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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."

146 of 902 comments (clear)

  1. Holy crap! by lake2112 · · Score: 2, Insightful

    Jobs are being outsourced to India!!! That bastard headhunter acted like it was my fault. It sucks how some companies will pay for 9483 managers and can't pay for 2342 developers. So to keep the managers jobs they lay off the important people.

    1. Re:Holy crap! by cybermace5 · · Score: 5, Funny

      Oh, we'll be telephone sanitizers, middle management, hairdressers....

      --
      ...
    2. Re:Holy crap! by be-fan · · Score: 2, Insightful

      What did we produce after we stopped producing shoes, then cars, etc? Other stuff! Capitalism works because human progress is unlimited. Unless you believe that progress will come to an end, you can rest assured that things will work out in the long term.

      --
      A deep unwavering belief is a sure sign you're missing something...
    3. Re:Holy crap! by Bobdoer · · Score: 2, Funny

      Then we'll send all of those brilliant scientists and evil CEOs to another planet. Why didn't I think of that?

    4. Re:Holy crap! by crymeph0 · · Score: 4, Insightful
      ...you can rest assured that things will work out in the long term.

      A deep, unwavering belief is a sure sign you're missing something...

      Your .sig is so ironic.

      --
      It should be illegal to say that freedom of speech should be limited.
    5. Re:Holy crap! by vsprintf · · Score: 2, Funny

      Oh, we'll be telephone sanitizers, middle management, hairdressers....

      Forget middle management. With no workers left to manage, who needs a middle manager? From now on, kids coming out of school will have to start at the top. Let's see - how many new CEOs do we need this year?

    6. Re:Holy crap! by vsprintf · · Score: 5, Insightful

      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.

    7. Re:Holy crap! by zeno_2 · · Score: 2
      What is the US going to produce if we outsoruce everything?

      According to Mr. Stephenson: music
      movies
      microcode (software)
      high-speed pizza delivery

    8. Re:Holy crap! by Anonymous+Codger · · Score: 4, Insightful

      >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...
  2. Timothy was outsourced to India by FallLine · · Score: 5, Funny

    Enough said.

    1. Re:Timothy was outsourced to India by SparafucileMan · · Score: 2, Funny

      Thats cause Tim writes in Java and ColdFusion. Tim Sr. still programs in Cobol and Fortran, and is thoroughly over-booked.

  3. You know it's a dupe when... by Anonymous Coward · · Score: 5, Funny

    ...the link to the article is already colored visited from when you read it last Friday.

    Maybe I should karma-whore a little bit and repost some of the highly moderated comments from last time?

  4. Duped article, so I'll dupe my comments by GreenCrackBaby · · Score: 5, Informative

    Rather than rehash what I said about this already, i'll just link to my previous post regarding outsourcing.

    Nobody ever talks about how this will affect our industry 10-20 years down the road!

    --

    "The market alone cannot provide sufficient constraints on corporation's penchant to cause harm." -- Joel Bakan
    1. Re:Duped article, so I'll dupe my comments by Anonymous Coward · · Score: 2, Funny

      Nobody ever talks about how this will affect our industry 10-20 years down the road!

      By then people will have forgotten it's a dupe! Duh!

    2. Re:Duped article, so I'll dupe my comments by Anonymous Coward · · Score: 2, Informative

      heh ... I'll take you a step further and outsource all of the +5 comments.

    3. Re:Duped article, so I'll dupe my comments by Sanksa+Wott · · Score: 5, Interesting

      I agree, and I feel like the effects are evident already. Ive completed a MS in CS, and it seems harder and harder to find jobs that let you "get your foot in the door". Everybody wants 10 years of blah-blah experience, but how do I get experience with specialized enterprise development tools when I do tech support all day? I mean, I cant even get an interview at my own company (300k employees, worlds largest courier service...) because I dont have copies of BEA software installed at home to play with.

      I mean, if it's guaranteed that those entry-level/junior positions are going the way of the buffalo, I will have no experience for those mystical "pure knowledge" positions, should they ever appear. Have I mis-invested 7 years and tens of thousands of dollars on the wrong college degree? Should I just say F*** it all, give away all my hardware, and go get a paper MBA from Sallie Struthers and become a store manager at a Target or something? It's like having a degree in model ship building. Sure it's hard and it takes decades to be considered a master, but only a few really make money for doing it the old fashioned way, and most people just get their model ships from a store that buys them from overseas where they are made for cheap.

      From the duped article, p5: "Your very nature will drive you to fight," Lord Krishna tells Arjuna. "The only choice is what to fight against."

      sorry for the rant, but its tough these days

      --B

    4. Re:Duped article, so I'll dupe my comments by adamontherun · · Score: 4, Interesting

      Its not as simple as, yes it will, or no it won't happen. From my experience, it was a mixed bag.

      Used elance.com to find Sidharth over in Bangalore. Sid was cool, spents lots of time with us, hours of Q and A on our online spring break site. He did a good job on the coding, but when it came to getting the ever important cultural aspects of the project, it was a disaster.

      Our launch day promoted our Discount Trips to Cancum.

      Ummm. Sid, no, Cancun...

      Oh. Very Sorry Sirs... next Day. Diskount trips to Cancum ... you get the icture

    5. Re:Duped article, so I'll dupe my comments by riffenator · · Score: 2, Interesting

      Are you fucking kidding me?

      Can you read HTML?

      This is grandma quality code.

    6. Re:Duped article, so I'll dupe my comments by vsprintf · · Score: 2, Insightful

      Ive completed a MS in CS, and it seems harder and harder to find jobs that let you "get your foot in the door". Everybody wants 10 years of blah-blah experience . . .

      The job ads looking for a laundry list of experience in wildly different areas or 15 years of Java experience are bogus.

      - Placing an ad that no local worker can fill: $50.
      - Spending only $50 to comply with federal regulations that make you seek local workers first: Priceless.

  5. IT Fads by Goody · · Score: 5, Interesting

    Outsourcing everything to India was in vogue around '97 or '98. It didn't work then and it's not going to work now. But everyone forgets the problems and history repeats itself.

    If you don't like this fad, wait five minutes...

    --
    Tired of being "punished" by the Slashdot $rtbl since 2002. I'm now over at http://soylentnews.org/ .
    1. Re:IT Fads by Kenja · · Score: 2, Interesting
      "Outsourcing everything to India was in vogue around '97 or '98. It didn't work then and it's not going to work now. But everyone forgets the problems and history repeats itself."

      The problem is that it did work then. It gave a short term boost in stock prices so the CEO could get a second house before quality dropped.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    2. Re:IT Fads by Wister285 · · Score: 5, Insightful

      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.

    3. Re:IT Fads by savagedome · · Score: 5, Insightful

      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.

    4. Re:IT Fads by SoSueMe · · Score: 5, Funny

      If you don't like this fad, wait five minutes...

      ...and it will be reposted on /.

    5. Re:IT Fads by ackthpt · · Score: 5, Insightful
      Outsourcing everything to India was in vogue around '97 or '98. It didn't work then and it's not going to work now. But everyone forgets the problems and history repeats itself.

      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
    6. Re:IT Fads by Anonymous Coward · · Score: 2, Informative

      Most of the failures with Indian outsourcing have been due to poor planning.

      For example, if your SPECS make assumptions and have bugs, don't expect a contractor to do anything extra like TEST that what you asked for makes sense. You get what you asked for. Garbage in garbage out. Why should they care when they have no vested interest (assuming they even NOTICE your specs are broken!).

      So US companies are getting better at speccing things, because they are NOT going to bring these jobs back. You can hire SIX Indians for the price of ONE American. You can't compete with that.

      I really love the Bush White House quotes about "retraining" displaced tech workers. FOR WHAT? Walmart?? We can't all dance around on an aircraft carrier in a clown suit. Fucking pols.

    7. Re:IT Fads by be-fan · · Score: 2, Interesting

      And guess what. We're still here! And things are better than ever! We've been out-sourcing for decades, and we're better than ever!

      There may be no more jobs in making steel, or cars, or textiles, but back then, there weren't jobs in electronics, bio tech, etc.

      Oh, and by your logic, if you stopped outsourcing stuff like hardware manufacturing, things would be so great! I mean, we'd be even better off if we made memory chips in the USA rather than in Taiwan. Oh wait. That'd put a lot of our electronics companies out of business! Doh...

      --
      A deep unwavering belief is a sure sign you're missing something...
    8. Re:IT Fads by SmilingMonk · · Score: 3, Interesting
      Outsourcing software development was "in vogue" in 1992 at the engineering company where I worked at the time. I trained my replacement for three months. He and his team of three returned to India. I was shown the door and the black asphalt beyond the sidewalk.

      It's coming back around. Only when corporate leaders (followers?) understand that this isn't making them as much money nor as quickly as they thought they would will any jobs return. But then I think of steel, glass, textile, photographic equipment, TVs, and I wonder.

      Maybe we're nothing but expendable resources in a protected capitalist system? Ya. That's it. Nice dream, eh?

    9. Re:IT Fads by comedian23 · · Score: 5, Insightful

      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

    10. Re:IT Fads by captain_craptacular · · Score: 2, Interesting

      Um, what country are you living in? Uneducated untrained people can get jobs in the construction industry that pay more than many "white collar" degree required jobs thanks to record low interest rates and a booming real-estate market. The hell with wal-mart, become a framer. And these people are producing something...

      --
      They who would give up an essential liberty for temporary security, deserve neither liberty nor security
    11. Re:IT Fads by Anonymous Coward · · Score: 2, Insightful

      (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)

      No, real teachers teach. Self absorbed pricks piggybacking the educational institution for their own projects have others do their job for them while getting paid a fraction for it.

      Don't confuse researchers with teachers.

    12. Re:IT Fads by frank_adrian314159 · · Score: 4, Insightful
      The bubble has burst and the companies (in a true capitalist way) are looking to strengthen the bottomline.

      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.
    13. Re:IT Fads by nelsonal · · Score: 2, Informative

      One other reason for the very high wages, have you ever met a 50 year old contractor? Unless they moved into managment in their late 30s/early 40s, they have usually physically worn out their bodies. They trade higher wages for a shorter career. There is no free lunch.

      --
      Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
    14. Re:IT Fads by be-fan · · Score: 4, Insightful

      :: 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...
    15. Re:IT Fads by comedian23 · · Score: 4, Insightful

      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

    16. Re:IT Fads by wideBlueSkies · · Score: 5, Interesting

      I'm an Application Architect in NY putting together a $10 million system for a big bank. We have a handpicked core of requirements and design people here in NY.

      We've painstakingly gathered over 1200 pages of business and functional requirements, laid out the high level framewwork for the system, and now we're in the detailed technical design phase of the project.

      We have a team of 15 people in Mumbai. All Java centric programmers. A couple of senior guys with 10 years experience, (C++ before Java), and the rest are intermediate level (6 years and less). These guys are all taking part in the detailed design work.

      What a freakin mistake this is.

      Damned Indians are so used to reusing prepackaged code and components that they can't think about good design. What I mean is that they don't think about a problem and then how to solve it properly, they try to change the problem to suit the code they have lying around or have found on the net.

      I keep asking for language independant design documents. Give me a UML or even a freakin VISIO flow from which I could write a component in any language. But I just keep seeing the same old J2EE centric crap. Using Entity beans and Service locators instead of more generic descriptors. I should be able to look at a design doc and figure out how to write a system in Perl, or C++, or Java or COBOL.

      Java is all they know. Thank god. It sucks for my project, but I think this is good for American tech jobs. These Indians can't think outside the box. So the best I think they'll ever be able to accomplish is grunt coding work, after being spoon fed requirements and design work.

      Oh yeah, they don't like to read any more of the requirements docs than they have to. Nobody in Mumbai has the big picture about my project. The knowledge is here in NY.

      If I had to, I could find 10 guys in my division to learn about this system and crank it out (and I already know 5 top knotch guys that I can call if need be, and the other architect has a couple more), but it'll never happen. Better that the company pays 1/10 wages than have the system written properly.

      So anyway, bone up on your design skills boys, and get used to spending time talking to clients about the business. This is how to keep a tech job in the US. Package the grunt work and send it to Mumbai. Don't let them make decisions because they can't.

      wbs.

      --
      Huh?
    17. Re:IT Fads by bluGill · · Score: 2, Interesting

      Compared to framing, sheetrock, or masonary, plumbing and electrical is not hard on the body. I've done all of the above on my own home, and some of it as a laborer.

      Few people can do framing after 40. I see crews that do it, but the kids next door will complete a house in 1/3rd the time, and it will be better. Expirence is overrated after you have 2 years in, at least for framers. All you can learn after that is how to run people. (And if you are motivated and have the right mind I can get you = to any foreman in those two years!)

      There are a few exceptions, that old guy running the masonary crew with all the kids can do more physical labor than any one of them, which he proves every month or so in a race. However that is a combination of being lucky enough to have the right genetics, and knowing all the tricks. Most people's body will not take that abuse. I did construction all last summer, and the kids starting after me were able to do more. My body just can't take the abuse their can. (It isn't brute strength, when it comes to a brute strength contest I could beat some of them, but in getting work done all day they beat me, whereas 10 years ago they would not have)

      Plumbing and electrical work is one of the few places where old guys can keep going. There isn't as much heavy lifting involved, and they have the kids do what little there is. In framing there is often so much heavy lifting that everyone togather wasn't enough and a second crew had to be called to help.

      Don't bring out machines. They help, but if you look closely you will notice on most crews it is the kid running the bobcat, because the machine are hard on the back. Some men[1] are exceptions again, but most while able to run the machine better than the kid, cannot take the pains they get from running it.

      I'm not saying plumbing and electrical work is easy on the body, I'm saying that it is easier than most construction jobs. Even then I see a lot of kids helping the older guys, meaning that most of the kids go on to some other job.

      [1]Yes men, there are almost no women in construction, genetics work against them even more because they don't get the brute strength needed for some tasks.

    18. Re:IT Fads by Samuel+Duncan · · Score: 2, Insightful

      What you don't realize about Europe is that besides free trade they also impose social standards. Indeed richer countries are giving money to the poorer increasing the living standards there. That's why Europe works but the US version of free trade not.

      --
      Over 90 years and counting !
    19. Re:IT Fads by rcs1000 · · Score: 2, Insightful

      I'm sorry, but you're wrong.

      "Every job we send overseas is less money and less power for the US. But you believe what you want."

      I shall skip the lecture on the law of comparative advantage. I shall avoid talking about how spinning jennys put home textile workers out of business, or how coding software is not bending buts of metal. I shall avoid pointing out the America has lost jobs in manufacturing cars since the '60s, electronics since the '70s, memory chips since the '80s, computer programming since the '90s... and has grown richer not poorer. Accoding to John Mauldin, a distinguished economist (www.frontlinethoughts.com), 96% of the world economy's growth since '98 has been generated in the US. I shall pass on mentioning that the US still has one of the lowest rates of unemplyment in the world. (Certainly compared to more protectionist Europe.)

      Instead I shall mention rights and freedom.

      Lets say I have a San Jose based consulting business, and am bidding against Cap Gemini E&Y in France for a contract at a Brazilian aerospace company. If Cap E&Y can offer cheaper prices because it hives SOME of the work of to India, then I lose, my company loses, and all my employees lose. What right do YOU have to stop me hiring workers in India, or outsourcing some of my work there?

      What right do you have to make ME lose that contract.

      Robert

      --
      --- My dad's political betting
  6. Also see by nil5 · · Score: 5, Informative

    Bob Cringely has a good article on this as well, aptly titled "It's our own damn fault".

    Also, from another perspective is this article from the India Times

    1. Re:Also see by glinden · · Score: 3, Interesting
      Excellent article by Cringely. A key point from the article:
      • If a resource doesn't give you a competitive advantage, you can outsource it without any damage. But if it is a key differentiator, NEVER outsource it.
      Too many companies seem to be forgetting this these days. If it's your core competitive advantage, you can't outsource it.

      If you need to develop better technology, if your products need to be higher quality, if your customer service needs to be better than your competitors, you can't outsource that part of your business. Any competitor can duplicate anything you've outsourced, often as easily as hiring the same subcontractor, so anything that is oursourced can't be a source of competitive advantage in your market.
  7. Please explain.... by Kenja · · Score: 5, Insightful

    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?"
    1. Re:Please explain.... by RickHunter · · Score: 4, Insightful

      Good question, and one no-one seems to want to answer. Most will handwave and make vague comments about "expanding economy" or "dealing with people" or "management", but that's bull. This is the start of an offensive to eliminate the American middle class, and replace it with a permanent base of slave labour in "developing countries".

    2. Re:Please explain.... by be-fan · · Score: 4, Insightful

      Its quite a strech to say that "all the white-collar jobs have been moved over seas" when programmers hardly comprise all white collar jobs.

      And I hate to put it in these terms, but I don't see a whole lot of difference between a certain class of programmer jobs and manufacturing jobs. I mean, isn't that the whole point of languages like Java? To structure things so tightly that programmers are basically just there to put pre-built parts together in a certain order? Does it really less skill to assemble a car engine than to make a Java servlet that processes customer transactions?

      --
      A deep unwavering belief is a sure sign you're missing something...
    3. Re:Please explain.... by gengee · · Score: 4, Insightful

      Easy: We cannot import from India more than the sum of what we export (to all countries). When we outsource American IT jobs to India, we are merely importing labor -- the same as we would import a car, or electronic device.

      When an American company -- a company which sells the majority of its services or goods in America, for American dollars -- hires an Indian, the American company must either:

      a) Pay the Indian employee in American dollars, or
      b) Convert the American dollars to rupies, and pay the Indian employee in rupies

      Either way, the result is the same: At some point in the chain, someone is taking dollars for rupies, whether it's the employee or a third party. That party is not taking dollars because they like the smell of them. They're taking the dollars because they intend to buy American goods with the dollars. (Or they intend to convert the currency to another foreign currency -- and so the chain goes).

      That we cannot import more than we export -- over the long term -- is true. To believe otherwise would mean we somehow live in a bubble where foreign countries work for us for free.

      There is simply no way, over the long term, that we could outsource all of our jobs, to India or anywhere else anymore than they outsource their jobs to us. (More on that below). It's just not possible.

      The special interests will come up with all sorts of nonsense, all manner of jargon to support their fear mongering. They'll talk of
      races to the bottom, living wages, social justice and other such things. But what they really mean is "gimme." (Read: I deserve to be making higher real wages for the same equivalent work because I am an American. When protectionists speak of races to the bottom, they ignore the flip side of the coin: a race to the top).

      We can rack up debt in the way of trade deficits. Debt which will doubtlessly have to be paid off eventually. But sooner or later the dollar will fall against foreign currencies -- as it is currently, btw -- and foreigners will begin to receive repayment of their loans to us, by way of American exports.

      As American exports increase, so too will employment, barring commensurate increases in productivity.

      One other important point to make is the falsity of the assumption that only American companies are offshoring. This is the most ridiculous assumption of all, and I suspect it's the root cause of Americans' uneasyness towards offshoring.

      Foreign companies offshore jops to America, too. In fact, more jobs are presently "offshored" -to- America from foreign companies than the opposite.

      We all know how Flint, MI was hurt by General Motors' offshoring of factories to Mexico. Michael Moore even made a movie about it. But most people don't know about the tens of thousands who are employed in America by Toyota, by Mazda, or other Japanese car manufacturers. An American factory closing and moving to Mexico makes a great fear-mongering evening news story, but a similar-sized new factory operated by a foreign company in America does not.

      Capitalism is inherently cyclical. It's the job of policy makers to make these cycles as painless as possible. But the cycles will always remain.

      There is no need to blow a fuse over it.

      --
      - James
    4. Re:Please explain.... by monkeytalks · · Score: 2, Interesting

      You make excellent points, James--but the fact remains that this trend means that certain types of jobs will have less demand in the US. Readers of Slashdot are more technical than the average American and many of our livlihoods are impacted by the shrinking demand of the technical labor force in America. So while the net sum may be the same for other Americans, it still sucks if you're an American programmer. (Cheaper programmers is probably a good thing for say... a salesman.)

    5. Re:Please explain.... by DukeyToo · · Score: 4, Interesting

      Silly troll, you make the classic mistake of likening programming to manufacturing. There is *no* similarity, because each programming project is different. No manufacturing plant in the world makes each item different.

      Artists and craftsmen make unique items, and so do programmers (yes, even in Java). It is an inescapeable fact.

      Outsourcing has a chance at working, not because it is the same as manufacturing, but simply because it appears to be cheaper than doing it locally.

      --
      Most writers regard truth as their most valuable possession, and therefore are most economical in its use - Mark Twain
    6. Re:Please explain.... by gengee · · Score: 2, Insightful

      "You claim that every dollar we send to India is used to buy from the US. I call BS on that."

      Sort of. I claim that every dollar we send to India is eventually either spent on American goods, or converted to another currency. Not necessarily immediately. The propogation is not instant. It could even take years. But eventually someone is going to come looking for their due, an American export.

      Otherwise you're suggesting we're getting something for nothing. And if we're getting something for nothing, why wouldn't everyone else be getting something for nothing to? And where then is this something coming from? (Or if others could not do as we do, what are we doing that's so special which causes us to get something for nothing?)

      I'm not debating the current state of the economy. It's not great. It's not great in Bangalore either. Things could probably be done to make the situation better. (Though smarter people than I at the policy-maker levels are certainly trying, without much luck)

      If it's true that people with multiple doctorates are stuck working at fast food joints, I would guess they either chose a particularly esoteric field for study, or live in the wrong city or town for their work. I think that's the exception, not the norm.

      That being said, if there really is no work to be done in their chosen field field, what would you do, if you were king, to rectify the situation?

      Full employment is one of the easiest things in the world to create. All you have to do, as a government, is print money and put the people to work. But the trouble is if you don't put them to work efficiently -- an almost impossible task at such a large scale -- you create inflation, and everyone suffers as their real wages decline. ...Not a great situation for anyone.

      I'm not advocating a pure Smithesque invisible hand, market-driven survival of the fittest economy. I'm just saying the problem is probably not offshoring.

      --
      - James
    7. Re:Please explain.... by IshanCaspian · · Score: 2, Insightful

      And I hate to put it in these terms, but I don't see a whole lot of difference between a certain class of writers and manufacturing jobs. I mean, isn't that the whole point of languages like English? To structure things so tightly that writers are basically just there to put pre-built words together in a certain order? Does it really less skill to assemble a car engine than to make a novel?

      *end spoof*

      There's no similarity between programming and manufacturing, since the goal of manufacturing is to reproduce a given design as quickly and cheaply as possible, whereas the goal of programming is to create the design that is reproduced.

      --

      But there is another kind of evil that we must fear most... and that is the indifference of good men.
    8. Re:Please explain.... by frost22 · · Score: 2, Interesting
      This is the start of an offensive to eliminate the American middle class, and replace it with a permanent base of slave labour in "developing countries".
      Every Governement / ruling elite that did this before ended up heads on a block or in front of an execution commando.

      The middle class is essentially what stabilizes a civil society. Without that you end up either with a fascist dictoatorship (the likes of middle america) or a revolution.

      Now, is the FBI actually good enough to control a nation in open rebellion ?

      --
      ...and here I stand, with all my lore, poor fool, no wiser than before.
    9. Re:Please explain.... by fab13n · · Score: 2, Insightful
      But when another country buys dollars, it doesn't know exactly what it gets, because the dollar's value will change over the time in an unpredictable way.

      So, if I buy $100 and my money raises 10% compared to dollar, I'll only be able to buy worth 91 old dollars of american work. And there, money leaked from USA! Moreover, next time I won't trust the dollar's stability, and bill more dollars for the same work, thus depreciating the dollar even more. Eventually, the situation will be stabilized when the price of work (and thus standard of living) will be comparable among countries...

      Cheer up, this is gonna stop as soon as the average american guy will be about as wealthy as the average Indian one!

      USA kept its higher way of life because it innovated so fast that no other country could follow. If innovation stops, then you go back with other countries.

    10. Re:Please explain.... by Tablizer · · Score: 2, Interesting

      But sooner or later the dollar will fall against foreign currencies -- as it is currently, btw -- and foreigners will begin to receive repayment of their loans to us, by way of American exports....

      But you are missing two important points:

      1. India's population is 3 times bigger than the US. They can suck our jobs and resources bone dry before it makes much of a dent there.

      2. After India is probably another country. India was first simply because they know more English.

      The bottom line is that brains are now a cheap commodity. Balance of trade won't change this new fact. The Age of Nerds is sunsetting. I thought AI would do it first, but globalism plugging into 5 billion brains for cents per hour is what did it. The inventors of the Internet created a monster which is now eating its creator.

    11. Re:Please explain.... by MotherInferior · · Score: 2, Insightful

      You haven't explained anything except just how bitter life can be. His question was how the economy will survive when there is no middle class. All of the men you described in your philippic were (and continued to be) members of a growing middle class. The middle class in America is slowly dying. This death is being accelerated by unpatriotic corporations that place their own profit margins above American economic health.

      That this fact has been true since the 70's does not make it right, or acceptable. Nor does it absolve us of the responsibility of getting off our apathy-encrusted asses and doing something about it.

      Life sucks. So what? It is we who do nothing to help our fellow man that make it suck.

      Smaller software companies will survive.

      This is the only thing you said which remotely gets to the point, and as such is interesting. Please elaborate.

  8. What's Left? by RickHunter · · Score: 5, Insightful

    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.

    1. Re:What's Left? by GnrlFajita · · Score: 3, Insightful

      You're just not looking at it in the long term. If everyone begins outsourcing to India, then the law of supply and demand requires that eventually the cost of doing this will rise. So they'll begin to outsource to some other, cheaper, country. The cycle will repeat itself until eventually the U.S. is the cheapest place to 'outsource' jobs to.

      It's all about perspective, man. Look at the big picture.

      --
      When we remember we are all mad, the mysteries disappear and life stands explained.
      Mark Twain
    2. Re:What's Left? by HarveyBirdman · · Score: 2, Funny
      Having trouble with this comment? Try the all new SarcasmDetector 0.8.2-b!

      Someone did. They modded you insightful :-)

      --
      --- Ban humanity.
    3. Re:What's Left? by PD · · Score: 2, Funny

      So what you're saying is that the future of our country depends on the entire population moving into trailer homes? And only then will we cheap enough in comparison to the rest of the world to get work? And only then can we get rich?

      Suddenly my stupid uncle living in the trailer doesn't seem so stupid. After all, he lives without working at all, while I bust my ass at a keyboard. I thought that I was living on the cutting edge of society. I was one of the first people with a computer in their home. I was sending e-mail when there were only 100,000 people on the Internet. I was using Linux when there were only 100,000 users. Little did I know that my good ol' Uncle Bob in the trailer wasn't a throwback, but that he was the avant garde of society. For the past 30 years, he's been trying to show all of us the way to live, pointing us all towards the future dream of a single-wide trailer and a rusty K-car out front. How did I get it so wrong?

    4. Re:What's Left? by alan_dershowitz · · Score: 3, Insightful

      There will be the people who own companies, and the service industry to maintain their lifestyle. Don't expect to get paid good for that either, since illegal and legal immigrants will do crap jobs for less money.

      You could learn a trade, but don't expect to work your way up to running your own business. Trades will be corporatized, so if you want to be a plumber you'll have to work for National Plumbers, inc.

      So, basically there will be a two class system, since they've effectively figured out how to eliminate the merchant class and the professional class.

  9. Dupetastic! by Anonymous Coward · · Score: 2, Funny

    How many times are we going to link to this article? Seven? Twelve? As many times as there are grains of sand in the Ganges?

  10. I for one... by Westech · · Score: 3, Funny

    Please to be joining me in welcome our hand-coding hundu overlords.

  11. Well, at leat the Malls will go under... by Saeed+al-Sahaf · · Score: 2, Funny
    the economy will survive, though your job, as it is currently, will likely not

    And how is this supposed to happen? Those who do not end up on the streets will be training as Fryolator operators working for enough money to pay the rent.

    The only good thing I can see out of this is that all the malls will close.

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
  12. Re:Note to fat USians by Diaspar · · Score: 5, Insightful

    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!!!

  13. Here come the lawyers by charnov · · Score: 4, Interesting

    I was just reading up on Sarbanes-Oxley compliance and how we have to be responsible for everyone who ever touches or affects our digital documents (and we are financially responsible for damages real or perceived). Our lawyers seem to think that if you read the law strictly (as any lawyer trying to sue would) that means that any offshoring that results in any damage or dissemination of data could cause us an enormous amount of money. We already carry a $100 million bond against accidental release of data (we deal in multi-billion dollar international contracts) and our carry gave a big 'NO" to outsourcing in any way shape or form. Hell, I can't even get opensource software in here because if something goes wrong, there is no one to sue.

    Crazy world...

    --
    [RIAA] says its concern is artists. That's true, in just the sense that a cattle rancher is concerned about its cattle.
  14. Worrisome by dustmote · · Score: 4, Insightful

    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
  15. If my job is going away soon... by Arslan+ibn+Da'ud · · Score: 3, Funny

    can I get a job as a Slashdot article duplication identifier?

    --

    Practice Kind Randomness and Beautiful Acts of Nonsense.

  16. Cry me a river by Anonymous Coward · · Score: 2, Insightful

    I'll shed a tear for the American Programmer the day the American consumer sheds a tear for the sweat shop laborer that made the overprices POS shoes you can afford to pay gross markups for from the likes of Nike.

    Your country profits from the exploitation of child labor and people caught in poverty traps... You there, unemployed developer, reading this... reap what you sow.

    1. Re:Cry me a river by orionware · · Score: 2, Insightful

      Except you fail to understand that the "sweatshops" are overrun by folks who want to work there because it's the highest paying job in the region.

      --


      Karma means nothing to me, so suck it...
  17. Makes me growl. by Faust7 · · Score: 3, Interesting

    The six Hexawarians are sympathetic but unmoved. They disagree with the very premise that cheap labor is hurting the US.

    Seriously, then they need a brain refresher. This is one of the core issues, and it's really simple: Companies seek to maximize profit and minimize expenses. Expenses decrease with cheap labor. If cheap labor is outside the U.S., and can be logistically implemented for the company as such, there's a good chance they'll move some operations offshore. And this has in fact happened.

    And they think it's somewhat laughable that, because things aren't going exactly our way, ordinarily change-infatuated Americans are suddenly decrying change.

    How on earth is this a laughable thing? Change for the better, change for our better, is a totally pragmatic and understandable goal. When this goal is hurt, yes, we decry it. There's nothing laughable about that at all.

    Translation: We're not just cheaper, we're better.

    Tell that to Dell.

  18. An indian perspective by frodo+from+middle+ea · · Score: 5, Interesting
    If all these jobs are related to call center, I say LET them NOT move to india.

    Yes you heard me , let them NOT move to india. The last thing I want as an Indian, my country to be columbia/mexico of the IT industry. I think indians should be ashamed to be the janitors of IT industry.

    Also for those of who are going to point to M$ and IBM and HP research centers being moved to India. I would rather see our own Indian companies becoming more self relient and working for the benefit of Indian consumers than US.

    The more India depends upon foreign lands to create local jobs, the less it becomes self relinet and lesser powerful.

    India for one should take lessons from its colonial past. Rememer East india company came as traders looking for spices and ended up ruling the country for 200 years. This time its going to be different, its economical slavery that we should be afraid of. In this day an age no power is better than economical power and serving joe six-packs for their problems loggin on to AOL, though a short term profitable business , is ruining the resourses of the country.

    I am not ranting against US. Infact exactly the opposite. The US and its companies should also strive towards self serving economical structure.

    --
    for the last time people, I am "frodo from middle eaRTH", not "middle eaST".
    1. Re:An indian perspective by phoenix.bam! · · Score: 2

      Way to stand up for your nation. Plus, no offense, but I want to hear an American on the phone when i call tech support because they are just easier to understand.

    2. Re:An indian perspective by stwrtpj · · Score: 2, Insightful
      Outsourcers come....
      I have 1 billion people, 200,000 jobs, and tax revenue of 1 billion dollars. I now have a huge net export of goods and services.

      Political climate in US changes ...

      Pipeline of jobs to India shuts down. Now you're back to 1 billion people, 10,000 jobs, and tax revenue of 100 million with which to feed them.

      things always seem alot worse when youre homeless and used to have a house than if youve been homeless your whole life

      Combine this with a shutdown of the job pipe, and you have a recipe for civil unrest.

      It is true that it is unlikely that the outsourcing will stop anytime soon. But no nation should rely on the bulk of their economy coming from a single outside source. Putting all your eggs in one basket is never a good idea.

      --
      Karma: Frotzed (mostly due to the Frobozz Magic Karma Company)
    3. Re:An indian perspective by Radical+Rad · · Score: 2, Insightful
      I like your attitude. India does not need people with post-grad degrees answering moronic questions at a call center. But America has an entire class of otherwise unemployable people who would consider that the pinnacle of their careers. In a perfect world, each job would be held by someone to whom it is part of their self-actualization.

      It seems as though Americans are being punished today for having forefathers who loved them and worked hard to give them a better life, because now the fact that our communities are relatively safe, sanitary, and aesthetic is a liability when competing for jobs offered by multinational corporations who pledge allegiance only to money.

    4. Re:An indian perspective by qtp · · Score: 2, Interesting

      I would rather see our own Indian companies becoming more self relient and working for the benefit of Indian consumers than US.

      No offense, but so would most of us American workers.

      India for one should take lessons from its colonial past.

      So should the workers in the west, during the hight of British colonialism, there was massive unemployment and poverty throughout England. As the American companies move to eliminate their workers jobs and outsource them overseas, I expect that we will see more of that here (like we did during the seventies with the offshoring of manufacturing jobs), but hopefully to a leesser extent.

      As much as American (and other westen) IT workers refuse to admit it, they are the serfs of the new economy, and as much as they dislike to hear it, that vendor you have been so loyal to is going to screw you the first chance he gets. Giving so much power to any single organisation is stupid. Bill and company can't wait to fuck you (loyal IT) guys, and are laughing at all of the demonstrations of loyalty that get thrown their way by IT folk who think they'll get to save their jobs by blocking every attempt to introduce some other option to the workplace.

      --
      Read, L
    5. Re:An indian perspective by donutello · · Score: 4, Insightful

      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
  19. Don't trip over the FUD by AndroidCat · · Score: 5, Insightful

    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.
  20. Re:Wow, deja vu!! by danormsby · · Score: 2, Funny

    Yea but the editor has been outsourced to India.
    What do you expect?

    --
    Omnis amans amens
  21. Hmmm by Pzykotic · · Score: 2, Insightful

    I don't agree at all with outsourcing IT to India. But can anyone cite examples that show beyond a shadow of a doubt that quality is lost? At indian callcenters, can they not speak english well and frustrate customers? Is their coding sloppy?

    If so, I do think this is just a "fad" that will die out once people start complaining on a huge level.

    I just hope it doesn't turn around like the car industry did, now american cars are (arguably) worse than chaper foreign cars, unlike 2 decades ago.

  22. This is programming by cubicledrone · · Score: 2, Insightful

    To export software or spreadsheets, somebody just needs to hit Return.

    That about says it all. No wonder it's so easy to fire people. "All you do all day is hit return!"

    This is what happens when people are asked to manage something they refuse to understand. Knowledge is destroyed and the economy is damaged. Think of the thousands of years and tens of millions of dollars worth of education that are being wasted right now.

    --
    Business isn't willing to pay for products, innovation and careers, so we get brands, mortgage commercials and layoffs.
  23. Here is your answer ! by BlueTrin · · Score: 2, Funny

    Well, actually we are mainly expanding overseas to cut the costs of production, but once everybody (middle and lower classes) will move in countries where there are jobs (oversea), the companies won't even have to pay transport as most of the customers will be in the countries oversea: even lower costs!

    --
    Don't you know it is now both immoral and criminal to think beyond the next quarterly report?
  24. Re:Choose One: by Dukael_Mikakis · · Score: 2, Insightful

    Well, I'd want to live in a world where I'm a tech company's CEO and rich as hell. I guess it'd be icing on the cake if everybody else was unemployed and poor so everything was cheaper also.

    And it follows: who are the ones in the company choosing to outsource?

  25. Stop government aide by www.sorehands.com · · Score: 3, Interesting
    Stop the government aide to the companies outsourcing to foreign countries. When a company outsources, we still allow them to deduct that cost from their federal (and state) taxes. Lets stop that.

    Have anyone considered the privacy and security issues when sending this information to foreign companies? The call center for American Express in India may not have the same security and legal protection for your records -- but then again with the patriot act, we don't have any privacy anyways.

    1. Re:Stop government aide by kippy · · Score: 2, Insightful

      Not just that, tax ths shit out of companies that outsource. If they're saving 50K per year, charge them 45K. Put it into a fund to generate domestic jobs via public works projects.

      lots of details to work out but it would slow job leakage and what does still happen would feed domestic job growth.

  26. Obviously this article is biased. by big-giant-head · · Score: 5, Insightful

    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.
    1. Re:Obviously this article is biased. by Free_Meson · · Score: 2, Interesting

      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.

      They're called lawyers, professors, researchers, and executives... If your software job gets outsourced, either go and work at a research firm/university where there is a need for custom software or a company that offers in-person support for law firms or other businesses... As for your complaint about outsourcing the production of consumer merchandise, even if all such production were outsourced it wouldn't mean negative growth. Through the power of lending we can increase our GNP completely through services. It seems counterintuitive, but you don't have to manufacture anything to have a high-growth economy. Anyway, once we reduce a practice from an art to a science, it makes sense to export those tasks to a workforce that has been more narrowly educated in order to develop new products or industries in this country. Jonas Salk wouldn't have cured polio working in the neighborhood textile mill...

    2. Re:Obviously this article is biased. by big-giant-head · · Score: 4, Insightful

      It is not resonable to expect every member of your society to be a research scientist just to earn a decent living. What we are gravitating towards is a society composed mainly of very poor people controlled by a few very rich people. When that happens you should review your French history particlulary the period from say 1780 through 1812, give or take a few years. Alternately look at Russian history from say 1905 - 1920.

      'They're called lawyers, professors, researchers, and executives.'

      Most laywers don't care one way or the other. Academics (professors) are fairly split over whether all this is a good idea. Executives love it because they give themselves fat bonuses with the money they make sending jobs overseas. Most researches are either blissfully unaware or are wondering when they will be outsourced as well.

      After all research can be done much more cheaply in India than here. PHD's grow on trees, no EPA to deal with, no FDA. Want to run clinical trials, go get some low caste individuals sleeping on the sidewalk and wala test subjects. If a few die no one will care. Point is, almost everyjob can be done overseas more cheaply, including yours, however we americans have to SOMETHING.

      In your world Jonas Salk would'nt have cured polio either, because his work could've been done more cheaply in India. Then the Drup company that paid for it could supply the vacine to the suffering masses at outrageous prices, and if some could'nt aford well, who cares, certainly not George Bush or his friends.

      Jonas Salk did what he did to help suffering people, not to help the corporate profit sheet.

      --

      So Long and Thanks for all the Fish.
    3. Re:Obviously this article is biased. by silentbozo · · Score: 4, Interesting

      Through the power of lending we can increase our GNP completely through services.

      And what happens when the Indians and the Chinese have absorbed so much of our know how through on-hands tech-transfer, that they don't need us anymore? Indian firms are already partnering with US drug companies, not as low-cost manufacturers, but as co-developers. Chinese firms are already buying whole US plants, lock, stock, and barrel, AND the company name/brands (ie, DustDevil). It wouldn't be too much of a stretch to imagine a future where the US is nothing more than a stock market, and a few banks - and what happens when foreign banks/stock markets adopt US style accounting/regulation, and start undercutting us?

      I think the key problem is that to meet the future you envision (ie, pure knowledge/research/services), we need to train people who are technically and creatively competent to work and innovate in those fields. I don't see that product coming out of our school system, which keeps churning out workers fit for that was hot 5-10 years ago, and not for what will be hot 5-10 years from now.

      We might benefit from deflationary pressures on foreign-made products and services for a long time. But we'll have become a nation of extreme debtors, with a bedrock in agriculture and finance, and everything else outsourced.

      While best will survive (ie, small machine shops, small coding shops, etc.), where will everyone else go? Unless we develop completely new industries that will require jobs in the US, we're going to have a large surplus of labor, just as we did in the 80's during the last big transition. Space exploitation maybe, or maybe US migratory workers going to Mexico and Canada, instead of the other way around?

      Ironically, I'd suggest that manufacturing might be the salvation of the US economy - provided that we can lower the cost of raw materials and energy. With mechanization reducing labor costs, cheap energy and raw materials would allow the US to compete with foreign manufacturers, and allow the employment of more US sale agents, distributors, transporters (ie, truck drivers and train engineers), and lower the cost of shipping those goods.

      In other words, you want more jobs in the US? Then we either need more nuclear power plants, or we need to invent working sustainable, net energy out fusion, quick.

    4. Re:Obviously this article is biased. by Free_Meson · · Score: 3, Insightful

      It is not resonable to expect every member of your society to be a research scientist just to earn a decent living.

      And what is a decent living? Americans have an incredibly high standard of living and, barring an invasion, they will from this point forward. The geographical advantages of the United States, combined with the incredibly high education rate, will ensure that the average American can feed and clothe himself with more disposable income left over than workers in most other countries, regardless of brute labor outsourcing.
      Just because you don't have the education to pull down a mid-6 figure salary doesn't mean the system is broken. If you don't like your job, get a new one or go back to school instead of whining about some guy in India who is better suited to do your job than you are.

      What we are gravitating towards is a society composed mainly of very poor people controlled by a few very rich people. When that happens you should review your French history particlulary the period from say 1780 through 1812, give or take a few years. Alternately look at Russian history from say 1905 - 1920.

      How can someone dense enough to think like this actually float? I know you're trolling, but I'll answer anyway. The United States has a far more even distribution of wealth now than Russia or France had during their revolutionary periods. It's less equal now than it was 5 or 10 years ago, but there are fluctuations up and down w.r.t. the distribution of wealth. Anyway, if you have a job, odds are you get paid a lot better than the military you'd be counting on to help you with your revolution, and whining to some soldier about how you're only making $20k more than them instead of $30k because you're no better educated than some guy in India isn't really going to win him over.

      Most laywers don't care one way or the other. Academics (professors) are fairly split over whether all this is a good idea. Executives love it because they give themselves fat bonuses with the money they make sending jobs overseas. Most researches are either blissfully unaware or are wondering when they will be outsourced as well.

      Whether or not these workers are aware of the situation has nothing to do with the fact that they are the "pure knowledge workers" that you claimed do not exist. Believe it or not, a company won't outsource their CEO's and it's not possible to outsource legal work. Our professors are the foundation of our economy and our researchers develop the technology that is new enough to manufacture profitably in the united states. The united states has the best higher education system in the world and, because of critical mass issues, this is unlikely to change. The pre-college education system in the united states is also much broader than it is in almost any other country, and while the graduates of most other countries' school systems have more developed skills, American graduates have a broader range of skills and knowledge, making them ideally suited to the entrepreneurial environment encouraged by the current economic climate.

      After all research can be done much more cheaply in India than here. PHD's grow on trees, no EPA to deal with, no FDA. Want to run clinical trials, go get some low caste individuals sleeping on the sidewalk and wala test subjects. If a few die no one will care. Point is, almost everyjob can be done overseas more cheaply, including yours, however we americans have to SOMETHING.

      The cost of the medical research you seem to be focusing on isn't product development, but FDA approval. Why do they get this? Because they want to market the drug in the U.S. They could sell the drugs in india much earlier, often ten years or more earlier, than they could sell them in the United States. This is why many patients awaiting unapproved medication go to mexican pharmacies when conventional treatments fail to cure them. Unsurprisingly, most of the research is conducted in developed countries, and b

  27. I just outsourced posting an insightful comment.. by cOdEgUru · · Score: 2, Funny

    to my counterpart in India. I hope he doesnt troll!

  28. All this talk about a new global economy by picklepuss · · Score: 2, Insightful

    One of my Co-workers and I were talking about this the other day. Truth is, we had some vendors come in who were bragging about their reduced costs due to outsourcing, and we had a teleconference with their engineers. We couldn't understand a single word they were saying. With what did filter through, we could tell we were dealing with a couple of extremely intelligent guys, but the communication gap was killing us. At the end, I just asked them to summarize everything in an email and send it to me (the email was very clear).

    But the thing that we kept going back to was the way salary and cost of living were related to location. The differences even in portions of the US is extreme (the wife and I were goofing off one day and found several places in the states where we could triple the size of our house and property for the price of our current place). I just don't see the world sustaining a global economy much longer supporting these kinds of differences. Eventually, everything must begin to even out. Their cost of living and salaries are going to eventually increase and ours will drop. The burning question in my mind is... How much? Will we have significant drops as they have only minor increases, or will they have major increases and our's drops a little. I'm not so much worried about finding a job... if you really want to work, you will work. I'm just worried about those unbalanced moments when the salary has dropped and the cost of living hasn't :-/

  29. Re:Note to fat USians by pcraven · · Score: 2, Insightful

    You could try making a sandwich and bringing it with you. I don't spend $7 on my lunch unless I go out to eat.

  30. Offshoring my own job by Nonac · · Score: 5, Interesting

    About a year ago I hired a developer in India to do my job. My employer is none the wiser. I pay him $12,000 to do the job I get paid $67,300 for. He is happy to have the work. I am happy that I only have to work about 90 minutes per day (I still have to attend meetings myself, and I spend a few minutes every day talking code with my Indian counterpart). The rest of the time my employer thinks I'm telecommuting. They are happy to let me telecommute because my output is higher than most of my coworkers.

    Now I'm considering getting a second job and doing the same thing with it. That may be pushing my luck though. The extra money would be nice, but that could push my workday over five hours.

    1. Re:Offshoring my own job by leerpm · · Score: 2, Funny

      Hmm. He's been doing this for a year. I doubt he is going to get caught.

      And if he did get caught, you know what they would probably do? Fire all of his co-workers, make him a manager, and get him to hire 5 other Indians.

  31. parallel example by theMerovingian · · Score: 4, Insightful

    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
  32. can we just open a Wired subsection... by mookoz · · Score: 2, Funny

    ...when each new issue comes out? Just post every big story at once and be done with this nonsense.

  33. And so it goes... unless we the people stop it! by SmilingMonk · · Score: 4, Insightful
    So it all comes home to roost, eh?

    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.

  34. interesting quote from article by avandesande · · Score: 3, Interesting

    So I toss a slur across her desk. I call her a protectionist.

    "Oh, and I'm proud of it," she responds. "I wear that badge with honor. I am a protectionist. I want to protect America. I want to protect jobs for Americans."

    "But isn't part of this country's vitality its ability to make these kinds of changes?" I counter. "We've done it before - going from farm to factory, from factory to knowledge work, and from knowledge work to whatever's next."

    She looks at me. Then she says, "I'd like to know where you go from knowledge."

    --
    love is just extroverted narcissism
  35. In the same issue... IP trade war by Flamingcheeze · · Score: 2, Informative
    Be sure to check out this article in the same issue about the coming IP trade war.

    It's a quick, interesting read, and very apropos to the current IP debate.

    --
    The Philosophy of Liberty | lewrockwell.com
  36. Outsource Everything! by MisanthropicProggram · · Score: 2, Funny

    Except Defense!
    Then, have corps. ALL OVER THE WORLD pay 40% income tax to the U.S. for the priviledge and pleasure of selling us their goods and services. This tax is then evenly distributed to all Americans. That way, we can just sit on our asses!

    --

    There is no spoon or sig.

  37. The automotive industry by Dr.+Evil · · Score: 3, Insightful

    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?

    1. Re:The automotive industry by Killswitch1968 · · Score: 2, Insightful

      You are missing a lot.

      Single income families have become double income families. How this is a bad thing I don't understand.
      REAL prices (adjusted for inflation) have steadily decreased. Income (and real GDP) have all been icnreasing. Standards of living are going up.

      Trade is, and always has been, a win-win scenario. Econ101 will tell you that.

      --

      Corporations: your universal scapegoat for all society's ills.
  38. Nerd Nation by cangeceiro · · Score: 2, Informative

    For those that might have missed it, nerd nation on tech tv had a special today on how india is training for many of the outsourced jobs they are now getting. One of the things i found interesting is how they are training people on american culture as well as tech skills so that they can better interact with americans on the phone. I highly recommend checking for reruns on this for anyone who is interested tech tv article here

  39. Re:Here we go again!!! by iggymanz · · Score: 2, Insightful

    How about the low-caste people in India? do they have any rights? Are we really helping the masses in poverty in India, or just benefitting a small amount of upper-caste people and allowing them to continue their oligarchy? Is there any incentive for the Indian companies to be honest about their capabilities, to keep our information confidential, to subject themselves to our laws & ideas of legality?

    I predict this will NOT work out in the long term:

    Indian companies will lie about their competency to get work

    They will sell proprietary information

    They will take advantage of no legal venue to steal & commit fraud & breach of contract

    they will employ people without regard to background problems, because there is no way to do meaningful background check in India

    the commnication, time zone, and cultural differences will cause customer alienation

    it will be found that the managers in the U.S. who recommended outsourcing are cooking the books to bury the true costs

    it will be found that high technology is leaked, given, and sold to terrorist organiations

  40. thank our tariffs on auto imports for those jobs by SethJohnson · · Score: 3, Insightful


    Those Japanese car factories are located in America because tariffs on imported cars make it more economically sound to build the cars in America. While you seem to be espousing free-market trade, you use an example that is in fact protectionist. You get rid of those tarrifs and those Toyota and Mazda factories will evaporate back to Asia.
  41. Countries and economies need to advance... by Osrin · · Score: 2, Insightful

    They need to ship the old, dead, non-growth skills out to lower cost economies that can sustain those types of job and then retrain the workforce to take on new challenges that help the country and it's economy on the road to growth.

    Nobody in the developed world needs to be developing code anymore, we need to use the minds we have for aids and cancer research, building hover bots and interactive hologramatic entertainment stations.

    As an individual it's a harsh world, industries are going to turn over faster and faster in the future, we have to be ready to retrain and move on.

    There is a reason why most European countries have worked hard over the last two decades to reduce the number of blue collar workers building cars or mining coal. This is just a natural extension of the same macro economics...a weak government will bend their policies and stop the flow of offshore low end jobs, a forward looking one will encourage it.

    Sorry, I'm in a funny mood.

  42. Eat rice. by xtal · · Score: 2, Funny

    I doubt you could eat $0.50 worth or rice, purchased in bulk.

    Need protein? Leave some rice out and kill the rats.

    I'm only half joking. Ha!

    --
    ..don't panic
  43. recent studies by geekoid · · Score: 2, Insightful

    have shown, that in a best case scenerio, after ALL costs are added in, its as expensive as hiring local talent. Usual it's more expensive, and the project failure rate is hirer, as well.

    There is a difference between manufacturing and software development, and to compare the two will lead to some pretty specious arguments.

    I have had the 'opportunity' to be interviewing for a job. In many of those interview, the subject of oursourcing has come up. In every one, there projects had failed, and internally, the project managment has started to prevent outsourceing do to its cost.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  44. Re:Think ahead by coastwalker · · Score: 2, Insightful

    The pace of change is hotting up and although there are new jobs in new industries - you wont get into them whilst ageist hiring policy is still the norm. Most high tech workers could easily adapt to working in Bio tech or whatever the next big thing may be - but you wont get in unless you graduated yesterday. This is a serious gap in all western economies, not only is it impossible to change professions but it is also - inevitably - impossible to retrain for new industries.

    So having thrown generations of highly skilled manufacturing workers into the trash we are about to throw generations of highly skilled high tech workers into the trash. Sadly this is not going to change unless people start getting organised and changing the way our education system and our businesses work.

    Outsourcing to developing countries addresses some of the wealth imbalances in the world and can only be viewed as a positive thing if their economies improve to the point where they can supply clean water to the whole population etc. However we should be looking for smart ways to help ourselves and since we have democracy this should be coming from our politicians.

    So far all I hear is a deafening silence, no change from when the manufacturing jobs went.

    Today not only can you not expect to have a job for life, but its doubtfull whether your particular skill and expertise will be needed in ten years time.

    --
    Facts are history now plebs have politics for religion on social media.
  45. A more appropriate title for this story by Clay+Mitchell · · Score: 2, Funny

    Jobs to India: A Second Look

  46. No by geekoid · · Score: 4, Insightful

    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 /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:No by donutello · · Score: 2, Insightful

      The only way the US will compete, ever, is if our standard of living drops...a lot.

      Or if the standard of living in India rises...a lot.

      --
      Mmmm.. Donuts
  47. Re:thank our tariffs on auto imports for those job by gengee · · Score: 2, Informative

    I don't believe that's true. There were voluntary export limits, between 1.5 mil to 2mil units, from the 80s to mid 90s. But ever since 1994, I believe, there have been no tariffs on automobiles.

    --
    - James
  48. Biased and misleading article by NixLuver · · Score: 2, Insightful
    This article presents information in a somewhat deceptive fashion. For one, it leads the reader to assume that a single programmer X replaces a single programmer in the US. This is not the case. There are several layers of 'glue infrastructure' - American reps, Indian reps, managers, etc.

    It also leads the reader to believe that the product is 'better' somehow. I can tell you from firsthand observation (as a user of several corporate applications, the development of which has been outsourced) that this view is simplistic at best and flat out wrong at worst. The poor communication across the Big Pond alone insures that there are more than a normal amount of bumps in integration.

    The thing that people miss is that there is only one source of new wealth. That is the labor of people who create something others will pay for. Any change in value outside that is inflation, pure and simple.

    We're steadily exporting everything Americans do that creates wealth, moving more and more of our population into 'service' jobs that are parasitic on the creation of wealth by 'producers'. We've moved out much of our manufacturing infrastructure, and corporatized our farms, the source of much of the wealth that made the US economy the powerhouse of the mid-20th century.

    Now, we've moved into the information age - leading the charge, as it were - and just as quickly as we can, we're exporting these positions that produce value as well. There can be some debate about whether or not IP is 'real wealth' in the sense of food or manufactured goods, but I don't think many will challenge the position that America's economy certainly depends on these producers.

    When all that is left is a chain of service (I wash your car, you serve John lunch, John cuts down a tree for Pete, and Pete fixes my deck), we're circling the drain, economically; with no infusion of new wealth, we're living on our savings.

    The failure of the "Globalization" process is that it's not India or America that benefits, but the CEOs of corporations; this increases the divide between the 1% that controls most of the wealth and the 99% that control 10%. If Nairobi happens to figure out how to put together a solid programming base next year, Bangalores' economy will be in the shitter overnight.

    The mutinational corporations (in the form of the most wealthy stockholders) are taking advantage of standard of living, population pressures, and the artificial barriers of visas, borders, and the like.

  49. My far-feaching, unlikely prediction: by sirReal.83. · · Score: 2, Insightful

    Many jobs will be outsourced. No, not just to India, but to anywhere labor is cheaper (Sidenote: I'd rather see white-collar jobs outsource to India than manufacturing jobs outsourced to children in Asia, which is now the norm). This includes coders, artists, writers, and their managers. Eventually, a few executives. This will mark the abandonment of America by a few, or many, large corporations. After all, the folks at the top of the chain, who make the real money, belong to no nation. They belong to their desires. America's economy will slowly deflate to a level more equal with the rest of the world, while nations with more jobs will rise a bit. Globally, I think this possibly will have an equalizing effect in general. But those with the deep pockets will greatly benefit. Otherwise, they wouldn't do it.

    The above stands for privately-owned corps. I have no idea what may happen with publicly-traded ones. It's obviously a bit more complicated.

  50. Obligatory Snowcrash Quote by saudadelinux · · Score: 2, Interesting

    "When it gets down to it-talking trade balances here-once we've brain-drained all our technology into other countries, once things have evened out, they're making cars in Bolivia and microwave ovens in Tadzhikistan and selling them here-once our edge in natural resources has been made irrelevant by giant Hong Kong ships and dirigibles that can ship North Dakota all the way to New Zealand for a nickel-once the Invisible Hand has taken all those historical inequities and smeared them out into a broad global layer of what a Pakistani brickmaker would consider to be prosperity-y'know what? There's only four things we do better than anyone else:

    • music
    • movies
    • microcode (software)
    • high-speed pizza delivery

    The Deliverator used to make software. Still does, sometimes."

    I suppose we'd better scratch "software" off the list, eh?

    --
    I didn't think the house band in Hell would play this badly.
  51. Please explain where this all ends by HangingChad · · Score: 4, Insightful

    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
  52. Big Picture by weston · · Score: 3, Insightful

    "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?

  53. Re:Note to fat USians by StupidHelpDeskGuy · · Score: 2, Informative

    I call bullshit.

    I work with some nice folks from over seas, so I have bit of an insider's perspective. A co-worker of mine, who's originally from India and I discussed this very subject just the other day.

    In our conversation we discussed the conditions of the average citizen. Specifically how it related to our own temporary employees. The company I work for does business with a rather large, shall remain nameless for the sake of objectivity and professional courtesy type of outsourcing firm. Among other things, we talked about the living conditions in her country.

    Narrowing our focus to the cities, where most of these jobs are located, I found out roughly how much it costs to rent an apartment, buy food, and so on. We compared those expenses with how much I am paying for my apartment, what food expenses were, and so on. Althought it's not very scientific, I was a bit shocked to find that the facts of the situation did not match my expectations.

    I was surprised to discover that not only did the employees doing work for us in India did not make enough money to be considered middle class, but they had relatively little freedom to change jobs. They recieve rent (four people to one apartment), food, and a salary. It's not that they are living in poverty, but by no means can they be considered middle class, even by India standards.

    The problem as I see it, is that people's entire lives are dependent upon their relationship to the outsourcing firm in question.

    Someone out there is making huge money off of this, and it's not the people who are actually working these jobs. People more knowledgeable, and wiser than myself have commented on the relationship our executives have with the outsourcing firm. I am not making any accusations, but I would love to see the actual data.

    I'm new to making decent posts, so if you got this far, thanks kindly for reading this, feel free to respond however you see fit. Thanks much,
    SHDG

    -kindly doing the needful since 1998

  54. Moral? Never Happened by FatHogByTheAss · · Score: 2, Informative
    Whatever happened to morals in the vision of Capitalism?

    It never existed, that's what happened to it.

    Today, shipping your job to India is immoral. A hundred years ago, paying women and children nothing for 16 hour days in the textile mills was immoral. 150 years ago it was the coal mines. 200 years ago it was cotton fields filled with slaves.

    Capitalism is inherently about competition, and in competition, sombody ultimately looses. The only way to fix that is to devise a system where everyone wins.

    Some guy won a Nobel based on work in that area. Made a movie about him, too.

    --

    --
    You sure got a purty mouth...

  55. Re:It's a risk that they think we can afford? by TheSync · · Score: 3, Insightful

    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.

  56. It's Our Own Fault, Programmers! by SparafucileMan · · Score: 2, Insightful
    WAKE UP! This isn't the 50's! It no longer takes any skill to write code for 90% of the world's applications! Programmers spent too much time and money writing code to make their code-writing easier, and now you're wondering why all it takes is a mouse and VisualBasic to write a production-level application. PROGRAMMING IS EASY! Which means you can a) try to code for NASA or the military, b) start your own company, c) move up in the corporate ranks where planning is more important than coding, or d) move to India.

    Corporations want code thats easy to write, easy to debug, has limited impact, and can be taught to anyone. This will allow them to still at least break even while reducing risk immensely, in turn increasing their profits elsewhere. THEY DON'T WANT YOUR PROGRAMMING SKILLS. (this is why IT is often billed as an "expense" rather than as an "investment" in most corporate accounting books)

    Face it people, RMS is right.

  57. re: Shawn & Jessica Nahasapeemapetilon by Anonymous Coward · · Score: 3, Insightful

    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.

  58. Brontitol by lactose99 · · Score: 3, Funny

    OBHHGTTGR

    Your reference to shoes brings to mind the Shoe Event Horizon from the Hitchhiker's Guide to the Galaxy's planet Brontitol.

    "The Shoe Event Horizon is now a firmly established, and rather sad economic phenomenon which, in future times will be taught as part of the basic Middle School Life, the Universe, and Everything syllabus. ...

    TEACHER: Stand up! Harsh Economic Truths, Class 17. You are standing up?
    STUDENT: Yes.
    T: Good. You are living in an exciting, go-ahead civilization. Where are you looking?
    S: Up.
    T: What do you see?
    S: The open sky, the stars, an infinite horizon.
    T: Correct... You are living in a stagnant, declining civilization. Where are you looking?
    S: Down.
    T: What do you see?
    S: My shoes.
    T: Correct. What do you do to cheer yourself up?
    S: I buy a new pair.
    T: Correct! Now, imagine everone does the same thing... everyone buys new shoes, what happens?
    S: More shoes.
    T: And?
    S: More shoe shops.
    T: Correct... and in order to support all these extra shoe shops, what happens?
    S: Everyone must keep buying shoes.
    T: And how is that arranged?
    S: Manufacturers dictate more and more different fashions of and make shoes so badly that they either hurt the feet or fall apart.
    T: So that?
    S: Everyone has to buy more shoes.
    T: Until?
    S: Until... everyone gets fed-up with lousy, rotten shoes.
    T: And then what?
    S: Massive capital investment by the manufacturers to try and make people buy the shoes.
    T: Which means?
    S: More shoe shops.
    T: And then we reach what point?
    S: The Shoe Event Horizon! The whole economy overbalances. Shoe shops outnumber every other kind of shop. It becomes economically impossible to build anything other than shoe shops.
    T: Now, what's the final stage?
    S: Um... every shop in the world becomes a shoe shop.
    T: Full of?
    S: Shoes no one can wear.
    T: Result?
    S: Famine, collapse, and ruin. Any survivors eventually evolve into birds and never put their feet on the ground again.
    T: Excellent! End of lesson."

    --
    Fully licensed blockchain psychiatrist
  59. Turd happens. by KrackHouse · · Score: 2, Insightful

    If you're saying that we should be paid more money for lower quality work because it hurts our feelings then you don't believe in capitalism. Yeah, I'm an American, and I'm aware of that fact that we've been overpaid for soo many years that we have developed a nasty sense of entitlement. I think that's the real reason we're not very popular abroad. We're the rich kid with the asshole dad.

    --
    What if Digg added local news and a Slashdot inspired comment karma system? ---
    http://houndwire.com
  60. Good GOD!!! by univgeek · · Score: 2, Informative

    Are you paranoid, and without a clue!!!

    1) Sure the low-caste people have rights. For the last 50 yrs, they have had 'affirmative action'. In Tamil Nadu, 70% of all college seats, government jobs are reserved for the lower castes. Any money flowing into India is going to be spent on essentials, and may be for a few imports. The money pretty much goes straight to the people, and not to some mythical upper-caste people.

    2) India has a pretty decent legal system. Not as bad as most other countries, or your the US's bosom buddies Pakistan. Why in hell does India have to have YOUR laws? Do you expect the UK to have your laws? Since you seem to be clueless, may be you think that Europe and the UK have American laws too??!!

    3) It's called a free market. So an Indian company cheats once. Do you think that they can get business a second time? Have you heard of companies needing references?

    4) Wht the f**k does a background check have to do with any of this? Are you subject to a background check when you join a SW company in the US?

    5) Customer Alienation - see free market, 3 above.

    6) Any imports that you do are a form of out-sourcing. Let me know when you refuse to buy a PS2, Toyota, BMW, Benz or Nokia.

    7) Sure high-tech was leaked to Terrorists - by your bosom pals the Pakistanis. Not by the Indians.

    Check up on your facts you troll....

    --
    All bow to his Noodliness!! His Noodle Appendage has touched me!
  61. Simple solution by Anonymous Coward · · Score: 4, Insightful

    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) .

    1. Re:Simple solution by Genda · · Score: 5, Insightful

      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.


      Your response is interesting, but moot... it ignores;

      1. Business will do what it bloody well feels like doing, and unless you write laws or change laws forbidding the export of jobs from the U.S., you can pucker up now, because those jobs will be gone sometime early tomorrow morning, and you might want to kiss them bye before they get on board that jet to India. Welcome to economics 101...

      2. The nature of software must dramatically change. Our hardware is thousands of times more powerful today than 25 years ago, but our software keeps finding new and horrible ways to piss away useful work, meaningful process, and sane cooperation between it's desparate parts. We as a technological community need to stop this incessant process of polishing turds for business people who have spent the last quarter century trying to carve up the IP universe so that they might better charge us for the bits of data flowing through the wires. Instead we need to actually begin to look ahead and design software that utilizes the tremendous horsepower now available in new and exciting ways, and truly lay down a pathway to creating externalizations of our own intellect, that we might begin to finally draw from our inventions that which we dreamed of when we first began this journey of conception...

      3. The use of software is soon going to be a diverse universe unlike anything any of us have ever imagined, from smart household appliances, to intelligence in your car's tires, to bioinformatics, and advanced modeling in proteomics, to 3-D interfaces designed to allow molecular engineers the needed tools to model nanotechnological systems manufacture. The stuff IT engineers do today is going to change tremendously over the next few years. How much of that should be outsourced? None? Some? All? The impacts of any of this stuff could be tremendous. How do you choose? What of software that writes software? What of software that converts human intent into meaningful instruction?...

      There needs to be a completely different model for the production of software. Maybe we need a guild. Maybe we need some sort of Protected Status, as a critical and endangered national resource. If American allows it's intelligence to emmigrate, it will ultimately collapse. We need to create an environment conducive to the growth and development of human intelligence through the medium of external process... it must ultimatele be unhitched from the profit motive because profit takes IT in stupid directions. That is, direction inherently contrary to the expanding expression of human intelligence. Business must benefit from the fruit of that work, and should therefore contribute to it's perpetuation, but IT must be free to grow where it needs to grow to address and resolve larger social and human problems. Problems supplied by business should be resolved, or problems should be refactored to prevent unseen conflicts between the business intent and larger social considerations (eg. don't give a businessman a working program to run a fusion reactor that is itself poorly designed and will make a 6 kilometer crater when first tested.) Let collaborations between software engineers, social engineers, mathematicians, cosmologists, anthropologists, philosophers, artists and asthetics, architects, business visionaries, and financial planners occur, in fact make them occur. Generate societal infrastructure to make the creation, management, flow, storage, and utilization of information, in all it's forms consistent, seamless, and transparent to the average citizen. Begin laying down a future by design, as opposed to one that is mindlessly sputter blasted across the scenery.

      Use labor resources around the world, but make sure tha

    2. Re:Simple solution by graphitemessiah · · Score: 2, Insightful

      I just wanted to address your first point. The military, in fact, has had a push for years to use cots (commercial of the shelf) products for even the most critical applications. While much is still produced in house, more and more is bought as-is from private companies. I would assume those other industries you mention would be no different.
      My point being that these types of jobs are far from secure.

  62. Re:Note to fat USians by Rallion · · Score: 2, Insightful

    The problem as I see it, is that people's entire lives are dependent upon their relationship to the outsourcing firm in question.

    That pretty much sums it up, doesn't it? Honestly, where the hell is that more than $50,000 they save on each and every outsourced job? It's disappeared! People complain about the $8,000 per worked put into the Indian economy, but the disappearance of that much larger sum is a much greater issue.

    Hey, it could be put to use giving an American another, slightly-lower paying job! Would anybody have a problem with that?

  63. Is if you are goof by Sycraft-fu · · Score: 2, Insightful

    Basically, what I consider to be one of the most important things these day is to be a bit-head, to steal a term from a friend. This means someone that LIKES working with computers and does it for fun. Someone who is intrested by how they work and teaches themselves, who reads computer news to keep up with trends and so on.

    The other important thing is good problem solving skills. When you have to write something new and different in code or when you encounter a new problem, can you sit down and solve it efficiently, or do you just give up when it's not covered in the book.

    If someone likes computer and is a problem solver, then they will probably do well.

    However, if you are going into it just for the money, you probably shouldn't. Why? Because likely you will be value-wise on par with the bunches of people in India, only they charge less than you.

    The tech market does not need, and these days for the most part won't support, poorly qualified people who just took the job because they thought there was money in it.

    As for experience, you do like all other jobs: Get it slowly. The whining you hear from people on places like /. is a result of those that would like to grab a couple certifications, a minimal amount of experiecne and have a great job. Doesn't work that way in IT, or most any job.

    So start off with something that doesn't require much experience. Maybe a student job at the school you go to doing something simple like helpdesk. Once you get some experience, you can try for a bit better job that requires more experience (and will give you more skills). Just keep moving up. YOu will also find this is quite possible in a company. You get hired to do helpdesk stuff but prove you are competent and willing to be a system guy, you have a good chance of getting it next time a job opens up.

    There are very, very, very few industries where you simply get trained and then get a top level job making lots of money. You start small, then as your skills and experience build, you move up.

    I have a friend that started working as a student in the finincal division of our campus's network operations team. He showed a great proficiency with computers and an intrest in networks, and got a staff job after a while. He started as a low-level systems guy doing Windows support. As he learned more about the network and got more skills with it, he shifted over there and continued to be promoted. Now, he's the technial leader of network operations, head of the network, and a CCIE. In a year or so, he'll probably leave for priavte industry (since the university has a much lower pay scale) and be looking at $150,000+ per year. It didn't happen overnight though, he worked and learned to get where he is.

    So you can do the same, but you need to be willing to work your way up, and be able to do your job well. An associates degree and a couple certs will not get you a great job, they will get you a starting job that will allow you to work up to a great job.

  64. Poverty factor by RogerBacon · · Score: 2, Insightful
    You can own an entire indian family for $1000 per year. Husband, wife, two-three kids. They all work for you--all day--and live in a hovel out back. For $22,000 you live like a king. Of course your meals cost 50 cents. The people who make your meals make $400-$500 per year.

    India, like Africa, is founded on a deep and utterly degrading exploitation that Western Europe has never experienced. The professional classes there see it every day, wallow in it, and turn their eyes away from it. We can compete with the Indians as long as we are willing to drive wages for those below us down to $100 per year, watch them live and die in squalor, and in general, reengineer our society back to levels of exploitation never before considered tolerable in any Christian country anywhere.

    Gentlemen, I have been there. I have stepped over dead bodies in the streets of Calcutta and Chittagong. I have seen women whoring themseves to pay off their husbands' debts of as little as $200 to $300. I have seen women bought and sold over there for $100, and happy to BE sold when they were released from sexual bondage with a $500 dollar bonus. I have seen children of four and five who were deliberately mutilated by removing fingers, hands, eyes, and feet, to make them more "attractive" as beggars.

    Look at the Indian programmer next to you. They all know this. They have walked past these children each day. They know this happens, and they have done and will do nothing about it. They are Hindu and Muslim, Jains and Sikhs, Brahmins and Untouchables (yes, they still exist and are still untouchable!) and their cultures accept poverty, squalor, and exploitation as a natural part of life.

    This is not Japan, a first world monoculture in which everyone is treated the same and there is no one to exploit. This is the third world, with a thin veneer of civilization over an inflamed suppurating wound of humanity. No unemployment pay. No social security. No safety net. No doctor. No lawyer. No reading. No writing. No clean water. No clean water or soil standards. Gentlemen, India makes Mexico look like a worker's paradise.

  65. Re: Shawn & Jessica Nahasapeemapetilon by Shakrai · · Score: 5, Insightful
    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.

    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.
  66. Hypocritical by slockhar · · Score: 2, Insightful

    It's funny how we want this great "global economy" when it works for us. However, the very second it works to the others' advantage, suddenly it's a bad thing. Fruit, steel, lumber, it's all out there.

  67. Re:Note to fat USians by FosterKanig · · Score: 2, Insightful

    Yes, but India's movies suck. Big time. I mean they are crap. Worthless. Shit. I would rather vomit up puppies spiked with large metal spikes, then have to watch any fucking Indian movie ever again.
    Puppies, with spikes driven through their skull and abdomen. Swallowed down my throat. It's so much easier than watching a fucking Indian musical.
    I'm gonna need some Bactine.

  68. You can't say it often enough, so say it again by Reziac · · Score: 2, Insightful
    A particularly telling quote from the article:

    "Don't you think we're helping the US economy by doing the work here?" asks an exasperated Lalit Suryawanshi. It frees up Americans to do other things so the economy can grow, adds Jairam.

    It frees up Americans to "do other things" -- such as what? Pick cotton? Flip burgers?? These minimum wage jobs help the economy grow how??

    Another exchange that sums up the problem:

    "But isn't part of this country's vitality its ability to make these kinds of changes?" I counter. "We've done it before - going from farm to factory, from factory to knowledge work, and from knowledge work to whatever's next."

    [Senator Turner] looks at me. Then she says, "I'd like to know where you go from knowledge."

    Apparently, one goes back to general labour (farm work or flipping burgers). Except those jobs are already overflowing with illegal aliens. So what is an unemployed citizen to do??

    --
    ~REZ~ #43301. Who'd fake being me anyway?
  69. Sorry to piss in your cornflakes, but... by IANAAC · · Score: 4, Informative
    The agricultural period lasted about 100 years, the manufacturing period lasted about 40 years, and the IT period about 20 years.

    Everything you mention above is still alive and well in the US. Perhaps not in the form you're thinking, but definitely alive and well. And guess what? Agriculture, manufacturing and IT have all overlapped in certain parts of the business process. Being an admin for a biotech company, I can tell you first hand that all three are pervasive in this industry.

  70. Outsourcing is progress by Zhe+Mappel · · Score: 2, Insightful
    Unless you believe that progress will come to an end, you can rest assured that things will work out in the long term.

    What is this "progress" of which you speak, my friend?

    Outsourcing, for instance, is progress. Outsourcing represents progress for capital. Capital, having found a new lever to maximize returns, now sends American jobs to India. By any rational measure, that is progress -- for capitalists.

    But social progress for Americans it definitely is not. What is in America's larger interest here? Greater wealth for its tiny number of investors? Or the expansion of its middle class even at the expense of greater wealth for a few?

    On these critical questions, capital is answering with a resounding, Screw you all! I'm off to India! But no sane society can accept such a verdict from its elite.

    The time is nigh for those of you who have cast your lot with right wing politicians and the debased libertarianism of Wired to rethink your mistakes. You had your fun in the 90s pretending the market would roar forever, and you swallowed load after load from the likes of Gilder and Friedman. Well, it didn't; it won't again like that in your lifetime; that dream is over. You've been had. Worse, now you are facing irrelevance. You are being replaced, and your erstwhile prophets are telling you it's inevitable.

    So! It's time to wake up and ask: how can you afford your right wing lifestyle when you're flipping burgers? You are at a crossroads, and the ethos of unbridled greed has sold you out, so now what will you do? There is an election coming; think about it.

  71. Thermodynamics as applied to economics... by Genda · · Score: 2, Insightful

    Nature abhors a vacuum (apparently except the one between our president's ears.) Our current political system is tuned to give big business anything it wants, and what it wants is cheaper labor. Add the magic of global communication and suddenly you can find great talent in countries whose labor costs looks to us more like fast food service.

    What they don't say or don't get is that this is an unsustainable ecology.

    For the last 150 years, America has been hard at work building an economic vacuum outside it's borders. We built through trade control, an artificially high wall to keep wealth and resources inside our borders, in effect a dramatic pressure differential. During the 1980s the seal on that vacuum was broken by providing support for, and even encouraging the globalization of American corporations. Once these businesses began to establish themselves beyond the reach of American government, they began to lose any sense of accountability to the country which spawned them, and the standard pressures of business dictated that they use foreign resources to compete in a global market.

    Since then, such programs as Nafta have made the breach in our economic system huge. The flow of wealth out of our country in now an exploding torrent. This is simple thermodynamics. Without sufficiently strong barrier to create an artificially high standard of living for our populace, the tendency is for our wealth to rush out into the world. Combine a tremendous trade imbalance with vanishing wage opportunity, manufacturing, then IP production, and finally services, and wealth go only go one way. This process will repeat itself at every level... India is now outsourcing to China, because it is cheaper for Indian business men to use even cheaper Chinese labor, than to utilize their own countrymen. So a cascade of wealth gushes from our shores leaving behind an American economy that'll ultimately reach equilibrium with the wealth in the world.

    This is the scary part. People used to having the highest standard of living on the planet are about to discover that the distance in quality of life between themselves and a Ethiopian goat herder is about to shrink dramatically. In fact, this terrible problem our nation currently has with obesity, is almost certainly about to be a problem of the past. The wonder of Walmart only works as long as you have a realtively wealthy middle class to support the economics of tremendous consumption. When the masses are reduced to minimum wage incomes...

    1. People can't make a living wage for themselves let alone their families...
    2. People are forced to use wellfare to supplement their income for basic needs, and services...
    3. The tax base for the Government collapses...
    4. Wellfare vanishes, leaving the entire population without critical resources, and services...
    5. The economy implodes. Deflation, depression, mass riots, revolution...


    6. Here's the biggie... The world economy as we now know it collapses. Without the economic engine (America) powering tremendous economic flow through other nations... business falls to the dance between western nations and the new economic engine (China), and China just isn't built to provide (or is even interested in building) the kind of broad economic growth worldwide that America has over the last half of the twentieth century. American then begins to hemmorhage it's talent to Europe, and the Far East. Leaving it a third world nation not unlike Ireland before the tech boom.

    The last nail in the coffin, is that the wealth as it flows from the U.S. is being concentrated into the hands of a very few. When this process is complete, a significant amount of the world's wealth will lay in the hands of a very tiny group. Much more wealth, much more concentrated than it is even now. The kind of wealth the moves countries, and controls governments. We can expect that the standard of living for the typical world citizen will be very low. We can expect that Americans will share that fate. We can

  72. Rubish. by jotaeleemeese · · Score: 2, Insightful

    Modern software is designed with resuse in mind.

    Do not invent the wheel.

    If you are trying to re-invent it the one that is completely out of toucvh is you, not your Indian counterparts.

    --
    IANAL but write like a drunk one.
    1. Re:Rubish. by wideBlueSkies · · Score: 3, Insightful

      >>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?
  73. Same jobs, dumber, you'll become cheaper.... by jotaeleemeese · · Score: 2, Interesting

    People in the US will intially become unemployed. Some, not all of you, don't be silly.

    That means less purchasing power, economic slowdown, trade deficit.

    Salaries by necessity go lower. Your currency devalues.

    Then there is a point in which you become cheap enough to be worth to invest again in the US.

    Painful? Yes, but frankly some evening out is necessary when you realize how much overpaid people in western countries are.

    The wasteful SUVs, gadgetery, cheap air travel, cheap credit can't be artificially provided, you will not starve but will need to become more sensible about your spending habits, which is a good think in my book, since that will allow you to take a lower salary and thus become more competitive in the global market.

    It is not going to be fun, but frankly better understand the situation and prepare for it that moan and advocate for supporting inneficient industries and companies only because they are base in your own country.

    --
    IANAL but write like a drunk one.
  74. Some facts by manavendra · · Score: 2, Informative

    Having been on both sides of outsourcing (working in India on jobs that were outsourced and then having worked "onshore" on "onsite" as a permanent employee with software organizations), AND being a one-time failed business owner who tried to work his way around outsourcing, here are few things I would like to mention: 1. Outsourcing revolves solely around money. Any organization in the west, relies on outsourcing only as a means of reducing cost. This viewpoint may attract a lot of flak, but thats the bottomline. 2. Having outsourced, or wooing the employeers/stakeholders about outsourcing, the management then espouses other "benefits" - the large english speaking skill pool, low cost, high degree of enthusiasm, deep processes, etc. 3. Once outsourced, the problems begin to crop up: + They don't understand the overall picture. Most times they are not even bothered about the overall picture. + "Isolated" skills - Once you find the programmers/team members of your choice (and I must say, its a tedious process getting your choice from the "large pool"), you realize they don't know anything beyond their programming language/platform + Non-existent design skills - as pointed by someone else, either the design skills don't exist or they try to get around by re-using/adapting stuff available by few searches on google. + Unrealistic estimates - I have yet to come across a single venture where outsourced business units managed to meet the committed deadlines. Sure things go wrong, but hey, whatever did happen to keeping adequate buffers and/or checks and balances to inform what's going wrong or went wrong? + Tedious process - I love the detailed documents they keep and maintain regularly. I love the weekly reports I got. But the entire process is so blooming disjointed, one has to trudge through a heap of documents before tracing anything. + Last minute reporting - Heaven forbid if you have your timelines dependent on release (say, a roadshow/conference). Everything will be "on schedule" till last week, when suddenly you'll find 40% of stuff is buggy, another 15% incomplete Now from their perspective: + Hungry for projects - No matter what anyone says, getting a project is not easy. There's fierce competition driving down prices and they go to any extent to get the project. Which is good in a sense, but this also leads to classical overcommitting. + Customer apathy - most times, the customers simply want a piece of work done. Attempts to become a part of the process, or relate to the process/project are usually ignored, or declined politely.This apathy finally results in being concerned with just delivering. + Cultural and other differences: The client being the prime stakeholder, knows exactly what he/she wants. However, no matter how deep and detailed the requirements documents are, it is very difficult to convey the need. A true match is reached only by following an iterative process, which, funnily, most customers are averse to doing in an outsourcing model (no matter if they used to follow that in house)! + Customers concerned with just delivery - I've been witness to several customers who, after outsourcing, believe the unwanted baby is no longer their problem. Let the outsourced company handle it - we just want the end result. Hordes of emails asking more information, help, advice, comment are ignored, or delayed. While the outsourced team is waiting for a response, the clock keeps ticking and the deadlines keep looming. Caught between a rock and a hard place, they implement whatever they know, however they know. + IT skills and courses may teach you a certain skill, but they don't imbibe in you the principles that make a good design. Its something to learn yourself, or pick up from analyzing, evaluating other designs. Which takes time. But sadly, the best pool of programmers with such skills chooses to migrate to greener pasters (read USA). Besides, most customers in outsourcing, still have the labour market perspective - define the job yourself, let the outsourced chaps complete it. While the economics will kee

    --
    http://efil.blogspot.com/
  75. Tired of the exageration by kbarnesx · · Score: 2, Informative

    As a US expatriate (of US origin) living in Bangalore and setting up a software company here, it gets tiresome to here the continuous exageration about the price differential between the US and Indian workers. In the article, things like taco bell wages and 1/6th the rate were mentioned. This isn't the real story.

    Bangalore rates are between 3-14 lakhs/year which comes to about $7000 to $31000. While $7000 may be a small fraction of the US rate, this is for someone with a junior college level of skill who has just graduated. Within 8 years they are over $20,000. probably about 1/4 of a US equivalent.

    On top of that, most US firms aren't paying that rate. From a fully burdened perspective taking in to account communications, travel and other overhead, most companies are pretty lucky to get a 3 to 1 ratio and 2 to 1 is probably closer to correct.

    What's more, they are already scraping the bottom of the barrel for available talent. I take interviews every day with people who are WORKING engineers with a junior college level of education who can't answer very simple programming problems. The best people will ask you straight out for 30% more than their last job which they've had for only 1 year.

    The assumption that India can continue to take jobs at the rate it has is absurd, and the upward pressure on rates will make it less attractive as a destination in the future.

    There are many GREAT engineers here, and they work for a fraction of the US rates, but extrapolation is the tool of the devil. Let's stop all this end-of-the-world talk.

  76. Re:Some facts - woops by manavendra · · Score: 2, Informative
    forgot the html comments..here's the re-post:

    Having been on both sides of outsourcing (working in India on jobs that were outsourced and then having worked "onshore" on "onsite" as a permanent employee with software organizations), AND being a one-time failed business owner who tried to work his way around outsourcing, here are few things I would like to mention:
    • Outsourcing revolves solely around money. Any organization in the west, relies on outsourcing only as a means of reducing cost. This viewpoint may attract a lot of flak, but thats the bottomline.
    • Having outsourced, or wooing the employeers/stakeholders about outsourcing, the management then espouses other "benefits" - the large english speaking skill pool, low cost, high degree of enthusiasm, deep processes, etc.
    • Once outsourced, the problems begin to crop up:
      • They don't understand the overall picture. Most times they are not even bothered about the overall picture.
      • "Isolated" skills - Once you find the programmers/team members of your choice (and I must say, its a tedious process getting your choice from the "large pool"), you realize they don't know anything beyond their programming language/platform
      • Non-existent design skills - as pointed by someone else, either the design skills don't exist or they try to get around by re-using/adapting stuff available by few searches on google.
      • Unrealistic estimates - I have yet to come across a single venture where outsourced business units managed to meet the committed deadlines. Sure things go wrong, but hey, whatever did happen to keeping adequate buffers and/or checks and balances to inform what's going wrong or went wrong?
      • Tedious process - I love the detailed documents they keep and maintain regularly. I love the weekly reports I got. But the entire process is so blooming disjointed, one has to trudge through a heap of documents before tracing anything.
      • Last minute reporting - Heaven forbid if you have your timelines dependent on release (say, a roadshow/conference). Everything will be "on schedule" till last week, when suddenly you'll find 40% of stuff is buggy, another 15% incomplete!

    Now from their perspective:

    • Hungry for projects - No matter what anyone says, getting a project is not easy. There's fierce competition driving down prices and they go to any extent to get the project. Which is good in a sense, but this also leads to classical overcommitting.
    • Customer apathy - most times, the customers simply want a piece of work done. Attempts to become a part of the process, or relate to the process/project are usually ignored, or declined politely.This apathy finally results in being concerned with just delivering.
    • Cultural and other differences: The client being the prime stakeholder, knows exactly what he/she wants. However, no matter how deep and detailed the requirements documents are, it is very difficult to convey the need. A true match is reached only by following an iterative process, which, funnily, most customers are averse to doing in an outsourcing model (no matter if they used to follow that in house)!
    • Customers concerned with just delivery - I've been witness to several customers who, after outsourcing, believe the unwanted baby is no longer their problem. Let the outsourced company handle it - we just want the end result. Hordes of emails asking more information, help, advice, comment are ignored, or delayed. While the outsourced team is waiting for a response, the clock keeps ticking and the deadlines keep looming. Caught between a rock and a hard place, they implement whatever they know, however they know.
    • IT skills and courses may teach you a certain skill, but they don't imbibe in you the principles that make a good design. Its something to learn yourself, or pick up from analyzing, evaluating other designs. Which takes time. But sadly, the best pool of p
    --
    http://efil.blogspot.com/
  77. Re: Shawn & Jessica Nahasapeemapetilon by Zak3056 · · Score: 2, Interesting

    I even wound up talking to India a few months ago while trying to order a replacement power supply and bigger Hard Drive for a Latitude laptop. Dell outsourced (or used to anyway) the SALES department for laptop components.

    I work in a 2-man IT shop with around 75 users, and I have my own Dell sales rep, who has her own team of specialists. When I want something, I talk directly with one of them.

    You're a corporate customer with an IT department big enough to have its very own PHB, and you're ordering through the normal sales channels? What gives?

    --
    What part of "shall not be infringed" is so hard to understand?
  78. Re: Shawn & Jessica Nahasapeemapetilon by Punk+Walrus · · Score: 2, Insightful
    [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."

    I hate to burst your bubble, but that's not an Indian problem, that's a competence problem. Way before outsourcing to India started, I was having the same problems with Good-ol-American tech reps from time to time. People who lived off of call scripts and laminated notebook pages. Not only that, many of them were rude, too!

    Also, I have seen videos of these people. Many of them don't have the *slightest* Indian accent. Some are even taught to mimic Minnesotan accents, southern accents, you name it. That guy "Mike" could have been from "Texas," a small shanty town named for convenience in trade (in Japan, there is a town called Usa, in the Oita Prefecture, for instance, as in "MADE IN USA!"), or he could have just been outright lying to you, knowing he'd get abuse if he said, "No, I am from Jaipur, sir." He did say he wasn't from the US in your example, but I don't know if you meant that if he was Texan, whether he considered Texas not part of the US because he was being state-centric, or just really uneducated.

    These Indian aren't dumbasses, either. Those images of brown-skinned people wearing wrapped cloth around their groin is inaccurate to modern India. They are hard-working, well-educated, quality-focused people. Maybe you didn't mean it to sound this way, but a lot of the comments in this Slashdot thread sound a bit like racism, or at least living in some stereotype of a universe where Indians are portrayed as a mass of unwashed dumb third-world people. How many people here have actually BEEN to India? Like outside the tourist areas? India has many subcultures, just like the US. Indian exists outside of New Delhi, it's a big country with a lot of people.

    But aside from all that, the article mentions that even they know they will be outsourced someday. I have worked Internationally, and I know the conditions in some of these countries aren't so hot. All they have to do is pick a war with Pakistan, and BOOM... there goes all that outsourced talent. We used to have a site in Afghanistan under the old Taliban rule in the late 1990s, and we constantly lost contact with it because of all the local fighting. "Sorry, the phones are down, someone cut the cable... again."

    But in the long run? It's inevitable. Complaining just slows me down and prevents me of thinking of where to go next.

    at least I'll have an American to yell at on the phone if anything goes wrong.

    And where do you think this "American" comes from? Unless he's Native American, like Pawnee or Dakota, I can bet this "American," including you, have roots back in another country. Maybe even as close as 2-4 generations back, your anscetors were Irish, German, or Italian.

  79. Re: Shawn & Jessica Nahasapeemapetilon by Punk+Walrus · · Score: 2, Insightful
    No, I assure you that is an Indian problem [....] no level 1 American tech would be so stupid as to keep insisting that you insert a CD into a computer with a dead power supply.

    Your faith is inspiring, but my experience differs, and I used to train people on the phones for an ISP. I had one guy, for instance, who blamed all modem outages with, "Was there a lightning storm in your area in the last month, sir? Well, your modem is fried..." He was from Virginia, not India, so I still don't know how that example could be an "Indian problem." Now, if he said, "Have you had any monsoon weather?" or "Did you ask her holiness, Sri Sri Mata Amritanandamayi Devi, what she thought?" Now THAT would be more related to an Indian cultural miscommunication.

    Go ahead -- keep outsourcing all the middle-class American jobs.

    You can't look at it that way. Read the article. You can't outsource everything. Until they build really good remote controlled robots, they still need lots of hardware people, designers, and so on. All the grunt, back-end work is being done outside the US. Our goal is not to make sure everyone stays dumb and doing the same thing, but to educate people so they can get better jobs. Bettering yourself is the American way. Keeping everything the same and safe is more of a socialist way, and it's not doing France very much good.

    All of these companies will screw themselves when there is nobody left to buy their products.

    Then they will go out of business, and the outsourcing problem is moot. But in reality, those who outsource will save a TON of money. Pay a programmer $75,000 plus expenses, or pay three programmers $8,000 a piece and let another company worry about the free coffee? Dude, business wise, it's a no-brainer, and whether we like it or not, it's going to happen. Those companies that stay domestic will not be able to compete. Take the computer you are typing on right now. Who made it? Some US factory worker getting paid Union wages, or some factory worker in Taiwan, getting paid less a day than you paid for your lunch today? Say WidgetCo tried to make all their computers in the US. It would cost about $5000 to make one, once you factor in wages and changing the current supply line to the US (with tariffs, shipping, containment, storage, EPA, etc.). Get some people to do it in the Philippines, and that cost drops dramatically.

    Like it or not, global labor is a commodity, like rice or orange juice. And no matter how tight we close our eyes, or shut other countries out with laws and trade discrimination, they are coming, and we can't stop being global if we're going to survive. Just look at China, as an example of not only the hypocrisy of xenophobia, but how it's hurting them as well.

    If you want to stay the same, Sweden might be a great place to move, if you don't mind the huge tax rate such a "cradle to grave" policy must endure. But they do have a lot of great historical "living factories" and so on. I have been there, I know, and those who work at such places are as enthusiastic about things like centuries-old linen mills as you are now about IT jobs. Where did all the Swedish people go when linen production and distribution moved to another country? Just whither and die? No. They got other jobs, and I would never call Sweden a country of piss-poor unemployed people. They have a very high standard of well-educated living.

    I know, you're scared. I'm scared. The IT industry is scared. But we will survive. Have faith in America, as well as your own ability to adapt. Don't waste your time with clutching your knowledge like handfuls of sand, but spend time figuring out what to do next.

    Change, as they say, is inevitable.