Outsourcing Reaches Its Tipping Point

[OhioChick]

Jan 30, 2007 at 03:50 PM ET

Author Malcolm Gladwell says a tipping point occurs when a phenomenon starts to multiply exponentially, as though it were an infectious virus. Outsourcing's tipping point occurred this week when Accenture announced it would have more workers in India than in the United States by August.

Speaking Monday to reporters in Bangalore, Accenture CEO William Green said the consulting and outsourcing company will add 8,000 workers in India this year, bringing its total head count in the country to 35,000. That will surpass the 30,000 workers employed in Accenture's U.S. operations.

"Though we continue to hire in other locations, too, the recruitment will be the highest in the subcontinent, as India has become a critical part of the Accenture world and integral to our growth strategy," said Green, according to text of his remarks released by Accenture India.

With those words, Green opened the floodgates. The steady stream that has been carrying some U.S. tech jobs to India is poised to become a torrent. Why? Because until now no CEO of a major American company has gone on the record to say that he plans to make India his main base of operations.

http://www.informationweek.com/blog/main/archives/2007/01/outsourcing_rea.html

[lapfog_1]

1. When oh when will it finally dawn on these stupid corporate executives

most of them white middle aged men... that THEIR JOBS can be outsourced too.

Once most of the workers are in India, why isn't the VP of Human Resources in India?
And then the VP of finance (since all of accounting is in India).
And then the VP in Engineering (since all of the tech types and software writers are in India).
And then the VP of Operations and Customer Support...

And then the President and CEO (since all the VPs are there)

except for the VP of sales... but soon HE will be there as well, just as soon as there aren't any more US customers.

All of them making a hell of a lot less than their former counterparts here in the US. Which is good for the bottom line... in the short term.

[wakeme2008]

3. This is happening at Cisco...

Something like 10% of their upper managers HAVE to move to India. :grr:

[acmavm]

2. And how can American CEOs in all good conscience (ha!) do this to the

American people? At the same time that they're leeching all that is good out of this country? And getting tax breaks at the same time?

These are no longer 'American' companies and should be hit with an embargo tax for goods and a new type of tax for companies that provide services.

There is more than one way to undermine your country. Extreme greed is just as bad as what bush** is doing.

[cassiepriam]

4. At some point, when the income levels rise in these countries, and ours is lowered,

will the jobs come back to the US?

Seems like that will be the end result. Our standard of living
will go down, and we are helping the rest of the world's go up?
In essence a redistribution of the world's wealth?

And how will our middle class survive all of this?
Any profits only go to the robber barons.

[HereSince1628]

5. Didn't you hear Bush? It'll all be better when the playing field is level

Which is to say when US labor costs and environemental regulation look like those of China and India.

And *'s trying to help. He's doing his best to drive out of existance that overpaid, underworked middle class.

[NJCher]

6. Global Unions

I heard something about this on NPR last night--that in formation now are global unions to counteract the power that these large companies have over the worker.

The idea is to have be some basic standards throughout the world to counteract this race to the bottom with wages and benefits for workers.



Cher

[Union Thug]

7. BINGO! The IWW has been promoting this for a hundred years...

FOR THE ONE BIG UNION!

[Larkspur]

8. Hillary must be happy. She supports sending high paying American tech jobs to India

From 2005 Asia times Hillary Clinton woos Inda

[OhioChick]

9. You are correct.

Hillary Clinton woos India

http://www.atimes.com/atimes/South_Asia/GC01Df03.html

Hillary Clinton stands up for Tatas, outsourcing

http://timesofindia.indiatimes.com/articleshow/538674.cms