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A Thoughtful Look at Indian Outsourcing
thefinite writes "This article needs to be read by anyone interested in the outsourcing of IT jobs to India, no matter your opinion of it. It dispels some rumors (for example, if Indian IT companies do such bad work, why are over half of Carnegie Mellon's highest-rated programming companies Indian?). It addresses all of the arguments. Perhaps most importantly, it adds faces to the problem. It not only tells us about the American programmers who are out of jobs, but also about the Indians who are getting them. In the end of it, this is what Free Trade is about: people. This article makes that clear."
I find it rather ironic that so many people in America, the land of capitalism, hate outsourcing so much. This is simple economics right out of Adam Smith. People in India can do the same things as people here in the States, and at a significantly lower price. Therefore, they get the jobs, and rightfully so. One good benefit for Americans is that this allows their employers to use that money elsewhere. And yeah, IT job salaries might fall, and some people might have find jobs outside the IT field. But for the most part Indians need these jobs much worse than we do. I'm willing to bet that as far as possessions go, the average unemployed computer geek is significanlty better off than the Indian worker who "stole" his job.
That's one thing this is NOT about: free trade. Free trade is when an unemployed American computer scientist can go to India to get a job. Guess what? It's impossible for Americans to get work visas in India. Why? Because they are protectionist.
People need to realize that the exodus of jobs is a one-way ticket. Indians can come over here and work as programmers, but Americans can't go to India. This is really a story of the American worker getting shafted by the illusion of "free trade." So let's stop the propaganda and say what it really is.
... it's the white collar execs (and wannabe execs) here in Corporate America that we're mad at!
They get the nice fat promotions and bonuses, while our jobs go elsewhere. And we are the same people they praised just last year as invaluable assets to the company.
So what happened? They can't get rich pulling fancy accounting tricks, so this is what they've resorted to.
I seriously hope that I'm wrong when I predict that this whole thing will fail miserably (taking the off-shore jobs with it).
They are efficient coders because of the relative cost advantage they have over US based coders. Probably related to there being 4 times as many. US didn't have a problem that needed 4 times as many coders.
being devoid of western egos
I don't remember any part of Hindu that promotes loss of ego. In any case Indians have their own impediments with caste and family ties that probably cause as much organizational difficulties as individualism does in western organizations.
Agree with the rest but then I'm not a coder so it's 'your' job not 'our' job.
Are you serious? Have you worked with a programming team from India before? Had anyone come over to your company on an H1B to assist you during busy season? If not, you have no idea what you're talking about. What the hell is "western egos"? Do you know anything about the different Sects in India, and which one most college educated Indian workers come from? Trust me, India has just as many egotistical programmers as any other country in the world - so don't go around assuming either side is more productive.
In any case us western countries have had the lion's share of the distribution of wealth for far too long at the expense of poorer nations. I don't think we have the right to complain if an Indian coder takes our job.
Well, forgive me if I'm not as self depreciating as you are, but I feel as though I have *plenty* of right to bitch about my job going over seas. What's with this hippy 'let the rest of the world succeed while destroying ourselves' attitude? Why must I sacrifice my job for someone from another nation?
"Ignorance more frequently begets confidence than does knowledge"
- Charles Darwin
In any case us western countries have had the lion's share of the distribution of wealth for far too long at the expense of poorer nations.
There are two types of wealth: natural resources, and everything else. You might argue that natural resources are "distributed" in some unfair way, but by far most of the wealth in this world is created by people. Emphasis on created.
If I mow your lawn, fix your car, or write some software for you, I've created wealth. In return, you give me money, which is a token of the wealth you created and gave to other people (unless you happen to own a lot of oil, timber, iron ore, etc., in which case you got the money by selling off this wealth that you "found").
The west didn't get all its' wealth given to it. The economic climate was designed to be (and lucky enough to be) the most conducive to economic growth. It encouraged people to create wealth because they get to keep some of it.
As more countries reform their economic systems, the populace will create wealth for themselves, and the other nations with wealth to invest will see these new markets as profitable, and do business there.
That doesn't stop you from making wealth for yourself, it just means that you have more competition.
I say, bring 'em on!
"I have never let my schooling interfere with my education." - Mark Twain
You didn't sacrifice your job. Your job disappeared, and no amount of wishing, screaming, arguing, protesting, legislating, hoping, lobbying, letter-writing, bribing, petitioning, imagining, discussing, complaining, worrying, fretting, bothering, sign-writing, stalking, or planning will bring it back.
Your best bet is to find another job.
This is how it is; it cannot be otherwise.
"Why continue to argue about it, just don't do business with companies that outsource to India. "
t ml
You better stop visiting Slashdot then, because their parent company VA Software is a big producer of software that assists in "offshoring" of jobs.
Just see their recent press releases here:
http://www.vasoftware.com/press.php/2003/1164.h
Hell, just look at their home page!
You are quite wrong. Much of the debate of the next Presidential election will focus on the "free trade" policies that are gutting the middle class in the U.S. to the benefit of U.S. Big Business. Many many middle class people who used to have decent jobs who now are out of work, or working at WalMart, are mad as hell. American workers are coming to realize that they cannot compete with overseas workers who earn a pittance. In the end, no amount of money from Big Business will keep the electorate from kicking the guilty parties out of office. Thankfully Indian programmers cannot vote for American congressmen and Presidents
if not anything else, americans are myopic forgetful idiots. Everything about america reflects this... Let me explain myself before you can call me a flame bait -
Everyone today is complaining about "Walmartization" of the country, at the same time enjoying the fruits of it i.e. cheap goods. Have you realized how much the dollar fell in the last 2 years or so? Did that reflect in inflation? Do you even know how tough it would be once the inflation starts spiralling? ( I do, because I come from a different country). So, if you stop walmartization aka globalization, the next thing you see is that a deoderant stick will cost 10 bucks in your *local owned* store and a replacement part for your computer will cost several times the cost of the market value of the PC u are using. At the same time, health care costs will spiral up and employers will be reluctant to increase pay while covering ur health care costs. The cheap mortgage you got because of other countries putting their money in US treasuries and bonds will no longer be viable and you will be forced to renegotiate for a higher interest rate or face forclosure, because those countries will shift investments to euro instead of the dollar. If u dont think this is possible, then pull up a list of nations that "invested" in USSR and not USA.
Having explained myself, let me point out your myopia - you are crying hoarse at the negative impact of globalization on you but not looking at what it has done positively. You are also forgetting that how protectionist measures have beggered countries - eastern bloc and soviet union and many other nations including India and Brazil. I dont have a solution to all your personal problems. But what I am telling you is that you are not factoring in many things into your own reasoning.
You may implement fair trade policies. You may implement trade restrictions. You can declare war on India. You can vote Democrat. You can vote Green. You can vote Libertarian. You can enact a law that forces all US companies to use only US Citizens for all software engineering labor, to force them to use only foreign labor, or anything in-between. You can make it all free, or all restricted.
The reason businesses choose to hire cheap programmers is because that is how much they are willing to pay. If you artificially try to raise that price, they will not hire programmers at the higher price; the projects will simply go away.
You will not make your job come back. It is gone FOREVER. It is a dead issue. Politics and greed are simply irrelevant; this is the reality you must face and deal with constructively, by looking for ways to adapt your skills.
A brief aside:
I have little sympathy for the millions of my fellow Americans who charged into the gold rush of computers in the 90's who now have no jobs. I did not choose this lifestyle because I had dollar signs in my eyes. I chose it because it is who I am and have always been.
I am fortunate that people are willing to continue to pay me to do something which I enjoy and do well. But I am not so naive to think that this will always be the case; I am mostly concerned with whether or not I am providing more value to my employer than I cost. If I fail to do so, then it is up to me to find new ways to be productive.
And I'm lucky in that my employer actually asked me to provide weekly status reports. Imagine that -- he actually ASKED me to do something which I really wanted to do anyway: Once a week, I remind my bosses how I am contributing more value to him than he is having to pay me. And by doing so, he is happy because he feels he is getting a bargain, and I am happy because I am well-paid, enjoying my job, and likely to keep it.
But there's more than that. I'm also keeping up on the industries we're in, and the trends in those industries. And I am using that to get advance warning of what skills I will need to brush up on, and the likelihood of my company succeeding in certain areas, and most importantly, when the project I am is in danger of becoming cancelled by the company.
My resume' is a marvel of marketing: It tells an employer not just that I have skills, but that I do this because I enjoy it, have always enjoyed it, and have a history of seeking to make value for my employers.
I don't have to like doing this. I just have to do it. That is part of being a professional. That is part of adapting to reality.
This is how you deal with a down job market constructively! You can go ahead and do your superstitious lobbying and your arcane petitions to the witch doctors in Congress to somehow magically summon your long-dead, buried, and decomposed job from the grave. There is no evidence that such mythical sorcery has ever managed to successfully resurrect a job, and it's not for a lack of trying!
Fuck politics. Instead, market yourself well. Learn about the industry you work in. Make your goal to produce more value than you cost. Do these things, and you never need worry about having a job, regardless of what you do or where you do it.