To start up here, companies hire over there

[Peter1x9]

http://www.usatoday.com/money/economy/employment/2005-02-10-offshore-usat_x.htm

By Jim Hopkins, USA TODAY


Nearly 40% of start-ups in a new USA TODAY study employ engineers, marketers, analysts and others in jobs created in India and other nations. Russell Hancock, CEO of an influential group charting Silicon Valley's future, called the findings "amazing."

The study found that many U.S. start-ups, speeding the pace of globalization, now bypass the USA for nations where customers and cheap labor are plentiful.

The rise of these "micro-multinationals" is worrisome because start-ups generate most tech jobs. Their role is now more vital as mature tech firms consolidate and export work, cutting U.S. employment. Indeed, tech's share of all U.S. jobs fell last year to 4.4% from a record 5% in 2001. Tech's job share is now near a level last seen in 1992.

[Robert Oak]

1. actually wrote Kerry campaign about this...it's MAJOR problem

it's the venture capitalists, they need to be reined in...

literally they FORCE, FORCE a startup who needs funding to
hire a team overseas whether it makes sense or not.

I've talked with some people and they aren't happy about it and often
it's actually a huge drag on their development capabilities...
but they can't get a dime unless they agree to staff half of their
R&D engineering team in India or wherever.

In other words, you can't obtain funding for your startup unless
you outsource, no matter what makes sense for your engineering model or what makes sense on any level. It's disgusting and major arm twisting by venture capitalists.

I find this insane and about as bad as the other "criteria" to obtain
1st round VC funding in the late 90's, such as "who do you know?" or
placing keyword "broadband" in your business plan.

When are these VC's going to get called out? it's their lack of common sense that enabled the dot con era and now it's their insanity enabling this ....which not only slows dramatically a startups ability to
make that cutting edge innovation due to trying to work over long distances, but also automatically straddles a new company across national boundaries...

and adds to weakening the US economy!