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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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No new news except now the major outlets are starting to run with it.
1 posted on 08/03/2003 7:42:08 AM PDT by RockyMtnMan
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To: RockyMtnMan
No new news except now the major outlets are starting to run with it.

I think Bush will "get it" now.

2 posted on 08/03/2003 7:45:03 AM PDT by Lazamataz (PROUDLY POSTING WITHOUT READING THE ARTICLE SINCE 1999!)
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To: Lazamataz
This is definately a political land mine and the Republicans had better get their game plan together. This issue has the power to sway public opinion more than any other. This about middle America's pocket book now and the threat of losing a job to offshoring will make everyone question their job security.
3 posted on 08/03/2003 7:48:40 AM PDT by RockyMtnMan
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To: Lazamataz
I also noticed they are doing a week long special on this very issue. Since ABC is a big-time left leaning outlet I'll be curious to see how they "spin" it.
4 posted on 08/03/2003 7:50:33 AM PDT by RockyMtnMan
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To: RockyMtnMan
"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.

And the checks in the mail.

5 posted on 08/03/2003 7:57:19 AM PDT by searchandrecovery (America will not exist in 25 years.)
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To: RockyMtnMan; Lazamataz
You all may not find this applicable to the conversation, but I think it is.

Recently a supermarket chain in my area has introduced self-serve checkout counters. Basically there are 4 self-serve machines and an island for one cashier. He/she is there to punch in the produce price and check ID's for alcohol or handle any problems a customer may have using the machine. I like the self-serve machines. They seem to be less time consuming and make the checkout process faster.

Now the supermarket has effectively outsourced three cashier positions to the machines.

Do you two think this practice should be abolished?

6 posted on 08/03/2003 7:58:54 AM PDT by Dane
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To: A. Pole; Willie Green; samuel_adams_us
More offshore ping
7 posted on 08/03/2003 7:58:55 AM PDT by RockyMtnMan
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To: RockyMtnMan
This is of course a dual-edged problem: What isn't sent overseas is done by H1-B workers, whom I call neo-indentured servants because of their low pay and difficulty in changing jobs. The proliferation of these can be fixed, congress willing, but - at present - I don't see an immediate solution to the offshore problem.
It's the supply-demand curve at work, I guess; I'm lucky I have high-tech sales experience. The ability to get face-to-face and talk nuts and bolts with a prospect is one thing that can't be exported, at least not yet.
Now if I can just find a position that doesn't say "local candidates only" as a disclaimer.
8 posted on 08/03/2003 7:59:06 AM PDT by Marauder
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To: RockyMtnMan
Adding insult to injury, Emmons and the others had to train their replacements.

As a pretty hardcore free market capitalist this makes me sick.

They have a right to hire and fire whoever they like, but using people in this fashion is immoral and our government issuing visas to these Indians by manipuplating immigration laws to placate interests is infuriating.

People are starting to get pissed off. Pissed off techies can become problematic.

I love free business environment but I don't like watching people get f***ed. It's practices such as this that bring business regulations and enemies. Unions were borne out of this type of greed.

9 posted on 08/03/2003 8:02:16 AM PDT by AAABEST
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To: Dane
Checkers pay no taxes and probably only have a high school education (or are retirees). They also have little to zero disposable income and invest hardly anything. I would not compare the net loss to an engineer that probably pays more in taxes than they make all year and puts money into a 401k account.
10 posted on 08/03/2003 8:02:26 AM PDT by RockyMtnMan
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To: Dane
> I like the self-serve machines. They seem to be less time consuming and make the checkout process faster.

Shoplifters like them a lot too. That is why in these self serve lanes they have to station people to watch you to make sure you ring up your own purchases. So much for cost savings.

11 posted on 08/03/2003 8:04:45 AM PDT by Dialup Llama
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To: RockyMtnMan
"This is definately a political land mine and the Republicans had better get their game plan together."
Couldn't agree more - if they are working against me I will be against them. Bush has done a great job in Iraq, but not much else to make me feel secure against threats from Korea, China, Mexican invaders. He is encouraging inflation with high deficits to try to counter deflation - risky business. Even though the Democrat candidtes are weak, there could be a lot of Republican protest votes against Bush that could sway things the Dems way.
12 posted on 08/03/2003 8:05:02 AM PDT by afz400
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To: Lazamataz
I think Bush will "get it" now.

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

What you will hear from Bush is some meaningless evasive generalities.

13 posted on 08/03/2003 8:08:21 AM PDT by RLK
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To: RockyMtnMan
Checkers pay no taxes and probably only have a high school education (or are retirees). They also have little to zero disposable income and invest hardly anything. I would not compare the net loss to an engineer that probably pays more in taxes than they make all year and puts money into a 401k account.

They actually do pay payroll taxes, but I get your gist, there should only protection for the guilded IT worker, even though technology and globalization is effecting everybody for good(savings for the companies) and bad(some IT workers losing there jobs).

BTW, if you were the owner of the company, wouldn't you try to cut the costs of your company, such as many people try to get the most bang out there buck, when they comparison shop.

14 posted on 08/03/2003 8:08:49 AM PDT by Dane
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To: harpseal; A. Pole
As already pointed-out, nothing new, but major news outlet ping.
15 posted on 08/03/2003 8:08:57 AM PDT by LibertyAndJusticeForAll
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To: Dane
Now the supermarket has effectively outsourced three cashier positions to the machines.

Do you two think this practice should be abolished?

I just love the self-service checkout.

It beats dealing with a teenager with an attitude.

16 posted on 08/03/2003 8:08:57 AM PDT by HIDEK6
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To: Dane
Do you two think this practice should be abolished?

No.

Nor do I say that offshore outsourcing should be abolished.

Now, I have a question for you, my high-school chum: If almost all the jobs related to manufacturing are nearly wiped-out as a profession in America; and if we are offshoring (and thusly not doing) accounting, engineering, software, call-center work, reading and interpreting medical data, financial planning, and soon enough medical doctor and lawyering work; and if immigrants are doing transportation, agriculture, and the remaining other low-tech work; and if robotics will be completely eliminating 90% of retail sales jobs with RFID technology and self-checkout lanes.....

.....what will we be doing?

17 posted on 08/03/2003 8:09:03 AM PDT by Lazamataz (PROUDLY POSTING WITHOUT READING THE ARTICLE SINCE 1999!)
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To: afz400
Even though the Democrat candidtes are weak, there could be a lot of Republican protest votes against Bush that could sway things the Dems way.

And a Democrat president will do nothing about offshoring, because there's nothing he can do.

So, you've accomplished nothing.

18 posted on 08/03/2003 8:10:34 AM PDT by sinkspur ("Messina, Brad! Messina!" George C. Scott as "PATTON.")
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To: AAABEST
I agree, the business community will do one of two things.

A) Slow down offshoring until the heat is gone and then incrementally reintroduce it.

B) Continue at the same pace and risk government intervention.

If B happens and the government doesn't respond (or appear to respond) then the Republicans will earn their big business label.

I voted for Bush and support his foreign policy decisions but his domestic initiatives have been too left leaning for me (excepting the tax cuts).
19 posted on 08/03/2003 8:10:46 AM PDT by RockyMtnMan
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To: Dialup Llama
Shoplifters like them a lot too. That is why in these self serve lanes they have to station people to watch you to make sure you ring up your own purchases. So much for cost savings.

RFID will obviate the need for station watchers.

20 posted on 08/03/2003 8:10:52 AM PDT by Lazamataz (PROUDLY POSTING WITHOUT READING THE ARTICLE SINCE 1999!)
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