Jobs to India -- A Broad Look
dumpster_dave writes "Wired has an excellent 7 page article on the current and future trend and nature of IT outsourcing from the United States. The conclusion: the smell of inevitability--the economy will survive, though your job, as it is currently, will likely not. Outsourcing is expected to expand from Service and code projects to the creative aspects as well, with obvious correlations experienced in the manufacturing industry during the 70s and 80s. An excellent read that provides good coverage of the perspectives of players on all sides."
Please explain how the economy will survive when there is no longer a middle class because all the white-collar jobs have been moved over seas.
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
So if service jobs, creative jobs, research jobs, and development jobs all get outsourced... What's left and why, exactly, will the economy survive? Oh, right, we'll all get jobs dealing with people face-to-face, selling things to people with no money. Or we'll all wind up being managers.
Excuse me while I look skeptical and write this off as one more piece to make executives feel more comfortable about destroying their country and killing the population.
interesting... when reading the article, i notice the cost of their daily lunch is around 50 cents. now, for comparing:
average college cost - $70,000
average apartment cost - $800
daily lunch - around $7
just a few items. hey, to be honest i'd be happy making $20,000 per year if my lunch would cost 50 cents daily, apartment $30 per month (or free, as it is in many countries) and the best college runs around $3,000 for all 4 years.
all the amounts people make are relative to what they have to spend. would you like to make $300,000 per year? if your rent becomes $20,000 per month (hypothetically, for the sake of comparison), all of a sudden that doesn't seem like that much money.
I just love how people assume that in america everybody is fat and have free money growing on trees. we work 50 hours per week and our bills are very expensive!!!
This is one of the reasons that I am relieved that I no longer work in IT. I worry a lot about those friends of mine who still work in the industry, especially those who have kids. I think that part of the problem is also that the market was oversaturated, so to speak. IT became the big degree to get in the 90's, because "that's where the money is", so the jobs that do remain have a number of people applying for them. Post-boom, post-outsourcing computer field sucks.
-1, "1337" speak
Keep in mind that while some jobs are being outsourced to India, it serves companies even better to amplify the FUD about it. They don't have to actually do it, and their wage-slaves are bullied into terror, submission and lower wages -- especially the new-hires.
One line blog. I hear that they're called Twitters now.
I'm sure it's a fad much like the moving of American steel, automobiles, textiles, and a variety of other industries were. Oh wait, apparently companies have no shame in erroding their own customer base.
Don't forget that it was 97 and 98. *Everything* here in US was working then. Every startup was touted to be the next biggest thing. The 'hope bloat' if you will.
Times are different now. The bubble has burst and the companies (in a true capitalist way) are looking to strengthen the bottomline. If you cannot make money, well then atleast cut the costs (and yeah, I am aware of the cultural,social et al differences that are not factored but add up) and effectively, you've *made* money.
I do not want to rob you of your 'fad' but I have a feeling that this one is for real.
Free XBox, PS2
And probably one of the main reasons was they weren't ready for it. Now they are and as one indian service provider stated, they've worked to improve their product. Even getting the indian workers to adopt western names, 'Shawn', 'Jessica' etc. and working on pronounciation. While these may seem to be minor, consider the last time you had a grad student lecturing for the instructor of a college course and you couldn't understand a word he said (real teachers don't teach, they get grunts to do it and are actually working on grant projects or university fundraising, those who can't, do teach)
Power and communications were a problem, now these people who own and run the companies have their own generators and satellite communications systems.
Don't assume they didn't learn something and everything is as bad as it was. Dell's failure may well be attributed to only one service vendor who wasn't as polished as others.
A feeling of having made the same mistake before: Deja Foobar
Yes, why don't we outsource congress, what do we pay those assholes?? I'm shure we could pay a bunch of Indian PHD's (PHD in Poly Sci or something) to come up with laws at least as good as what comes from congress, at probably a tenth of the cost. Shit we would'nt even have to pay for all those building in DC. They could just email us our laws in PDF format and we could turn the capital into a 200 screen movie theater.
I thought sending manufacturing jobs overseas was a bad idea 20 years ago and sending Software jobs overseas is a bad idea. Eventully you have to do or make something cars, planes, software, genetic s, spaceships SOMETHING. We can't all sit around selling each other stuff at wal-mart.
People poo-poo this point of view, but I have yet to see any of these supposed "pure knowlege worker" positions advertised in the local paper. My guess is they don't exist and never will. They are the very wealthy elite's attempts to smoke screen the middle class.
In the 90's the laid off manufacturing were promised great jobs in IT or related fields. Now those jobs are being sent overseas. Next we are promised jobs as 'knowlege works' WTF is that. I 'm waiting for someone, anyone to show me ONE of these supposed position anywhere. You can't because they don't exist.
So Long and Thanks for all the Fish.
I am reminded of when Coke tried to penetrate the Indian market with their sugar water. They hired a high power American ad agency, who made these commercials about the 'heart of India', with misty images of the Taj Mahal and such. It flopped.
Then, Coke hired an Indian ad agency. These guys made commercials with sexy women and fast cars, and Coke sold like hotcakes.
The moral of the story: creative work is more likely to be relevant in the culture it was created in.
"If you think you have things under control, you're not going fast enough." --Mario Andretti
Back in the early part of the previous century, few middle class, and certainly no upper class people complained when textile, glass production, steel, and later manufacturing were shipped off shore. Many people just smiled and wagged their heads whenever Unions complained about jobs going overseas. Some people warned that off-shore job movement would sink the US economy.
Fast forward to the present. Who's complaining now? It appears to be whoever is left in the middle class. The upper class still doesn't care. One difference this time is that the middle class is largely un-unionized and therefore un-represented during job/salary reviews and other decision making activities.
If people want to change things, here are several things to consider:
Corporate law specifically states that actions taken or products produced by corporations must be in the public interest. Yes, it says that. So a good question to ask is Is it in the public interest to put them out of work by moving their jobs overseas?
Corporate leaders currently earn over 600 times the average salary of their employees. Moving jobs off-shore is likely to make a small percentage of the US population even more wealthy.
Yes, it's still about the economy. For all his other failings, Henry Ford had an interesting idea that his employees should be paid well enough to be able to afford one of his products.
Until corporate officers are encouraged to employ people from the country that issues their charters, the gap between the have's and the have nots in the US will continue to grow.
Isn't the automotive industry heavily regulated regarding foreign content? Isn't that the case for precisely the reason that Wired is blithering on about?
Also in the past fourty years haven't we seen the demise of the single-income family? Hasn't the price of goods, services, taxes etc all outpaced the increase in income? Don't Americans have the least time off and the worst hours in the industrialized world?
I don't see how the automotive industry is an example of how outsourcing overseas is a win/win scenario.
Am I missing something?
$5 / month hosted VPS on linux = awesome!
Your .sig is so ironic.
It should be illegal to say that freedom of speech should be limited.
There are too many people in India. When programmer A wants a nickel more, they will get rid of them, and get someone else who doesn't have an uppity attitude about money.
The only way the US will compete, ever, is if our standard of living drops...a lot.
Now, If everything I need to survive decently had its cost cut by 90%, then I'd be able to compete.
Personally, I'd like all corporat tax breaks be removed from any company that outsouces. If it makes them so much money, it shouldn't be a problem, right?
The Kruger Dunning explains most post on
The manufacturing and customer service jobs go first, then the tech jobs and it suddenly stops there. Bull-shit. After that it's accounting and HR, graphics and creative positions, account managers, sales. So, what's left? What's your next adjustment career? Anything that India and the Cheney administration are arguing for is guaranteed to be BAD for you.
That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
"The market can remain irrational longer than you can remain solvent"
"In the long run, we're all dead" - Keynes
No matter how true the rosy big picture may be, the devil is still in the details for those suffering from the change. If there are things we can do to make the transitionless volatile, why not do them?
Tweet, tweet.
Umm, what country are you living in? Unemployment is high. Jobs are not being created. Uneducated people can only work at Walmart, restaurants, and other jobs making a few dollars above minimum wage and producing nothing. How is that strengthening our country? So a few highly trained people can get jobs in bi-tech? Great, that takes care of about 1% of the work force, and the rest of the people are supposed to take hand-outs from them? Or live of wellfare funded by the taxes paid by the rich which are constantly increasing.
I don't want to strain you here, but if we have 1% of the population actually producing something, and the rest simply serving those elite few, A) we have no middle class, B) we have a HUGE trade imbalance and C)we are making other countries rich off of American ingenuity. This doesn't bother you? Maybe you want your children to compete for a few highly coveted jobs which pay extremely well but are taxed at 50%, or else give up and work at burger world as a slave to the rich. The rest of us want the US to actually produce and sell a variety of good all over the world so the US can grow and prosper even more. And yes, we would be better off if we made memory chips here and charged enought to make a profit. We can counter competition from other countries by adding tariffs to cover differences in price and use that money to pay off the deficit. Of course the deficit wouldn't be nearly as high because we would actually be producing and selling stuff rather than just consuming as fast as we can.
-Comedian
US exports to developing countries like India and China are continuing to rise. As the economies of these countries improve, they purchase more from the US as well.
Nonsense. That is the exact kind of thinking that has led to India staying poor for the past 50 years. India's closed economy ensured that Indian companies could be successful without striving to improve their products. Compare the average quality of goods you can buy in India to the average quality of goods you can buy in the US.
Here's a newsflash: India is neither self-reliant nor powerful. Open trade improves the economy and the living standards. There are no self-reliant countries anymore. Every country depends upon other countries for essential resources.
And it's not as if the call-center jobs are taking resources away from other, more productive endeavors. Until recently the unemployment rate in India has been through the roof. You would have a very good point if these outsourced jobs meant that people were not doing other stuff that would be more useful to the national economy, however that is not the case.
The East India company took natural resources away from the country. No money was input into the country in exchange for these resources - rather money was taken away from the country when the products of these resources were sold back to India. This is not the case here. Outsourced jobs infuse valuable foreign exchange into the country and provide employment to a large number of people, improving the overall lifestyle.
Mmmm.. Donuts
In the past 6 months I've been on the line with no fewer than 5 different outsourced support lines in India, and let me just say this....
You can replace "Patel" with "Josh" all day long (which BTW totally fucking cracks me up) but it is extremely difficult to get rid of the accent. Hell, you see the same problem in the US with children of immigrants who, while they've essentially grown up here, simply don't speak English outside of school due to their family situation or their circle of friends. I actually feel sorry for them, because many sound no better than their cousins who are FOB (Fresh Off the Boat, a word I learned from some Iranian immigrant pals) arrivals to the US. Call me racist if that's convenient for you, but I've found that in the case of Shawn and Jessica working for Dell in Bangalore it totally impedes the support process.
Even worse, there is a common tendency to be extremely polite and deferential (perhaps a cultural thing?) while simultaneously simply not understanding what the fuck I'm getting at yet refusing to deviate from the script or think outside the box. I count it among the most maddening things I've ever experienced on a telephone.
There is a basic simple solution to this whole off-shoring debate.
.
Give in and realize that
a. Software for life critical things (airplanes, military, nuculear reactors, etc) will remain the the US.
b. Software jobs for just about everything else will move outside of the US.
c. Linux and open source software will lower the costs of software so that there are significantly less paying software development jobs worldwide.
d. US based IT jobs will center around:
1. Data managament and security (DBA for a bank)
2. Data analysis - high level decision support for financial data
3. Physical presence jobs - on site IT/network work (pulling network cables, rebuilding pc's, etc)
e. The total number of IT related gradutes from US universities will drastically decline since the perceived job prospects are declining.
f. Commodity hardware ($300 dell machine), bootable OS CD's/firmware, and web based services will greatly reduce the number, type and size of programs installed on an end user's local machine. This compounds the reduction in support and development jobs since all of those installation program developers will be obsolete.
g. Mainframe type data centers will be the big dollar items in corporate IT budgets.
I think, with 10+ years paid programming under my belt + 2 CS degrees, that
a. there will be IT jobs in the US
b. the jobs will pay better than other skilled jobs
c. the pay will be lower in real terms than the current level when adjusted for inflation
d. that it workers in the US will have a lower standard of living than now, unless there is a drastic lowering of taxes at federal, state and local level from their 50% plus percent today.
e. that significant simplifications in government regulation at all levels are needed to make the US more compelling to operation businesses and employ US workers
f. that the ratio of people producing product to the people not producing product will have to be corrected from the projected major decline from todays level. The not producing product includes government workers at all levels plus those receiving handouts from the government (e.g., social security, medicare, ssi, unemployment, etc)
And this is the real problem - there is no sustainable advantage in outsourcing. Eventually, everyone who can outsource something does outsource it and then you're back in the same boat of no revenue growth, but it's five years later and you actually have less control over the situation. Plus, you've given your new foreign competitors the capital they need to create most of the infrastructure required to invade your market. The idea that capitalism requires the destruction of your economy ten years from now because it makes money a year from now is the main reason why we Capitalists are going to see our system collapse the same way that the Soviet system did. The main issue is that rewards will flow to those who have the discipline to wait for rewards, not those who choose to have them today. It's simply a case of short-term vs. long-term and we're on the wrong side of the equation here. If you think you're getting bit in the ass now, just wait a few years when the chickens finally come home to roost.
That is all.
:: stands speechless ::
If people did what you actually suggested, the global economy would revert to the 1700s.
Clue: Free trade is good. Economists say it is good. Economic theory shows trade tarrifs always lead to a reduced GDP in the long term. History shows it is good. Consider France. Before Napoleon, the various provinces were independent, and each had trade barriers (tarrifs, laws, etc) with each other. Napoleon got rid of them, and the entire economy prospored. Consider Europe as a whole. By tearing down trade barriers between countries, the European economy as a whole is becoming more competitive in the world. Consider the US trade relationship with Canada. It directly supports millions of jobs in each country. Hell, despite early criticism, even NAFTA has been successful!
A deep unwavering belief is a sure sign you're missing something...
What did we produce after we stopped producing shoes, then cars, etc? Other stuff!
When the jobs in agriculture started disappearing, people were told to retrain and get jobs in manufacturing. When the textile and manufacturing jobs were being sent overseas, we were told to reeducate ourselves and move up the food chain to knowledge work. If you'd read the article (either time it was posted), the looming question that nobody can answer is, *what comes after knowledge?* The author waved his hands, and like you, said *oh, something else*.
The point is, this is the first time in history when people have been educated for and lost two careers to outsourcing in a lifetime. The agricultural period lasted about 100 years, the manufacturing period lasted about 40 years, and the IT period about 20 years. It takes many people 25 years to pay off an education in the U.S. It is now a losing proposition. Whatever this next, great unknown thing is, the trend indicates it will last for 10 years (if it happens). Tell us now what the people who are losing their jobs need to be learning.
Capitalism works because human progress is unlimited.
Can you supply some proof that capitalism works? Where has it been tried? Certainly not in the U.S., where we have the worst mismash of capitalism and a centralized, regulated economy. Ever heard of the FRB, the FTC or a dozen other federal regulatory agencies? Ever heard of wage/price limits, minimum wages, tariffs, duties, NAFTA, favored trade status, or fast-track trade agreements? How about H-1B/L1 visas where certain industries are allowed to freely import cheaper labor denied to other sectors?
Unless you believe that progress will come to an end, you can rest assured that things will work out in the long term.
Nursing a burger patty from frozen pink disk to hot brown lunch is "progress". Got anything a little more substantial? As a previous poster pointed out, having your sig on that comment is classic.
Trade is fine you have something to trade. The US comes up with an industry and gives all the jobs to outsiders while our own people can't find decent paying work. We have to protect our jobs, and actually make something. I can't be the only person in the US seeing rows of closed factories in almost every city but a Walmart and Starbuck's on every corner. Answer me how Starbuck's is helping our GDP. Great, if there is a latte shortage in the world we can be there to help.
The US is manufacturing virtually nothing compared to what we used to. Take a look at our trade imbalances with EVERYONE and then tell me Free Trade is good. Also don't believe everything you read or hear, take a look around you and see for yourself. I see people with Masters Degrees working at Circuit City, and some people have been out of work for almost a year with no end in sight. Doesn't sound like moving into the future to me. Sounds like the a bunch of our states are nearly bankrupt and the US debt is huge.
Every job we send overseas is less money and less power for the US. But believe what you want.
-Comedian
My Dell phone call from two weeks ago: (note: My company has a three year next-day service contract with Dell -- they are no longer supposed to be sending the Commercial Clients to India yet somehow I wound up there)
[Indian accent]: "Thank you so much for calling Dell support my name is Josh how may I assist you with your problem today?"
[Upstate NY accent]: "Yes, this is Timothy [xxx] from [xxx], I have a Dell here with a bad power supply, I need to get a replacement sent to me. The service tag is [xxx]."
[Indian accent]: "Yes sir, thank you so much. Let me pull up your information sir. Ah yes sir I have it here. Tell me Sir what is your name?"
[Upstate NY accent]: "I already told you, my name is Timothy [xxx]. I'm listed on the account as the contact."
[Indian accent]: "Ah yes sir, thank you so much for giving me that information. Sir I need to understand your address."
[Upstate NY accent]: "It's [xxx]."
[Indian accent]: "Ah yes sir, thank you so much for giving me that information. Sir I need to understand your telephone number."
[Upstate NY accent]: "*sigh* This is all listed on the account. It's [xxx]."
[Indian accent]: "Ah yes sir, thank you so much for giving me that information. This is a Dell Optiplex correct sir?"
[Upstate NY accent]: "That's correct."
[Indian accent]: "Ah yes sir, thank you so much for giving me that information. How may I assist you with your problem today?"
[Upstate NY accent]: "Like I said, this unit has a dead power supply and I need to have a replacement sent out. We have a service agreement."
[Indian accent]: "Ah yes sir, I am understanding that you have such agreement. It expires in March 2005."
[Upstate NY accent]: "That's right, now can we make this happen?"
[Indian accent]: "Yes sir, we will do that. I need you to insert your Dell resource CD so we can run system diagnostics to confirm the problem."
[Upstate NY accent]: "Umm... the power supply is dead. I know what the problem is."
[Indian accent]: "Yes sir I am understanding that you think the problem is that, but I need you to insert your Dell resources cd so we can run diagnostic to confirm the problem."
[Upstate NY accent]: "Your not listening to me. The power supply is dead. I can't turn the unit on."
[Indian accent]: "Yes yes, I am understanding your problem, but we need to follow procedure. Please insert your Dell resources CD so we can run diagnostic to confirm the problem."
[Upstate NY accent]: "I can't open the CD-ROM drawer because the computer has no power. What part of that can't you understand?"
[Indian accent]: "Yes sir, I am understanding that the computer has no power. Is the computer plugged in to the wall outlet sir?"
[Upstate NY accent -- getting louder by the minute]: "You are not listening to me. The power supply is dead. That means it's not working. I can't turn the damn thing on -- please set up the service call for me."
[Indian accent]: "Yes sir I am understanding that you think that is problem, but we need to confirm it."
[Upstate NY accent]: "Alright this is going no where. Let me talk to your supervisor."
[Indian accent]: "No no sir, I can help you with this problem. Please insert your Dell Resource CD into the CD-ROM drive so we can run diagnostic to confirm the problem."
[Upstate NY accent - loud enough that the entire office can hear me]: "Ya know what? Fuck off. That's an American insult if they didn't teach you that in training."
[Indian accent]: "Yes sir, I am understanding your problem. Please insert the Dell resourc...."
[sound of phone slamming onto receiver]
[sound of me walking around the office threate
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.
>Can you supply some proof that capitalism works? Where has it been tried? Certainly not in the U.S...
Try the US at the end of the 19th century, and to a lesser degree, the early 20th. The results (depressions, dislocations, mass poverty, child labor, corporate thugs beating and killing workers who object to being exploited, wealth concentrating in the rich investor class, etc.) show that capitalism doesn't work. Of course, communism doesn't work either. The lesson we as a nation should take from the last 150 years is that what does work is a system in which capitalism provides the engine of the economy, but its excesses are restrained by strong government regulation. Too bad the right didn't learn this lesson.
No sig? Sigh...
>>Modern software is designed with resuse in mind.
Agreed. Reuse is great. Where it makes sense.
>>If you are trying to re-invent it the one that is completely out of toucvh is you, not your Indian counterparts.
I'm not advocating reinventing the wheel. What I'm saying is that you need to lay out and understand the problem that you have to solve.
Then pick the proper tools and components with which to solve the problem. It doesn't make sense to 'turn the problem around' and shovel it into a solution.
Show me how Java and J2EE can solve the business problem. Show me how this code block or an Entity Bean will solve the problem. Not how the problem can be looked at in such a way that it fits the code/framework.
There's a subtle difference there. Knowing that difference is part of knowing the difference between good and bad design. A 'closed in' design methodology does not work, it is not flexible, is not extendable and will not handle future requirements gracefully.
Reuse rocks. But good design rules.
wbs.
Huh?