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Outsourcing Winners and Losers
An anonymous reader writes "The New York Times has an article on the winners and losers of the outsourcing trend. It's a Q and A session with a distinguished panel of experts on the topic, including Professor M. Eric Johnson, who says that, 'Low-skill jobs like coding are moving offshore and what's left in their place are more advanced project management jobs.' Now I know coders aren't rocket scientists, but less advanced than project managers? Ouch."
...that we've seen over and over. More interesting is the mistaken impression that it's only coding jobs going to India. Look at Business Week for another take.
There will always be market for high-quality programmers.
Higher quality means higher prices, which means higher wages are acceptable.
It's basically a refinement of the market, not a disappearance.
I live in Sweden, which has some of the highest labor costs in Europe. Yet, Sweden has a strong steel industry, despite steel manufacturing being quite a 'low-tech' industry, with cutthroat international competition.
(Coming from Japan, and increasingly China)
How do they compete? Simple: They don't. Sweden switched its industry to high-quality and specialty steel production requireing more skill.
The USA really needs to move their steel industry in this direction, but instead they leveled tariffs on imported steel. (now dropped after trade-war threats)
(Also, note that swedish steel was exempt from these tariffs, for the reason that they don't compete with american steel manufacturers, who aren't in the specialty market)
So, for the software market, I think we'll see something similar. And a choice will have to be made whenether to face reality, at a cost of the lesser-skilled jobs, or give the industry artificial resuscitation through tariffs.
Whoever modded above parent flamebait is a cum-guzzling whore. A Slashdotter actually apologizes for something (once in a millenium occurence) and somebody mods them flamebait.
And my fiancee is applying for teachers college. She's a mathy, loves it, and its good at it, and wants to teach kids math. Anybody who doesn't think that's a laudable goal is a fucktard.
The companies that handle the outsourcing soon reach the point where they don't need the US company any more. That happened in consumer electronics and appliances years ago, and it's happening in apparel. If it can be sold through Wal-Mart, there's no need for a US company to be involved in manufacturing or distribution. Branding problems can be fixed with advertising, acquisition, or pressure. Some well-known US brands are already just fronts for offshore operations.
In service areas, if the service can be delivered over the Internet or by phone, it can be moved offshore. Right now, most of the companies doing this are fronted by US companies. But those companies become hollowed out, until they're just brands.
Next, the intellectual property moves offshore. This has already happened in consumer electronics and is happening in semiconductors. No US company can make a CD-ROM drive without licensing technology from Asian companies.
Finally, the money moves offshore.
The US could end up with Third World income levels as a result of this race to the bottom. Don't think it can happen? Twenty years ago, nobody though there would be armies of permanently homeless people in US cities. Or that Argentina would become a poor country. Or that Britain would become poorer than Italy.
In the US, average real weekly earnings peaked in 1973. That's why your parents are better off than you are.