Outsourcing

[Mairead]

[BiggJawn]

1. But I heard some "Business Leader" in Chicago say yesterday...

"The name 'Outsourcing' has taken on a 'toxic' meaning, but I think in the long run we will PROFIT (emp. mine) more than we lose..."

Yasssss, it's all about the bottom line, ain't it? Guess there's enough CEO's that can buy each other's stuff and keep them afloat while the rest of us fight amongst ourselves for cans of Whiskas....

[gander2112]

2. Ouch...

Too close to the truth.

In general, shifts in the economy lead to more prosperity, and in general a better way of life, in this iteration, it is very difficult to make that leap of faith.

An example often used is the horse buggy builders around the turn of the 20th century. The automobile's arrival caused a significant downward pressure on their core business. Many folded, a few transitioned into automobile coach design.

However, in all these prior examples, there has been a path of transition (albeit not always obvious) for the displaced masses that were effected.

This time however, that path is just not there. There are no magic jobs that are waiting to absorb the displaced workers.

I worked for a company that was downsizing its US workforce, while aggressively using third party vendors in India to do much of the skilled labor that was being laid off in the US. The company ironically was boasting about how this was great for the bottom line during group meetings. My peers and I would stare at each other a gasp. All of us had known good, capable people who were outsourced.

Perhaps in 20 years, looking back, there will have been a recovery, a new vector for these white collar workers to migrate to. For the life of me, I can not see a new segment to take up the displaced workers.

Geoff

[Virginian]

4. It doesn't help when education is cheaper in India.

Oracle corporation has a segment of its business called Oracle Education which offers specific training in Oracle software.

In India they charge $50 a day, in the US, they charge $500 a day. Classes last from one day to one week, depending on the subject. Multiple courses are required to become proficient in the technical aspects of their software. This is the same instruction. The only difference is the location.

Unlike the drugs sold to Canada, this commodity (training by Oracle Corp) cannot be reimported at a discount.

[Commie Pinko Dirtbag]

3. Don't worry, those jobs will eventually come back...

...when the US minimum wage becomes just enough to buy 15 cups of ramen noodles a month, just like in India and China.