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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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To: A. Pole
..Normal people prefer to live in socialist Sweden than in San Salvador..

Oh, I agree; and, regretfully, it seems those are going to be our two choices.

261 posted on 08/03/2003 12:03:09 PM PDT by MrNatural (..".You want the truth?!"...)
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To: harpseal
Don't worry,the Somali Bantu warriors that Bush is importing to USA will take up the slack. After all, they don't know how to use a toilet or turn a doorknob.
262 posted on 08/03/2003 12:05:10 PM PDT by hillyes
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To: Lazamataz
Leaving aside for a second that I simply do not believe you were alive in the 1970's and early 1980's, this differs greatly from the loss of blue collar jobs then. See, at that time we were told that we'd be able to get white collar jobs, even the lesser-skilled people.

I remember those days in Pittsburgh too, I'm 37, so I remember when a lot of the steel mills closed too. A lot of good people were hurt although there have been some that were able to move on. This is different now because the jobs they could have moved on to are disappearing too.
263 posted on 08/03/2003 12:06:13 PM PDT by Nowhere Man ("Laws are the spider webs through which the big bugs fly past and the little ones get caught.")
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To: Lazamataz
Agamemnon
by James Hunter
Agamemnon was the son of Atreus and the brother of Menelaus. He was the king of either Mycenae (in Homer) or of Argos (in some later accounts), and was the leader of the Greek forces during the Trojan War. He married Clytemnestra and had several children by her, including Orestes, Electra, and Iphigenia.

folklore/greek_heroic/th_agamemnon.jpg

When the Greeks sailed for Troy, their fleet was trapped by unfavorable winds at Aulis. The seer Calchas revealed that their misfortune was due to Agamemnon, who had boasted that he equalled Artemis in hunting; the winds would only change if Agamemnon's daughter Iphigenia was sacrificed. Agamemnon reluctantly agreed to the sacrifice, but Artemis herself whisked Iphigenia away from the altar and substituted a deer in her place.

During the seige of Troy, Agamemnon offended the greatest of the Greek warriors, Achilles, when he took the girl Briseis from him. Achilles' anger with Agamemnon furnished the mainspring of the plot in the Iliad. After the sack of Troy, Agamemnon acquired Cassandra, the daughter of King Priam, as his concubine, and took her home with him to Greece.

Agamemnon had an unhappy homecoming. He was either blown off course and landed in the country of Aegisthos, or he came home to his own land to find Aegisthus waiting for him. In either case, Aegisthus had become the lover of Clytemnestra, and the two together murdered Agamemnon and Cassandra shortly after their arrival. Aegisthus and Clytemnestra then ruled Agamemnon's kingdom, but were eventually killed by Agamemnon's son, Orestes (or by Orestes and Electra in some accounts). The homecoming of Agamemnon and its aftermath were favorite subjects for Greek tragedy.


264 posted on 08/03/2003 12:12:13 PM PDT by sarcasm (Tancredo 2004)
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To: RnMomof7
..from the beginning of the mass export of American jobs I wondered who would be the tax base.Who will pay for the schools? ... Who will pay the for
the bloated federal socialist government ? ..who (will) buy cars, insurance, homes , appliances What will happen to the longshore men and sales men
and truckers?...Who will need the maid to make up the bed at "Motel 8", when no one has the money to travel? ..Who will tip the waitress at that
wonderful Italian restaurant if no one can afford to eat out?

Exactly. It's the interdependant middle class that is being attacked and weakened by this trend. We're all going to lose; not just the people who've lost their jobs this week.

265 posted on 08/03/2003 12:13:52 PM PDT by MrNatural (..".You want the truth?!"...)
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To: RnMomof7
Maybe if you had Agamemnon's degrees you would know enough not to ask such common sense questions as these. I am sure that Agamemnon has all of the answers.
266 posted on 08/03/2003 12:15:27 PM PDT by AndyJackson
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To: Lazamataz
Heh. It's funny to me that you would lump me in with the doom and gloomers

A "doom and gloomer" is now a generalized slam at anyone who dares question, criticize or makes a negative comment about problems in the economy, finance, jobs, etc. There is an obvious effort going on at promoting group think. I know that you aren't a doom and gloomer but that is the label you are going to be stuck with unless you either keep your mouth shut about your concerns or cheerlead party politics.

Richard W.

267 posted on 08/03/2003 12:16:46 PM PDT by arete (Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
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To: arete
You must be one of those malcontents I keep seeing mentioned.
268 posted on 08/03/2003 12:20:20 PM PDT by sarcasm (Tancredo 2004)
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To: arete
I wanna be a doom and gloomer! Is there a secret handshake or a decoder ring?
269 posted on 08/03/2003 12:20:47 PM PDT by Doohickey
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To: Agamemnon
You have taken my statement out of context and are insinuating that engineers have a welfare mentality.
The original context of my statement was that a cashier requires minimal training in the first place, the retraining options to an equal or better paying job are numerous. The same can not be said for engineers. That was the context and you certainly misrepresented what I wrote.

Many years of education by this country were spent to build its engineering expertise. This is an expensive and valuable talent pool. It is a necessary labor for technology, and technology is what builds today's superpower. By replacing American engineers with foreigners, we are leaving ourselves vulnerable and dependent. This is not wise. Already there are fewer engineering students, so the future American engineering pool is beginning to shrink.
Maybe you want to live in a nation that is dependent for technology on foreign nations, even hostile ones, but most Americans do not.
Lou Dobbs expressed it pretty well recently:
"We can no longer sustain a free-trade policy that does not insist on reciprocal, mutual benefits to both our economy and those of our trading partners. Globalization at any price is proving to be too high a price for this nation to pay."
http://www.nydailynews.com/news/col/story/104100p-94205c.html
270 posted on 08/03/2003 12:21:19 PM PDT by LibertyAndJusticeForAll
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To: arete
And you should know; I've seen the flack you get for expressing concerns about certain economic matters.

As withany loyal bushbot, I normally don't agree with your takes, but I always wonder at the ferocity
of some of your detractors.

271 posted on 08/03/2003 12:23:47 PM PDT by MrNatural (..".You want the truth?!"...)
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To: Agamemnon
You are merely envious of CEOs because board members value what they do so much to bring a vision to a bunch of engineers whose efforts would be scattered in a thousand different, non-business related directions otherwise.

You flatter yourself too much. Also, I am not much impressed with a self-employed self-appointed CEO who only makes 6 figures. When you get it up to around 10 give me a call.

272 posted on 08/03/2003 12:24:36 PM PDT by AndyJackson
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To: sarcasm
You must be one of those malcontents I keep seeing mentioned.

I've recently moved up to miscreant. Next month, I hope to be a full fledged "enemy of the state". :-)

Richard W.

273 posted on 08/03/2003 12:25:06 PM PDT by arete (Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
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To: arete
Wow - I'm only a troll.
274 posted on 08/03/2003 12:30:06 PM PDT by sarcasm (Tancredo 2004)
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To: arete
I've recently moved up to miscreant. Next month, I hope to be a full fledged "enemy of the state"..

Wait; I thought it was 'miscreant', then 'troublemaker', and then 'enemy of the state'.
Are you planning to skip a grade? :)

275 posted on 08/03/2003 12:32:17 PM PDT by MrNatural (..".You want the truth?!"...)
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To: arete
I've recently moved up to miscreant. Next month, I hope to be a full fledged "enemy of the state". :-)

Way to go, arete, way to go!!

BTW, the way this "outsourcing" thing is going, it looks as if the Demos have found something that might stick.

Read somewhere (Time mag??) that 4 out of 5 Corporations contemplating doing this "don't give a D#mn" about "public backlash."

Looks like a hobby horse made to order for Demos, and the fat is being put into the fire by AOL-TW.

276 posted on 08/03/2003 12:34:27 PM PDT by Lael (It is time to make "OUTSOURCING" the litmus test!!)
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To: MrNatural
Troublemaking is being offshored.
277 posted on 08/03/2003 12:37:50 PM PDT by Doohickey
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To: Agamemnon
You evidence more Libertarian-Democrat jealousy than most. You suffer from "Shadenfreud-itis" -- an unrequited misery exhibited by those awaiting the failings of someone else vainly hoping that that will make you feel better about your un-accomplisheed sorry 17-year existence working for "the man."

Sounds to me as if you have experienced those particular personality problems much more than Laz ever has. Laz has always had a great sense of humor and has been unafraid to express his agreement or disagreement with issues. You, on the other hand, sound very argry and unhappy.

Richard W.

278 posted on 08/03/2003 12:38:52 PM PDT by arete (Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
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To: AAABEST
It's practices such as this that bring business regulations and enemies. Unions were borne out of this type of greed.

It is more complex than mere greed. People buy the cheapest product that has the best performance for the price. Modern technology makes it easier to use the cheapest labor in this equation. Why do think that most every product you now see has a label on it where the made in line contains something other than USA?

About the only thing that we have as an asset that remains unchallenged by other countries is our agriculture, but you see it maimed by environmental regulation, consolidation, conversion, etc. How much arable land have you seen converted into subdivisions, malls and the like? We have already "destroyed" many assets by environmental controls. Etc, etc. Greed may be involved, but I think we have imposed this problem on ourselves. We do not need any more Democrats screwing things up with Republican help. And I am a Republican. Get our judges confirmed. The ones that could not be considered activists. Get rid of unnecessary taxation, get rid of unnecessary environmental rules, get rid of unnecessary minimum wages, hiring rules, quit intruding into the mechanisms of business and they will be less likely to go elsewhere for workers.

279 posted on 08/03/2003 12:42:03 PM PDT by AndrewC
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To: MrNatural
As withany loyal bushbot, I normally don't agree with your takes, but I always wonder at the ferocity of some of your detractors.

Yeah, party politics sure does close an awful lot of minds while also bringing out the worst in many people. I guess the attacks go with the territory.

Richard W.

280 posted on 08/03/2003 12:52:43 PM PDT by arete (Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
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