Long Term Effects of Outsourcing
simulate writes "There have been several postings about outsourcing and offshoring in the past
few weeks. Is outsourcing just a fad? In Outsourcing
Programmers is Bad Strategy for Software Companies
author Michael Bean compares offshoring to the enthusiasm for Internet startups
in the Nineties.
He claims
that
outsourcing programmers is bad for companies not because
of the programmer layoffs, but because technology companies lose their
capacity
to innovate.
Offshoring is a mistake
when technology companies confuse operational
effectiveness and strategy." I don't think the comparasion to Dot Bombs is entirely accurate - the trend to globalization overall has been going on for decades. Still interesting piece.
This has a beneficial effect of raising the income of a lower caste individual that her/his family can help expand the middle class, thereby increasing the overall demand for goods and services. The member of the higher caste may have difficulty getting into university, but if you already have wealth, you are not likely to lead a life equivalent to the lower caste.
In response to the snide sibling comment, affimative action in the U.S. is intended to promote minority students in professional fields that will return to their communities and bring those services. That is needed because most skilled white professionals refuse to open a practice in lower income or minority communities.