Outsourcing roars back to India, China

[ChromeFoundry]

Source: Economic Times of India

25 Jan 2010, 1907 hrs IST, IANS

WASHINGTON: Outsourcing has roared back to life places like China, the Philippines, Costa Rica and even Romania, according to a new study.

"After fizzling out over the past couple years as companies simply slashed jobs rather than move them, outsourcing is back in vogue," Forbes.com reported Monday citing a new PricewaterhouseCoopers study.

"Cost is still the major factor," Charles Aird, managing director for shared services practices at PWC, was quoted as saying. "But people are also looking for greater efficiency, better quality and access to talent."

The list of what's being outsourced is growing, too, with much of the recent growth being driven by competitors playing catch-up to market leaders that slashed their costs prior to the downturn.



Read more: http://economictimes.indiatimes.com/articleshow/5499432.cms

[RockaFowler]

1. My company just did it

And they sent accounting jobs to the Phillipines and India. I don't get it at all.

[Captain Hilts]

2. It's NAFTA's fault! Ooops. Never mind....My RCN tech help was in the Philippines. nt

[old mark]

3. Companies have been doing this for 30 years or so. They don't care about the US, or

any other country, so long as they can make more profit.
Lower wages, fewer perks and benefits, little safety or other legal regulation - what's not for them to love?

Add: the economy really must be improving, but the US workers will be the last ones to see any of it.


mark

[apnu]

5. The funny irony here is outsourcing, in the end, hurts those companies.

Much of the global economy is underpinned by American consumer spending. When we stop consuming things get bad. So by outsourcing and putting jobs elsewhere, Americans can consume less and it puts the whole economic fabric of the world out of whack.

There are two ways to address this, get Americans cash to spend and get us interested in spending (Bush did this with the free credit thing post 9/11) or get another super economy to consume all the production of the world. China is currently vying for this power. They want to be the global consumption economy.

But neither of these these thing address the real issue: to "consume" one must have money, take the jobs away from people and they cannot consume. This is the basic problem with consumption based economies that these so-called "giants of industry" do not understand. They're so deep in their own bullshit they can't see the end of their own noses.

[Arctic Dave]

10. +1

[endless october]

4. if we don't stop this, the economy will continue to suck.

it's a clear choice. Americans without jobs can't participate in the economy.

[Jefferson23]

6. Well Obama, what say you?

[OhioChick]

8. *Crickets* n/t

[Divine Discontent]

7. we all know the lowest quality tech support, merchandise, and safety regulations are located

OUTSIDE of the USA.

Shame on the companies that move jobs to these locales where they abuse workers, pay little and the quality of what they get is akin to asking a 15 year old here in the USA to answer your product safety concerns!


We can do our part to look at the label and try to find Made In the USA labels.

Here some for net shoppers - http://www.madeinusa.org/nav.cgi?data/home

[Mithreal]

11. +1

[Luciferous]

22. Thanks for the link

[natetk]

9. I hate outsourcing.

People buy foreign made stuff because it's cheaper, which helps create more outsourced manufactured jobs. What sucks is that most jobs in the US are now minimum paying jobs with no benefits, so people cannot even afford to buy American made stuff anymore if they have a family to support. It seems like a lose lose situation now days. They really do need to come up with something that will entice business owners to make their stuff here instead of over there. Anyways, I don't think we are going to see anything good come about for a long time. I'm a republican, but I am sick of both parties. They both should just join together and change their names to the Lobbyist Party, since that is what they both are. They are only in it for their own selves, and they could care less about the people suffering from their failed policies.

[proudohioan]

16. Just out of curiousity....

You state that you are Republican.... Why in the world would you want to participate in a forum entitled "Democratic Underground"?

Not bashing you in the least, I'm just curious.

BTW; I agree totally with your suggestion to call them the Lobbyist Party! I have had about enough of both parties myself.

t.

[natetk]

18. Because both parties have values that I like

If both parties would do what they claim to be I wouldn't have no problems with either one. I choose republican based on where most of my beliefs fall(if they followed them), but most of them now days are ignoring the American people. They are too much in love with the money, and they let corporates get away with destroying American jobs. I follow democraticunderground so that I can get a view from both sides and then decide for myself what I believe.

[proudohioan]

24. Well good for you...

And welcome to DU.

:toast:

[Quantess]

17. Are you sure you're a republican?

You sound like you could possibly fit in here. :hi:

Anyway, NAFTA, CAFTA, GATT deserve the lion's share of the blame.

[mac56]

19. They're the cheap labor conservatives!

Welcome to DU.

[OhioChick]

20. Welcome to DU!

:hi:

[Luciferous]

23. Welcome to DU!

Lobbyist Party pretty much sums it up.

[MoonlitwingsX]

12. IT related jobs are one of those jobs leaving

Hearing the news about outsourcing when you're in school, taking up debt to better your future in a career with a Computer Science degree is quite hard on us students. Sometimes I ask myself nowadays, "What's the point?" Its not like I'm asking to be paid a fortune right out of school, either!

Corporate America is truly an ugly, ugly Juggernaut of a beast.

[natetk]

14. Computer Science

Yea I am going for my computer science degree as well. I am in a lot of debt because of it, and I am so close to just trying to become an electrician instead. I am going to get my degree, but it is frustrating to know that I might not be able to do something that I love because lack of entry level jobs in the field.

[Nay]

21. My son's an electrician, and he's out of work, too. Construction is in

the toilet. This is not to say that his skills aren't valuable and will be valuable to him in the future, but he's on unemployment now. He also is a huge computer nerd but was not able to get a job in IT because it was all getting outsourced.

[avaistheone1]

13. The STIMULUS this country needs is to stop the outsourcing.

Will Obama and our Dems step up to the plate?


Stop the bleeding.

[Joanne98]

15. Traitors!

[Mari333]

25. ditto!!

[wickerwoman]

26. Outsourcing only slowed because oil prices were so high

that manufacturing overseas and importing was no longer cost effective.

When oil prices spike again, what happens? Clearly none of these CEOs cares. They'll be long gone.

[Linux Cowboy]

27. I miss Bubba

Yes it is. I'm floundering too. after 32 years of voting solid liberal Democrat I think I should try voting 100% GOP. Maybe yes=no and no=yes.

[DainBramaged]

28. We don't call President Clinton Bubba around here pal.....

[Johnny Harpo]

29. 'Outsourcing' vs. 'Off-shoring'...There Is A Difference For The US

I have been in I.T. for a long time and have lost so many jobs to 'Outsourcing' and 'Off-shoring' that I have lost count.

But there is an important difference.

'Outsourcing' is when 'US' Company 'A' hires 'US' Company 'B' to do the work.

This happens often in IT and other industries and is not quite as bad as Off-shoring because it usually means US citizens will continue to be employed.

'Off-shoring' is when US Company A hires another company, from another country, who then sends the work outside of the US to be completed.

Lets call 'Off-shoring' what it really is...Sending US jobs to India!...Where the work is done for far less labor costs then here in the US.

While 'Off-shoring' may save money in the short term, the down sides of Time Difference - Culture Difference - Language Barrier all usually combine to produce an inferior product.

Thus the money saved in labor costs is then spent in product re-work.

Off-shoring is a 'Tecnological Dirty Bomb' waitng to explode and is far worse then any worries we may have about a suitcase Nuke.

All it would take is a few mis-placed lines of computer code to bring many US companies to theire knees.

And one wonders where the 'loyalty' of the 'Off-shoring' firms really lies...to their clients or to their country?

The US is hemmoraging jobs and 'Off-shoring' places technological WMD's in the hands of those who do not have the interest of the US or its citizens at heart.

So we must ask our President: If jobs are the number one priority..

When are you really going to penalize companys that send our jobs over-seas?..

When are you going to reduce the number of H1B visas and stem the tide of those who would come into our country and take our jobs?..

[OhioChick]

30. Welcome to DU!

:hi:

[DainBramaged]

31. Welcome to the wild wonderful world of DU.........

:hi:

[Johnny Harpo]

32. Actually I've been here for a while..just don't post much

n/t