap.

That's not exactly what I was focusing on, but ...

That’s true, of course. However, believe at your own peril that Chinese and Indian and Eastern European and Russian folks can’t learn and think and design and innovate for themselves.

Correct. Knowledge (as opposed to a formal US college education) is cheap now-a-days with easy internet access. Obama and all his communist university buddies ought to discredit huge portions of the US educational system for a long time. I'm not going to hold my breath, but it should happen.

At least where I work, the work is not easy and requires real skills. I have not met a single peer coworker whom I would not consider bright. Rough on the edges, needs more training - sometimes yes, but not bright enough to do it, no. Be careful dissing that which you do not know.

29 posted on 05/20/2010 10:16:48 AM PDT by altair (Violence is the last refuge of the incompetent - Salvor Hardin)
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To: altair

Hmmm.....Not sure what you mean by “be careful dissing what you do not know”.

I am here in the valley and have been for twenty years. I run an ISP, a hosted telephony business, a construction company and am starting another company next week.

What Might I not know about business and the current climate?


30 posted on 05/20/2010 10:25:03 AM PDT by Vendome (Don't take life so seriously... You'll never live through it.)
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To: altair
Be careful dissing that which you do not know.

FRiend, I've worked with Indian IT types for years. While they might be book smart, many lack communication skills and the ability to see beyond their current domain of work, i.e. big picture. They cannot connect the dots and many often lack simple common sense.

I believe this is a result of cultural barriers and their country's lack of historical business experience.

Cheap Work <> Innovation
31 posted on 05/20/2010 10:32:41 AM PDT by TSgt (We will always be prepared, so we may always be free. - Ronald Reagan)
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To: altair; Abathar; Abcdefg; Abram; Abundy; akatel; albertp; AlexandriaDuke; Alexander Rubin; ...
Executive summary: What part of getting government out business and letting business do what it does best doesn't anyone understand?



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32 posted on 05/20/2010 7:07:57 PM PDT by bamahead (Few men desire liberty; most men wish only for a just master. -- Sallust)
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To: altair

Two thumbs up on the vanity!!


33 posted on 05/20/2010 7:08:37 PM PDT by bamahead (Few men desire liberty; most men wish only for a just master. -- Sallust)
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To: altair
At the company I work for, outsourcing to india hasn't really worked out well. Of course, the PHBs won't admit it, but it has driven our costs up considerably and slowed down development, and to top it off, the quality of the "finished" product is not up to snuff.

Sure, Indian programmers are cheaper, but when it takes 10 to 20 "programmers" to equal one of our guys here, the payoff just isn't there. Overall, I haven't been impressed with offshoring.

On a personal level, if I call a company for something and get routed to India, I'm a hell of a lot less likely to continue to do business with them.

34 posted on 05/21/2010 8:28:48 AM PDT by zeugma (Waco taught me everything I needed to know about the character of the U.S. Government.)
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To: RobRoy
The thing is, some people do not understand what is being said and just “rubber stamp” everything they think they are hearing. It then comes back to bite us in the end.

I've discovered you always have to get them to say what you want them to do in their own words, when they start with "yeah, yeah, yeah" routine. It's obviously a cultural thing. Many just plain will not admit that they don't understand what is being discussed.



35 posted on 05/21/2010 8:32:13 AM PDT by zeugma (Waco taught me everything I needed to know about the character of the U.S. Government.)
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To: zeugma
Sure, Indian programmers are cheaper, but when it takes 10 to 20 "programmers" to equal one of our guys here, the payoff just isn't there. Overall, I haven't been impressed with offshoring.

It varies by individual.

If you're outsourcing by collaboration, then you also have to take into the time zone differences. Most business people cannot deal with that. Email is the killer app in that case, not Skype, IRC, WebEx, etc. that requires synchronization at both ends.

I don't particularly want to assist in outsourcing, so I'll stop here. My only intent was to explain what is going on.

36 posted on 05/21/2010 8:53:31 AM PDT by altair (Violence is the last refuge of the incompetent - Salvor Hardin)
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To: zeugma
I've discovered you always have to get them to say what you want them to do in their own words, when they start with "yeah, yeah, yeah" routine.

With anyone actually. Mrs. Altair is a Filipina and I've learned from her that I can usually never trust a "yeah, yeah, yeah" response. India and Philippines have English as an official language, that doesn't necessarily mean a whole lot day-to-day.

37 posted on 05/21/2010 8:57:55 AM PDT by altair (Violence is the last refuge of the incompetent - Salvor Hardin)
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To: Paco

The US manufacturing industry has destroyed itself by outsourcing manufacturing to realize short-term profits


Although the U.S. manufacturing industry has outsourced many products, the manufacturing sector in our country still produces a very large amount of products. We employ far fewer people than years ago but productivity and output remain fairly stable.


38 posted on 05/21/2010 8:59:21 AM PDT by cornfedcowboy (Trust in God, but empty the clip.)
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To: zeugma

it depends on who you outsource to and whether it’s outsourcing or offshoring. If you have your own firm set up in India then you pay for the best guys. If you outsource for lower bucks, you get code monkeys


39 posted on 05/21/2010 5:11:44 PM PDT by Cronos (Origen(200AD)"The Church received from theApostles the tradition of giving Baptism even to infants")
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To: TSgt
it's simply getting easy work done cheap.

Eh. The PHBs don't really understand what's the cheap part.

I work in telecomm R&D and the current effort has about 10 long term USA engineers being thrown into a late project being worked by a group of Indian contractors. A couple are good, but most are DeVry Institute quality coders.

The PHBs believed the contracting house's siren song of quality, but it was a mirage. And they've already lost any price advantage they might have had as the total staff is more than I think needed if they'd staffed initially with USA employees who know the industry and the kind of quality and robustness the company expects, and how to get there. These guys were trained to Microsoft levels of quality ... just reboot once a day.

40 posted on 05/25/2010 5:02:39 AM PDT by slowhandluke (It's hard to be cynical enough in this age.)
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