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IT Outsourcing Need Not Threaten Our Future

Xeo writes "The topic of the moment in a lot of people's minds is the outsourcing overseas of 'white collar' jobs. While many people are perhaps rightfully worried about this, there's an editorial on the subject that tends towards the other direction. It makes some very interesting points on the whole idea of outsourcing and what it means for the US at least."

28 of 647 comments (clear)

  1. creativity and innovation by manavendra · · Score: 3, Insightful

    Well yes, as I have maintained in the past, outsourcing does not present a strategic long term concern for the US. Sure, there are certain jobs that shall be relocated or executed from remote locations, but even if one looks at the current trends - anything that remotely involves creativity or innovation is not going anywhere

    --
    http://efil.blogspot.com/
    1. Re:creativity and innovation by Roger+Keith+Barrett · · Score: 5, Insightful

      What do you mean that there is no strategic long term concern?

      I'll tell you just one, a big one... when there is absolutely no reward for going into a technical, I.T. or engineering career then no one is going to go to school to learn these professions.

      Then you really WILL lose creativity, innovation, and have a REAL lack of in-country talent.

      --

      Why don't you embrace your slashbotness instead of living in a dreamworld?
    2. Re:creativity and innovation by offpath3 · · Score: 4, Insightful
      I'll tell you just one, a big one... when there is absolutely no reward for going into a technical, I.T. or engineering career then no one is going to go to school to learn these professions.

      Have you forgotten that learning and working with what you like is reward in and of itself for many people? I think job prospects would have to get pretty darned bleak before I'd do something other than computer science...

    3. Re:creativity and innovation by markxsd · · Score: 4, Insightful

      anything that remotely involves creativity or innovation is not going anywhere

      Creativity is not necessarily a big part of a job in IT though. For example, a DBA may have needed to be creative when the shXt hit the fan 10 years ago, but these days things shouldn't go wrong that often, and if they do then follow the backup and recovery plan that was probably written 5 years ago by someone creative. OK you need to know what you are doing, but the chances are you aren't the first DBA to have encountered this problem. Call the vendor for support. Push the buttons they tell you to. I'm not saying it's easy - you'll need to know what you're doing - but let's face it, innovation and creativity may not be the key skills you need here.

      The same goes for many other white collar jobs out there. Does a lawyer need to be creative when drawing up a contract on the sale of house? Does a claims assessor have to be creative when looking at documentary evidence after a car accident?

      There are a lot of jobs out there which have an inbox and an outbox, and a series of logical questions. Those that haven't already been automated, are exactly the kind that could be outsourced. And that does have the potential to affect any Western economy.

    4. Re:creativity and innovation by unformed · · Score: 4, Insightful

      No, when that happens you're just going to stop having people go into these fields simply to make money. The people who have creativity, who actually like this kind of stuff, will still go, and though there will be less people in the fields, they will be far, far more knowledgable than those right now. The market right now is flooded with "programmers" who can barely write in java, let alone anything else.

      If you don't believe me, look at fields like Mathematics, which offers barely any jobs at all. Yet, there are quite a few people studying for it, most going for their PhD's. I do believe they're doing it for the love of mathematics rather than that excellent paycheck that they're going to get (which they probably won't anyway).

    5. Re:creativity and innovation by Roger+Keith+Barrett · · Score: 4, Insightful

      Have you forgotten that learning and working with what you like is reward in and of itself for many people?

      And I enjoy working with and learning about classical literature, but there are so few job opportunity as a classical literature reader that I decided not to go on and get advanced degrees in that area. So it turns into a hobby.

      Practicality has to kick in at some point. I think you will eventually be shedding people that really have talent and won't go into it just because they can't make a living out of it. The number of good people will go down.

      Maybe it will, however, improve the quality of the people left because they really want to be there.

      --

      Why don't you embrace your slashbotness instead of living in a dreamworld?
    6. Re:creativity and innovation by SmackCrackandPot · · Score: 3, Insightful

      Mathematics was my favorite subject at high school, and it was my first choice to study at university. However, following the advice of an mathematics teacher who had a "pure mathematics" degree, was on a low salary and couldn't find employment anywhere else, I chose to study Computer Science instead. Also, at that time, the UK government responded to the number of unemployed "pure subject" graduates, by insisting that universities focus on applied subjects. Now we have a shortage of mathematics and science teachers (I believe just above every teacher who had a pure degree, ended up going back to university to do a Ph.D. and become a lecturer/professor).

      Bottom line is: people are only going to study a subject if they can see that the people ahead of them are doing something they enjoy and can afford to live somewhere they like.

    7. Re:creativity and innovation by sql*kitten · · Score: 3, Insightful

      If you don't believe me, look at fields like Mathematics, which offers barely any jobs at all.

      In financial services, there are lot of mathematics and physics PhDs and most of them are well paid. They're in high demand anywhere that complex models are in use, from derivatives trading to reinsurance. Granted that's not pure mathematics, but still, if you have the qualification, it definitely does open up some very well paid possibilities that aren't available to those without.

    8. Re:creativity and innovation by NDPTAL85 · · Score: 4, Insightful

      Ugh I really hate this line of thinking. A lot of the people in any industry who are in it "for the money" are orders of magnitude better at whatever job they're in than those who are there just "for the love of it".

      An emotional attachment to something does not equal intellectual apptitude.

      Those who desire to make lots of money however tend to focus their intellects on whatever it is they do best and then they go out and do it.

      --
      Mac OS X and Windows XP working side by side to fight back the night.
    9. Re:creativity and innovation by Anonymous Coward · · Score: 3, Insightful

      It seems as though the core argument of the piece rests on the idea that "America = diversity; diversity = good; engineering in America is therefore diverse and therefore good."

      "I believe a good part of our creativity comes from our inherent cultural and ethnic diversity. Americans are used to working with people of different attitudes, cultures, and racial and ethnic backgrounds".

      While this is a nice and politically correct viewpoint, it is quite divorced from reality. The majority of US engineers (of all disciplines) are white males. As a matter of fact, almost all of my university engineering classes were about as "boringly" homogeneous as you can imagine (sex, race, cultural background). Moreover, in my opinion American culture is "retreating" from the concept of melting pot diversity. Minorities as a group are viewed IMHO at best with distaste and at worst with bigotry and suspicion.

      I think most middle class (white) Americans would loudly proclaim that they are in favour of diversity on the one hand, and on the other go to tremendous lengths to make sure that there own children attend de-facto segregated schools.

      "innovations such as human flight, refrigeration, electrification, the telephone, automobiles, television, computers, space travel and the Internet"

      All of the above achievements, grand as they are, were conceived of, instigated, and developed by a very homogeneous group of people. I am not trying to make a value-based pronouncement, but merely stating my understanding of historical fact.

      Diversity is a laudable goal, but arguing it for its own sake is questionable. I completely disagree that American innovation stems from diversity, but rather that it stems from the strong sense of individuality and "selfness" that permeates this culture.

      In fact, I might even wonder if too much "diversity" might not be a Bad Thing.

  2. Again... by Roger+Keith+Barrett · · Score: 3, Insightful

    The assertion that jobs are being outsourced because there aren't enough people in the USA that have technical credentials is BULL SHIT.

    Try telling the guys with PhDs that can't get jobs that there is no talent in this country.

    --

    Why don't you embrace your slashbotness instead of living in a dreamworld?
    1. Re:Again... by Anonymous Coward · · Score: 3, Insightful

      People with PhDs aren't necesarily the right people to be commercial programmers.

      In fact, they're probably exactly the worst people.

    2. Re:Again... by ffub · · Score: 5, Insightful

      People with PHDs are over qualified for most commercial programming jobs, and will demand a far higher pay.

      They should stick to research, commercial programming is not just about theoretical know how. I know good commercial programmers that don't even have A Levels, that have learnt on the job and at home, and I know graduates who can't get a good job. The latter cost more and expect more.

    3. Re:Again... by JayAdams · · Score: 3, Insightful

      Offshoring coders is utter bullshit

      Nope, just economics. The internet has just provided another source for employers to find employees (Global contractors). The employer's job is to get work done for the least amount of dollars and maximize shareholder or owner value. Guess what? You charge more for the same product. Think you're innovative and better than offshore coders? Prove your value or take a hike. Can't stomach a pay cut? Sorry, but Home Depot is looking for cashiers, maybe you'll have better luck there. It may seem immoral to ship jobs overseas, but it makes the PHB's look very good on the bottom line.

  3. Actual content by kahei · · Score: 5, Insightful



    This is an article about how Americans see themselves -- or rather, about how the author would like them to. It does not appear to actually touch on the economic realities (good or bad) of outsourcing.

    Yay for fluff.

    However, it is quite interesting in the American self-image that it pushes. While Americans are indeed diverse and tolerant, I think the remarks on innovation (which I hear often) could do with a little consideration.

    --
    Whence? Hence. Whither? Thither.
  4. Innovation by pubjames · · Score: 5, Insightful

    America's technological strength is based on innovation.

    I would say it is partly based on innovation.

    One huge advantage that the USA has in most areas of business is a huge, practically borderless, single market containing almost 300 million people. The benefits of this can't be understated, and it's something that other countries can't completely emulate (although in Europe we're trying to create a single market, we'll always have the issues with different languages and cultures).

    I think commentators often overestimate the advantage that the USA has in terms of the greater capabilities of it's people, and also are blinkered if they think that other countries can't achieve greatness as well.

    1. Re:Innovation by swb · · Score: 5, Insightful

      (although in Europe we're trying to create a single market, we'll always have the issues with different languages and cultures).

      I'm sure many will mod me into oblivion for saying this, but in the U.S. we're working on accomplishing this, too. Instead of encouraging our immigrants to learn English and assimilate, we instead promote bilingualism under the misguided notion that it promotes diversity, when it actually discourages assimilation and limits immigrants opportunities to the lowest end of the economic spectrum, since without a "push" to learn English they never do become bilingual.

      A friend's grandmother was an immigrant from Poland. She said that she learned English not because it was around her, but because it was seen as a badge of honor to speak English. As a teenager when she's shop with some of her older sisters, she would occasionally try to ask them questions in Polish at the counter with a salesperson. Her sisters would either ignore her or tell her to speak English.

      Like it or not, there was a strong social pressure to become an English speaker. Diversity and bilingualists have attempted to eliminate this pressure (it's alternatively xenophobic, racist, or just simply bigoted). If they continue succeeding, we'll end up like Europe, or worse, a Balkanized country divided by language. History demonstrates that nations do not stay healthy divided by language and culture -- the term isn't called "Balkanized" for nothing. Switzerland is the only country I can think that's made it work, everywhere else it always leads to division at best and bloodshed at worst.

      I plan to have my son learn Spanish at the earlist possible age, since even in Minneapolis, it's impossible to hold even a basic functional conversation with many service workers, since they don't speak *any* English. I don't understand how non-Spanish speakers even manage in Southern California, but not living there I don't have a great feel for the Anglo/Latino cultural divide.

  5. Re:Basic premise by Anonymous Coward · · Score: 5, Insightful

    Most people argue that "when we outsource one sector of work, the country advances and most of our people go into a greater field of work, above what they were doing before".

    In other words, we outsource production/manufacturing jobs and then we become a service and information based economy. But the problem with this NOW is that you're not talking about putting a bunch of assembly line workers out of jobs and making them go to school and learn something. You're talking about forcing educated, professional people who have often gone into debt to acquire their educations or people who have technical skills but no on-paper-degree out of their work as the work is shipped overseas.

    It's one thing to tell a guy who runs the bottle-capping machine at 7-UP that his job is being shipped overseas and he's going to have to go back to school and persue college toward some sort of office job or higher technology job. It's quite another to tell someone who has spent a decade or three building their white collar career or a person who spent four or more years in college, then building their career and dedicating themselves to a particular field that now they're going to have to go back to school all over again (sometimes after just having graduated and gone into debt a first time) and learn something new...

    Sure, maybe it's great for the country overall... but it sucks ass for individual people in the meantime. It fucks a whole generation over.

  6. Missing from the article by I8TheWorm · · Score: 5, Insightful

    A point I think the article misses on, and a fairly important one, is the current education system in the US. While problem solving (vs. memorization) is still the focus of education here, it's not as enforced as it was in the past.

    I have family in several states in education and most agree that we're turning out fewer problem solvers than in the past. None seems to have a solution, outside of parenting (or lack thereof), which I think is the leading killer of a solid education.

    What used to draw innovators from other countries was the freedom and opportunity found in the US. Both of those seem to be dwindling. Where does that leave us?

    I think we're also in for a lull in innovation in the US, which is scarier to me than the trend in offshore outsourcing. I've been a professional developer for 13 years. Although I haven't been affected yet, I have to assume it will affect me sometime (hopefully later than sooner).

    With three children, I am the math and science homework helper in the house. What I find is my children are taught tricks and workarounds rather than an understanding of the fundamental math problems. I'm glad to help my children, and love seeing the light go off in their head when they actually understand the problems they work on. So I have this idea. When I "retire" from development (forced or otherwise) I'm going to become a math teacher, preferably at the middle school ages. I've worked in math my whole career, and have had a wonderful experience with my own children (I know, teaching 25 kids is completely different). I think if more people were to go into teaching towards the end of their career, and in a field that matches their respective career, we would be turning out more innovators and maybe worry less about the future of the working world in the US.

    --
    Saying Android is a family of phones is akin to saying Linux is a family of PCs.
    1. Re:Missing from the article by arkanes · · Score: 3, Insightful
      Teaching is hardly a "cushy job" basically anywhere. Maybe at the university level, but certainly not down in the trenches where it matters. Low pay, long hours, huge stress (not least of which from people who assume that you're just in it for a cushy job and deride you for it). Which is not to say that there aren't institutional issues with education, but it's not because teachers are getting a free ride.

      Vouchers are stupid and don't solve any problems. "Performance" based teaching is totally moronic. What are you supposed to do with kids with learning disabilities? We'd be alot better off if we had "performance based" parenting, where you only got to have a say in your kids education if you can prove you won't act like an asshat.

      Give teachers the money the deserve, fund classrooms and education properly, and (especially!) start working on outreach in low income areas and maybe we'll see an improvement. There's lots of problems with public education in the US but privatizing it won't fix it. As a data point - all those countries that totally kick our ass when it comes to the education of thier children don't do it with privatized voucher systems.

  7. Re:Examples by Tarantolato · · Score: 3, Insightful

    it'll be like when the manufacturing and steel industries moved overseas to Russia and Japan and elsewhere.

    The one problem with stuff like this is letting business move anywhere it damn well pleases is is better for both economies concerned on a broad scale, it can really fuck over specific areas for a long time. I'm definitely better off with cheap foreign steel, but Scranton, PA for example is pretty much fscked.

    I don't think that IT outsourcing is going to create blight areas the way mill closings did - MCSEs have a lot more options than assembly-line workers. But I wonder. A lot of Lisp people still haven't got over the AI winter, even if it was largely their own fault.

  8. Slight problem... by mizukami · · Score: 4, Insightful
    From the article:

    Engineering in Germany is known for its precision. Japan is recognized for continuous improvement of products (as American automakers have learned all too well). America's technological strength is based on innovation. Of these three, I'll take innovation for the most enduring competitive advantage.


    Slight problem here. Germany and Japan are certainly not known for their lack of innovation, while in many areas the US is notorious for its lack of precision and continuous improvement of products (missiles and other ways of killing large numbers of people being obvious exceptions).

    America's biggest strength is nothing so vague and ephemerous as "creativity" and "ethnic diversity" (unless by ethnic diversity what you really mean is the disproportionate number of advanced science and engineering degrees given to non-Americans), it's just size of the population and access to wealth (raw materials, energy sources, etc.)

    As global economies and improving technologies make these strengths less important as compared to such things as precision and continuous improvement (not to mention a highly educated populace and a sane top leadership), I think that the future of the US will become a very different one than what happened there in the 20th century.
    --
    CC-licensed translations of Japanese fiction: http://tonygonz.blogspot.com/
  9. Innovation? by Jezza · · Score: 3, Insightful

    OK so we're saying that "we're good at innovation so we'll be okay" - but where is the evidence?

    What have we really innovated in software in recent times? Windows? From a user perspective little have changed since Windows95 (from an engineer's perspective little has changed from WindowsNT3.1!)

    Linux isn't an example either (firstly it's non-commercial, second it's a rewrite of Unix - the change is more social than technical).

    I guess the browser is THE standout example - now how long did it take for that to become a commodity item? Not long. In software innovation is hard, but refinement is easy. I don't think that this "innovation" thing is going to protect us (even if we are "better at it" and I don't see any evidence to suggest that we are anyway).

    The real issue here is the massive disparity of wages in the "global economy". American workers (and British, like me) can't live on the wages that Indian workers can, money here doesn't go as far (Indian workers are getting wages that are generous for the region - they are doing well). So we simply cannot compete - what is required is to attack the root cause of this - the disparity of the buying power of money across the global economy, because this outsourcing ISN'T a sign of the health of the global economy it's a symptom a massive distortion in the market.

    Of course how you do this is difficult to see, but THIS is the end that we need to look at. We need to be VERY careful how this is done, because large and rapid corrections would be catastrophic to Indian workers and they deserve protection too. But shipping IT jobs (and hence skills) to off shore locations isn't smart in the medium term. Indians aren't stupid, if they are doing all the technical work, why will they be happy to report to foreign management forever?

    I don't believe they will, Indians can be just as enterprising as anyone - they will have a ready work force of skilled workers, trained by OUR companies, it won't be hard to motivate them to set up on competition with US companies (stock options, maybe?)

    It seems that we're underestimating the skills and drive of the Indian people, this is a fundamental mistake.

    If we REALLY want to make the "global economy" work we must correct the distortions within it. I'm sure that the we can compete with India (and other emerging regions) if this is done (it won't kill the outsourcing, but at least we'll all be on a level playing field). Don't think I'm underestimating the Indians, I think they are as capable as any of us, and I think companies that are massively outsourcing either don't understand this OR the decision makers are not concerned with the long term (only short term profits).

  10. MBAs ruining technicians by leandrod · · Score: 5, Insightful
    > When I talk to CEOs about the career paths of the engineers in their companies, they say that many reach a career plateau very early, often after only five years. This happens not because of any technical deficiency, but because of a lack of "people" skills such as communication and teamwork.

    No news here. These are MBA-type CEOs that love to ruin people's lives because they can't lie enough to keep customers happy but screwed. The kinda guy who thinks he's a success because he's filthy rich, and who can't understand he needs people. He can't grok that people want to do something instead of bloodsucking like him. So his company lacks an Y-shaped career path.

    Contrast this to Germany where CEOs are engineers.

    --
    Leandro Guimarães Faria Corcete DUTRA
    DA, DBA, SysAdmin, Data Modeller
    GNU Project, Debian GNU/Lin
  11. You're living in a dream world by syousef · · Score: 4, Insightful

    In the words of Homer Simpson "You're living in a dream world...".

    Innovation costs money. Bleeding money off shore through outsourcing until the common guy on the street can't get a job is not going to help scientists and engineers innovate. The more you lower the standard of living in a country, the less people will be concerned with innovation and the more effort they'll need to spend just to stay afloat. Eventually you will simply bring the standard of your own country down closer to the level of the countries you outsource to.

    Outsourcing to another place where people work like slaves for peanuts just to keep themselves from starving is evil. Period. You reap what you sew. This BS WILL come back to haunt us all.

    Everyone who genuinely wants to work should be able to make a living. If they're willing to make a gigantic effort they should be able to expect proportional rewards.

    Sammy

    --
    These posts express my own personal views, not those of my employer
  12. Fawning admirer of CEO's by amightywind · · Score: 4, Insightful

    When I talk to CEOs about the career paths of the engineers in their companies, they say that many reach a career plateau very early, often after only five years. This happens not because of any technical deficiency, but because of a lack of "people" skills such as communication and teamwork. Moreover, engineers often come up short when they have to deal with people from different fields, such as manufacturing and marketing.

    How enfuriating! This CEO sycophant would have us (engineers) believe if we improved our social skills we could all be executives and all would be right with the world. Bunk. Corporate management structure is about the few controlling the efforts of the many. The structure is not imposed through democratic means - CEO's don't run for office. Neither is the structure merit based. (What do you think about the review process at your company?) It is based on ambition, alliances, and persuasion. Climbing the corporate ladder is considered by some to the the ultimate competition. To me the game resembles musical chairs more than anything else.

    One of the reasons the free software culture appeals to so many in this forum is that those who have reached a "career plateau" can bypass the rigid heirarchy of the corporate world and express themselves professionally though writing software. No management required!

    --
    an ill wind that blows no good
  13. Good field is these days in the US?? by FLOOBYDUST · · Score: 3, Insightful

    1) HVAC work 2) Carpenter, Electrician, Plumber. The rise of HGTV, This old house, etc has created a demand( artificial?) to do $10,000 remodeling jobs. People spend more money redecorating than our parents did. 3) Painter 4) Ceramic tile/ carpet Hmm do I see a trend?? We, in the "High Tech" are in a big trough. The "next big wave" hasn't started yet. Lets face it . The transistor is 50 years old.We are a silicon based industry. Silicon has become a commodity. We are all in a commodity business. , not unlike the Iron, Steel, Steam , Plastic and Coal industry before us. Once the general public (circa 1989) knew who Intel was, the handwriting was on the wall.

  14. an axe to grind by alizard · · Score: 3, Insightful
    IMHO, this guy is whistling in the dark. His axe to grind is obvious, he wants people to continue to pay tuition for engineering degrees.

    But what good does it have to add new, innovative engineers to the labor pool if there are no jobs for them and VCs aren't interested in funding *real* innovation that doesn't match the latest set of new/hot buzzwords?

    The other point is that yes, we have real creative artists in the engineering field. However, to develop them to the point where their skills can produce new inventions of the sort which will benefit us all, these people need starting points for their career paths, i.e. entry level programming, electrical engineering, etc.

    These are exactly the jobs that are going overseas.