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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.
When i worked for featureprice, most of the non phone based technical support was done from india. They are some smart people, but they are lacking in alot of things we take for granted. Our boss always happily let us americans know that he could hire 3 or 4 of them to each 1 of us. Hows that for making you take your job seriously? :) Too bad hes a bastard and should be rotting in jail as hes a scamming prick
First developers (Or many tech related jobs) and now writers.. This is starting to get really scary, especially for people my age; I'm still in high school and it's going to be a few years before I can get a _real_ job, and at this rate it's going to be hard to find any local ones. This really needs to stop, or at least be done in moderation, it's getting out of hand.
Buckethead
Exporting America: false choices
In none of the attacks on my position on outsourcing has a news organization addressed the facts.
March 10, 2004: 11:12 AM EST
By Lou Dobbs, Lou Dobbs Tonight
NEW YORK (CNN) - You may have noticed recently that I'm being attacked for my views on the exporting of American jobs and my calls for a balanced U.S. trade policy.
Gerard Baker of the Financial Times called me the "high priest of demotic sensationalism."
An editorial in the Economist magazine accused me of embarking "on a rabidly anti-trade editorial agenda" and "greeting every announcement of lost jobs as akin to a terrorist assault."
Lou Dobbs comments on recent attacks of his views on the exporting of American jobs and U.S. trade policy.
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Daniel Henninger of the Wall Street Journal excoriated me, I must say, in high style for my troglodyte views on outsourcing by saying, "It's as if whatever made Linda Blair's head spin around in 'The Exorcist' had invaded the body of Lou Dobbs and left him with the brain of Dennis Kucinich."
Washington Post columnist James Glassman has simply accused me of being a "table-thumping protectionist."
Those quotes are from some of the most respected news organizations, and there have been dozens of other articles critical of my view that outsourcing American jobs is neither sound, smart, humane nor in the national interest.
Makes a fellow think
I will tell you it does make a fellow think when attacked so energetically and so personally. But in none of the attacks on my position on outsourcing has a single columnist or news organization seen fit to deal with the facts.
Number one: We're not creating jobs in the private sector, and that's never happened before in our history. Our economists and politicians need to be coming up with answers, not dogma.
Number two: We haven't had a trade surplus in this country in more than two decades, and our trade deficit continues to soar.
Number three: We've lost three million jobs in this country over the last three years, and millions more American jobs are at risk of being outsourced to cheap overseas labor markets.
That seems to me, at least, to be more than sufficient evidence for all of us, Republicans and Democrats alike, to question critically the policies of both parties that have led us to this critical juncture in our economy and our history.
Check out the "Exporting America" list
Frankly, I would love to be proved wrong in my views, and I would gladly change my position, if only my critics would answer a few questions factually, empirically and straightforwardly.
One: How many more jobs must we lose before they become concerned about our middle class and our strength as a consumer market? Two: When will the U.S. have to quit borrowing foreign capital to buy foreign goods that support European and Asian economies while driving us deeper into debt? Three: What jobs will our currently 15 million unemployed workers fill, where and when?
My critics and proponents of free trade and outsourcing suggest I'm a protectionist because I want to curtail the export of American jobs to cheap foreign labor markets just to reduce wage levels, and to eliminate our trade deficit and to pursue balanced trade policies.
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Our principal trading partners, Canada, China, Japan and the European Union, all typically maintain annual trade surpluses and pursue balanced trade. Why don't my critics call them protectionists? Why not call them economic isolationists?
My critics, and proponents of the status quo, are offering false choices. They say we must decide between protectionism, or economic isolationism as the president said today, and free trade. I'm sure they believe those choices are the only ones available.
But maybe they also fear our policymakers may discover a middle ground for a desperately needed new U.S. trade policy: a balanced trade policy in the national interest.
Answers on Outsourcing
A finance professor argues against placing blind faith in outsourcing. His views follow.
March 12, 2004: 8:18 AM EST
By Rory L. Terry
The following is a guest column by Rory L. Terry, an associate professor of finance at Fort Hays State University.
NEW YORK (CNN) -- A great deal of effort is being expended to convince us all that the outsourcing of jobs under the rubric of free trade is a good thing. I would like to discuss some of these arguments.
Our labor force is not better trained, harder working, or more innovative than our foreign competitors. The argument that we will create new jobs in highly paying fields simply is not true. We have no comparative advantage or superiority in innovation. To assume that we are inherently more creative than our foreign competitors is both arrogant and naive. We are currently empowering our competition with the resources to innovate equally as well as we. Consider the number of new non-native Ph.D.s that leave our universities each year; consider our low rank in the education of mathematics and the sciences; and consider the large number of international students enrolled in our most difficult technical degree programs at our most prestigious universities.
Most of our best, high-paying jobs can be exported.
1. doctors (even surgeons)
2. mathematicians
3. accountants
4. financial analysts
5. engineers
6. computer programmers
7. architects
8. physicists
9. chemists
10. biologists
11. researchers of all types
Our trading problem is an externality
An externality exists in economics any time there is a separation of costs and benefits, and the decision maker does not have to incur the full cost but receives the full benefits of the decision. The fact is, there is no economic force, no supply and demand equilibrium, no rational decision process of either business or consumer, that will make an externality go away. Classic examples of externalities are when a business dumps toxic waste into a nearby river and the downstream residents incur the costs of cancer. The business is able to lower its costs and pass those lower costs on to its customers, and never pay for the treatment of the cancer patients. We have laws in this country against dumping and pollution because they are externalities -- they require a legislative solution.
Cost reductions and other benefits provide a strong incentive to outsource jobs. A company that decides to move its production overseas cuts its costs in many ways, including the following:
1. Extremely low wage rates
2. The circumvention or avoidance of organized labor
3. No Social Security or Medicare benefit payments
4. No federal or state unemployment tax
5. No health benefits for workers
6. No child labor laws
7. No OSHA or EPA costs or restrictions
8. No worker retirement benefits or pension costs
Besides cutting costs, there are other benefits to exporting jobs, including the following:
1. Tax incentives provided by our government
2. Incentives from foreign governments
3. The creation of new international markets for the company's products (which ultimately empowers the company to turn a deaf ear to this country's problems and influence)
4. The continued benefits of our legal system and the freedoms that we provide
The net effect of all of this is lower costs, higher revenue, higher profits, higher stock prices, bonuses for management, and the creation of wealth for a subclass that benefits from low taxes at the expense of the rest of us.
The costs of the decision to outsource are not borne by the decision maker. As a society and as a country, we experience many costs from outsourcing, including the loss of jobs, social costs, higher costs of raw materials and loss of national s
Posted by: StrugglingInMI on Tue, 09 March 2004 14:49:15 | (2324 Reads)
http://www.itunemployed.com/xaraya/index.php?mod ul e=articles&func=display&aid=264
Elegy for a Profession
A song of the discarded
Hello, Corporate America. Do you know us? Do you remember?
We are I/T.
We are the men and women who helped you build the 21st century.
We flocked to the new technologies, taught ourselves the skills we needed when colleges could not, and forged the tools you asked for.
We signed up willingly, knowing that of all professions, ours was the one where today's knowledge would be tomorrow's obsolescence, where last week's skill is worthless now, and where falling out of touch with progress is career suicide.
And we knew, some of us, that ultimately it would be impossible to keep up with the pace of change - but we tried anyway.
We are I/T.
We are the ones who embraced the idea of 7 x 24 operations, who willingly condemned ourselves to odd hours, unpaid overtime, and ever-increasing expectations, so "expensive equipment could be used most efficiently."
We are the ones who gave up families, friends, and "life outside" to spend endless hours building, fixing, and changing the systems that kept you going and growing. We learned that the dream of a 40-hour workweek would never, ever apply to us.
We are the ones who carried pagers when they were almost exclusively the tools of doctors, pimps and drug dealers.
We are a young mother, sitting in a cubicle at 3:00am, troubleshooting a software problem while her new baby sleeps in a carryall next to her desk.
We are a husband, called from his bed in the dead of night, on call not to save a life, or rescue a trapped motorist, but to rebuild a database index, or repair a broken disk drive. And sometimes, the problem was fixed, and it was the marriage that stayed broken.
Do you know us? We are I/T, too. We are the family of a "computer geek", who learned that vacations, holidays, and sick days did not mean freedom from stress for our loved ones, or uninterrupted time with us. We watched as our parents and spouses took cell phones, laptops, terminals, and manuals with them everywhere, ready to give up our family plans on a moments notice to keep your business running. We heard the phones ring in the middle of the night, at the park, or during dinner. We tried to understand.
We are I/T.
Yes, we are the ones who listened when the siren song of ever higher salaries beckoned. Are you surprised? Do not blame us for taking the salaries you offered. Rather, look to yourselves for creating a work environment so intense, so stressful, so demanding that for ten straight years, the schools to teach the next generation found fewer and fewer applicants.
But your demands did not decrease. In desperation, you threw money at us to buy the expertise your own voracious appetite made scarce.
We are the ones who welcomed foreign workers into our midst, when things were so bad you had to recruit overseas to feed your endless demand. While other departments struggled with racism and intolerance, we became a United Nations in miniature, grateful for help from any quarter, any society that could ease the crushing workload. We built a society of equals, holding no prejudice except technical inadequacy.
We watched our budgets shrink each year, while demands for productivity soared, and our pleas for more help were ignored. And we endured the criticism when the inevitable failures occurred, as overwork, stress, and tension took their inevitable toll on our skills.
We are I/T.
We had to learn not only our profession, but yours too. We learned your business practices so well that sometimes we knew more about them than you did; and we are the ones who had to stand by and listen to your "voice of experience" while we watched you make fatal decisions.
We designed the systems you asked for, only to watch as t
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.
It should be responibility of the consumer to buy American-produced products, not for the government to control whether we can decide who we hire or not, or where.
Vote with your dollar, but don't let the government have more power to control us.
Also, let us not forget that Indians are people too. Countries are man-made divisions between people, but in the end, we all need to eat, drink, get medicine, and have fun. Is an Indian life less important than an American one?
Really, I don't have much of an opinion on this issue, because I just want to buy cheap, efficient products, and I use Linux anyway so most of the software is freely available. I can see why people are complaining (Americans need jobs!), but then again, so do Indians, and they work for less.
So, again: If you don't like a companies' practice, don't buy their products. Don't let the government have more control.
---
Never criticize religion on Slashdot. You will be modded down for "Troll" no matter how factual it is.
Me type god Englis
Actually, virtually all Indians have a native language other than English. SO, their exposure to English is actually via the written text. Newspapers, magazines, textbooks...etc Barring formal conversations in school, Indian kids* don't speak English. But all of their homeworks and exams are answered in English. So, their grasp of the written form, is adequate.
*I'm only refering to the urban middle-class segment.
I'm truly sorry if you guys are losing your jobs and I wish ill on no one here, but whenever outsourcing comes up the /. community automagically becomes a protectionist democratic bunch.
We are amused by the hypocrisy thrown in ultra-sharp 4mega-pixel relief.
An interesting fact for you; India has the second largest English speaking population in the world. In fact, there is concern over the relegation of India's native languages, of which there are many. School is taught in English, and for some it may be regarded as a first language.
I'm going to go ahead and say that an Indian writer may be as competent as an American writer. I think the bigger issue is context and perspective; can an Indian writer offer an American audience the same perspective, from their different context, as an American author?
I ran a benchmark on my quantum computer, now I can't find it anywhere!
Reading your post I am doing something similiar. I am outsourcing a commercial software project to a friends company in China. I am the one doing all the design, project management and quality assurance and eventually be the salesman too. I don't have the skills to do the job myself, it would take a couple of years for me to get to that point and then I would still need to do the programming. If I tried to outsource it in the US it would be a $200,000 project which I don't have and I still would have to find programmers to actually do the project. outsourcing it to some good programmers and the project costs are $30,000. I could not even consider doing it if I could not do it in China.
My situation is fairly unique compared to large companies trying to outsource whole departments to India. While I have creative control and final say, most management in the US don't have any real design knowledge or quality control when it comes to writing software. They are making the assumption that a person in India is the same as the person in the US ignoring all the things the person who has worked for them has brought. New ideas, understanding business needs, meeting rather unreasonable time expectations are all things that these people do.
I think that you will find that these companies are going to be slowly start losing market share because they are going to stagnate, they will have no reservior of new ideas. They will have a source of cheap labor for their current software, but it will never get better and just maintain a status quo.
Anyways, just ranting..., hopefully someone can find something in there.
"A techie in the Philippines makes about ten times less than an American doing the same job."
It's called "cost of living". In the US, you can't afford food, shelter and clothing at 1/10th of what you're making now. You might have a job, but you will not be able to keep it very long living in the homeless shelter.
"Basic economic theory states that as more job opportunies open up in those countries, the higher the median salaries will be."
Yep. It's called "inflation". It happens when more capital flows into a region. So they double their income. They're still 20% of your salary which still means "homeless shelter" for you.
"That means a *lot* of people in the world are going to have much better lives."
Probably. They'll have twice as much money as they had before.
"At some point equilibrium will be reached and the outsourcing will wane significantly."
Huh? It will level off and then fall significantly? I don't see that. I see it leveling off. But that's just the race to the bottom of the wage bucket.
"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."
At $15,000 a year (before taxes). I wouldn't worry so much about a career. I'd worry more about food, shelter and clothing. But that's just me.
"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."
Statistics. There are a LOT more people in India and China and so forth. Statistically, your skills are NOT at their level.
Here, let me put some numbers to that.
You are in population A. There are 1,000 people in population A. You are in the top 90% there. That means that there are 100 people as good or better than you and 900 people who are less talented.
Population B has 10,000 people (10 times more than population A). Their 90% mark is 1,000 people. In other words, their best people are more numerous than your best people.
So, while you're CURRENTLY competing with 100 other people for a good paying job, when you combine both population, you'll be competing with 1,100 people.
And, of that 1,100 people, 1,000 will have expenses lower than your's. So they'll be able to do the work for LESS than you.
So, statistically, you'll have to convince an employer to hire you over someone better qualified and yet pay you MORE than that better qualified person wants.
Good luck on that.
Nobody really wants to hear this, and I'm sure I'll get flamed, but my company has done business with several Indian software companies and the reason we choose to work with them was NOT because of cheaper labor and costs. The bottom line is that on average, the Indians are BETTER PROGRAMMERS than most Americans. You can get better-quality work and better service.
Nobody wants to really address this issue, but in my experience, when we need something done, we don't get the whiny, flaky experience that is so common with American developers. There are definitely cultural issues which can impede certain efforts, but the Indians know code, especially on a lower level far better than their American counterparts, and they're not obsessively distracted or inconsistent.
The issue with outsourcing isn't half as much about cash flow, as it is a testimonial to the fact that if American developers were half as productive as Indians, it would be cheaper to use them, and we'd have better quality software.
Before you argue this point, stop and look around you. Do you think the quality of the majority of things you use on a daily basis, especially anything made in America, has dramatically improved in the last 20 years? Do you think this culture's work ethic is even near as substantive as it was many years ago? We live in a society where we're constantly taught that everything can be upgraded, we're fed disposable products, we screw in lightbulbs that are manufactured to fail, we sit in front of televisions all day long and can't pay attention to anything, and you want to talk about who can program better? The educational system in this country has been sliding downhill rapidly. The reason India is so appealing is because they haven't turned into ADD self-absorbed mega-consumer capitalists yet, so their production is superior. And what's the US's "solution" to this problem? Pass a law making it difficult to outsource. How ironic.
Several decades ago Karl Polanyi, IMNSHO the world's astute economic historian and philosopher, discussed pretty clearly how we were building up to a rehash of the world economic crisis of the 1930s.
To put simply, the world is split into the developed industrial and post-industrial nations, and the developing nations. The developed nations (USA, UK, Germany) are typically rich in knowledge assets, whereas the developing nations (India, Mexico, and to an extent, China) are rich in natural resources.We in the US and Western Europe have the creativity and the skills, but tend to be in short supply of labor resources and materials. The reciprocal is true in the developing nations. This permits us to exert bargaining power over these nations, resulting in cheap materials and cheap labor.
Through Western education, developing nations are beginning to develop the creativity and the talent, with which to complement their ownership of the resources. However, we in the post-industrial West (and Japan and Taiwan) are not as able to gain the resources.
This is where things get scary. India has been a good place to pump out cheap code - even if the code isn't innovative or even original. The Chinese are good at assembling parts, despite not being talented at designing them. That's changing. With this growing independence in creativity and talent, combined ownership of the factors of production, developing nations are shifting the balance of power in their favor, and most likely will be able to exert greater economic (and thus political) power over the current post-industrial nations.
In my opinion, American and Japanese ingenuity will continue to save our two economies; however we'll lose much of the bargaining power we already have once it becomes desirable for an Indian firm to outsource some of its processes to cheap American labor. We can definitely expect the price of materials to increase for Western businesses as a result of the balance of power.
In case anyone's interested...
The Great Transformation - The Political and Economic Origins of Our Time, by Karl Polanyi ISBN: 0-8070-5643-X
I came to USA to pursue masters degree and it is a great prestige for my famiy if i complete this program
Everyone was saying , life in Us is the best.This further fuelled my desires
Im gonna finish MS now and probably return back to India becuz of obvious reasons
Whats worse is my undergrad friends are so F**** skilled in programming now that i feel its utter waste to do MS
At the end of day i ahve skills that r not welcomed so much in industry
My indian buddies work for Intel sun Thoughtworks IBM and i bet im no inferior to them in skill when i came here.
Bad decision.Life in USA is materialistically awesome.
Family wise , i dont wanna explain.
I really mean it , u guys should see some laid back countries and relatiosnships of people there.
Hello , this is my way.
Which way is yours ?
btw there is no right way