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Builder.com Writers Outsourced to India
An anonymous reader writes "Builder.com, which is part of CNet.com, is now outsourcing some of their writing to India. The funny thing is, the editor claims it's not as much about money as because he's 'getting a better interface with producers of the content.' He claims CNet isn't giving up control, but if they're the publisher, and he's the editor, and they can't hire and manage their own writers, why shouldn't the Indians just put up their own website to replace CNet, and we can all read what they write direct? I mean, we're all going to be buying software direct from Indian companies soon, so why not?" Newsforge and Slashdot are both part of OSDN. OSDN also runs sites like devchannel.org which are more-or-less direct competitors of builder.com.
They would outsource Mr. Fancy Pants Editor and his bosses. Clearly the big bucks are going to these guys. If the writers can live on $1.00 per day in Bangalore, surely then can management live there on $2.00.
Where are the new jobs going to come from?
What should people train/retrain for?
You also forget to point out that most of the new jobs being created in the US to replace the outsourced jobs do not pay nearly as much nor do the have near the same level of benifits.
People who support offshoring of everything need to realize that it can not continue. The USA can not survive if most of our high paying jobs go away. Cut peoples incomes enought and they go from being tax payers to tax consumers (and they will elect people who will keep the money coming).
I can understand the frustration, but that statement is quite misinformed, it seems.
From what I have seen, it seems that Indian companies, not just in the computer software/IT industry, but in almost every industry, has always been and for the forseeable future will always be sub-contracting for US and European companies.
Of coure, there will always be exceptions, but that would be a very small minority.
This means that the profits will stay in the US/Europe.
It is a lot like Chevy trucks being made in Mexico. Does anyone say we will be buying trucks direct from Mexican companies soon.
Or say, Chinese products, I have seen a lot of product 'Made in China', but very few from Chinese companies.
I am by no means supporting outsourcing or anything, I am just pointing out that it will only benefit US companies.
If you're in highschool, here's a serious suggestion from someone who's about to enter the workforce from college-
Find some skills other than computing.
No, seriously. Computing is out-sourceable, the rest of your skillset + computing is not. If you speak Hindi and Chinese AND can program C++, you might be a great project leader for one of these overseas projects. If you have a great handle on economics and business AND can code perl, you might be the person who they need to run their software division, because you'll have an eye for both the cash and the technical. If you're a science dork (like I am), you've got an instant-in with any professor that runs his lab using any sort of technology, because not only did you get an A in Genetics, but you can really understand how the PCR Sequencer works.
If Software Geeks in highschool would turn their computing prowess into A marketable skill instead of their only marketable skill, they'll have a much better time on the job market.
Just the way it's worked out for me.
By the way: Perl for the Perseus Project (http://www.perseus.tufts.edu), since I'm a Greek / Latin Major, and Visual Basic in the Avian Cognition Lab, (http://pigeon.psy.tufts.edu), where I do research on Avian Cognition and Concept formation (coz I'm a Psych Major too).
Um... sure... and what should be done exactly? Protectionism doesn't work. Period. And why do you assume that it's a rightious thing to do? A techie in the Philippines makes about ten times less than an American doing the same job. Do you think that this is equitable? I personally think that Filipinos/Indians are being used. Basic economic theory states that as more job opportunies open up in those countries, the higher the median salaries will be. That means a *lot* of people in the world are going to have much better lives. At some point equilibrium will be reached and the outsourcing will wane significantly. As an American techie, I'm not at all worried about my career. There will always be work here for people like me who are creative, resourceful and motivated. Hopefully that means that much of the chaff in IT will be eliminated; I'll be working with more knowledgable people in my field--the opportunists who got into IT for the quick buck will be off chasing their next white rabbit. All in all, seems like a win-win situation.
Entrepreneur : (noun), French for "unemployed"
It seems to me that when the music and film industries complain about prirating, we often cry out that they are just refusing to deal with changing technology. They ought to adapt. If they can't adapt, they ought to go out of buisiness.
Funny that when the topic is the American industry and not technology, everyone refuses to adapt. Well, surprise! The economy and the industries of the world change, but Americans refuse to adapt. Instead, we'll see more anti-trade and anti-captitalist legislation such as tariffs or requirements for employing Americans citizens only. Not too different from anti-piracy legislation. What hipocracy!
OK, enough ranting from a non-American point of view. Have a nice day.
** Sig-a-licious **
Get a trade. They can't outsource your plumbing.
Forget thrust, drag, lift and weight. Airplanes fly because of money.
It also *equalizes* prosperity. And seeing as Americans are at the tip top of the wealth pyramid, where do you think we'll go?
I'm not saying that such equalization is not appropriate. But no matter what, it will be painful.
Linux IT Consulting and Domino Development in Michigan
Why is it that everytime *another* corporate decides to ditch their bonafide american employee and jump in to bed with an indian firm so that he can save 20% and earn 50% more bonus for the Senior staff, all of the slashdot crowd and rest of the civilized society starts bad mouthing the people across the ocean who does their job for a fraction of the original cost?
Why is it that your Indian counterparts end up the bad apple, while you safely chose to ignore the people who made the decision to outsource and the govt who chose to standby and watch. Is it because that its easier to do so?
What happened to the path of civil disobedience? What happened to when people disagreed with the policies of the Govt chose to clog the streets with political rallies, shoulder to shoulder with thousands of others and march in unison?
What happened to "lets start a campaign against firm "A" who has decided to ditch loyalty for quick cash" and actually follow through with it by actively campaigning against the corporations who chose to fire its employees, stash their millions in Cayman Islands by withholding tax and reward their CXO's with millions in bonus and stocks.
Nope, its far too easier to just blame the Indians!
Rapid Nirvana
I know I'll be flamed to death and modded down, but the government should have nothing to do with outsourcing and restricting those companies who do.
The government already does have everything to do with "the outsourcing problem".
The amount of taxes our government levies, and the restrictions placed on companies (environmental regulations, labor laws, etc), are why it's cheaper to outsource jobs overseas.
Nobody in America could possibly afford to work for $0.80 an hour. But, even if they could, it's illegal to pay people less than $5.65 or so (whatever minimum wage is now).
I am not sure whether or not I would say we have too many restrictions of this nature or whatever. But the fact remains that it is literally impossible for US workers to compete with the workers of other countries. And it is impossible because our government makes it illegal to compete on even ground.
I reproduce below a response to the original article that sums up the reality of the situation. Do not underestimate the quality of Bangaloreans/Indians just because they are not American. Most urban Indians have a far better education than many Americans.Underestimating your rival (economic) is the easiest way to lose a deal/war/empire
From the responses to the article cited:
Subject: Who made you a Director? first question that came to my mind,cauz atleast the Directors whom I know about will never dare to insult anybody.What makes people great is not their position or the number of degrees that they have,but their character,their humility.You are pathetic at that.To introduce myself,I am a cyber coolie,according to your description,but a coolie whos passionate about what he does,who takes pride in what he does.Clients come to us with problems that haunt their business, problems which could be solved technically.We work with them to identify the actual issue and then architect a solution for them.Now throughout my career what I have found challenging is not the technology,but the task of translating the complex business scenarios into code.Our clients are very much appreciative of this and mind you,I am talking about millions of dollars here(if you can understand the magnitude). This list includes Fortune 500 companies and military institutions.All I think about you is somebody whos frustrated with his career life,doesnt understand the word passion or pride,and taking out his frustration on something.Agree with what good things you said abt silicon valley. -- I am not from Bangalore Posted by Swaroop on 10-MAR-04
I'm 41. I grew up in a small town about 30 miles outside Detroit, and I remember well the fuel crisis of the 70's, and the Detroit response to the growing stream of imports that followed. I also vividly remember the Polish coal miner's strike and proudly wearing my red "Solidarnosc" t-shirt. I was - and am - a punk. I come from a blue collar home, and I share many of my father's ideals - a man who worked thirty years as a union pipe fitter. I am definitely no corporate apologist.
Yet I'm saddened to see the same nonsense being repeated in this field that happened nearly three decades ago in the auto industry. Only this time it's doubly embarassing to me, because Japan in the 70's was already a very developed, affluent nation (remember when they were taking all that heat for buying up US properties?). This time, however, it's India - a nation brutally overpopulated where people regularly die needless deaths from ailments like burst appendices and dysentary.
I had an appendicitis attack a few years ago. I didn't have a job and I had no money in the bank. Yet I showed up at the hospital and they asked zero questions when it came time to resolve the issue. Total cost was several thousand dollars and the fact I couldn't pay for any of it at the time meant essentially nothing: I got my treatment. If I hadn't, I likely would have died a slow, painful death from paretenitis.
We live in a nation where no one HAS to starve. Where no one HAS to sleep on the street. Where no one HAS to die from common little ailments simply because they can't get basic medical attention or clean drinking water.
Isolationism is cowardice. Isn't this that same community of folks who routinely chant "evolve or die" when it comes to issues like RIAA protectionism, proprietary software protectionism, and absurdly overblown patent laws? Yet I've not seen ONE comment from anyone here of that sort.
I'm ashamed for the lot of you.
And I'm sure that there's nothing imported in your house... oh, it's okay when you benefited from it, of course.
Did you get out and picket when they started closing factories because of foreign importers? Do you practise an exclusive policy of "Buy American"? Heck, do you even make sure that the petrol you put in your car was pumped out of Texas, and not the Gulf of Arabia?
Didn't think so...
"Software is too expensive to build cheaply"
You missed the main "equalization" -- the standards of living. Our "leaders" (of either wing of the ruling party) have sold us out. All this terrorism hysteria is being whipped up to help build a police state to protect the thieves when it hits the fan. The way they're hurrying it up last few years, suggests it won't be long.
I disagree with you (I'm an immigrant Canadian BTW.) I'm a leftist and don't subscribe the view of a nationalist (capitalist?) like Lou Dobbs. So even though I am against what is transpiring, I am nowhere near Lou Dobbs on the econopolitical spectrum. The reason against the present type of "free trade" can be summed up as follows.
First of all, I support trade. It is a way for all countries to prosper (check out 'absolute costs and comparative costs' to see why.) However, I am against what passes for "free trade". We can go into lengthy argument over this but I'll just describe where you are wrong.
Who Benefits?
What you fail to contemplate is the benefits--in particular, who is benefitting from this? Indian workers, for instance, do not benefit in the long term. What is to stop the jobs from being outsourced to another lower-cost country? In fact, it WILL happen. When that happens, India will lose jobs while another poorer country gets the jobs for a short while. Rinse and repeat. You cannot build an economy in such a manner. This is nothing more than capitalist voodoo magic (except the capitalists won't tell you that there is no such thing as real magic.)
If the outsourced workers don't benefit overall in the long-term, who does? Well, it is pretty simple. It is the capitalists. When I say capitalists I am talking about shareholders of corporations. The vast majority of the benefit accrues to the shareholders. It doesn't accrue to India or Indian workers, or American workers. This is blatantly obvious to anyone that follows these things. For instance, corporate profits go up almost in full proportion to the "free trade."
Why most leftists oppose
Another serious problem with "free trade" is that one of the major reasons corporations carry it out is to circumvent environmental regulations and working conditions. This isn't so much a problem in the tech sector but plays a big role in manufacturing, textiles, and others. In other words, there are many cases where corporations simply move to another part of the world just so that they can hire workers that they can fire at will, pay no benefits, etc.
What passes for "free trade" is coming at the expense of workers. Most leftists would not want to see all the benefits accrued by worker movements in the past to be destroyed.
US Imperialism
You are a sympathetic person. I am glad you are--we need more like you. However, what is happening isn't going to help anything even if what you are saying were true. The US economy is too small relative to the number of poor people. Even if 100% of US "jobs" were transplanted elsewhere, it probably isn't enough for 1/3 of Africa alone. If you really care about the lives of the less privledged in other countries, stop US imperialism! US imperialism has set back many countries by decades (particularly Latin America.) Get your country to stop meddling in other countries' affairs, overthrowing goverments, bribing--and hence solidifying--corrupt evil politicians/autocrats, and don't provide military "aid" to any of these countries. That will help the poor more than what "free trade" ever will.
Auto Industry and Japan (circa 80's)
The auto industry survived in the 80's because of protectionism. Basically, USA and Canada slapped on a massive tariff on imports (this happened because auto unions are stronger than anyone else, including the capitalists who own the car companies.) So Japanese companies came and built factories in USA and hence manufactured cars there. If it weren't for government intervention, the auto industry would have completely dissapeared. There is no way USA and Canada could have competed against Japan at that time. So this isn't a good example for you case. Whether this was a good thing or a bad thing depends on your ideology. Capitalists claim the intervention was bad because it jacked up car prices (cars would be cheaper if it weren't for that); socialists and most leftists would say it was good because it kept the auto industry.
Sivaram Velauthapillai
Sivaram Velauthapillai
Seeking the meaning of life... @slashdot of all places