Offshore Outsourcing Threatens Offshore Outsourcing

theodp writes "India offshore tech support companies may soon face job losses as U.S. companies such as IBM, Intel, Hewlett-Packard, Oracle and PeopleSoft explore countries with even cheaper sources of technical labor, including Romania, Russia, Hungary, the Czech Republic, the Philippines, Singapore, Thailand and Vietnam. Concerned that outsourcing might be outsourced from India in the near future, a Bangalore call center owner said 'It's hard to know where it will all end. Is there a country where people will work for free?'" There's a Newsforge story about the same subject.

Comments

Southern tax incentives

[nightsweat]

This is very similar to what happened to a lot of towns in the South that offered big incentives to companies to relocate in their cities from the big cities up North. They were very successful by offering lower taxes, lower wages, and fewer regulatory burdens.

Then a few years later, along comes NAFTA and now Mexico offers lower taxes, lower wages, and fewer regulatory burdens. So the companies pick up and move south of the Rio Grande, and these Southern cities are shocked that these companies have no loyalty to their new Southern US homes.

In a race to the bottom, no one wins but the few at the top.

i am apu's screaming child

[macshune]

I am Apu's screaming child who cannot eat because someone from a central-asian ex-soviet "republic" can do my job for 5 cents an hour cheaper.

A firm's goal is to maximize profit. This cannot be done at the most efficient levels if money is paid with regard to social justice. Yes, we all have different assumptions on what social justice is. Regardless, I don't think that anyone should have to work 12 hours a day building many items that are worth more than a year's wage only to come home to high infant morality rates, a mud hut and malaria. Mod me as troll if you wish, but fuck everyone who thinks that poor-ass countries should stay poor in order to continue our unsustainable lifestyles.