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Study Finds Cost Major Factor In Outsourcing Positions
theodp writes "Debunking claims to the contrary, a new study from Duke University asserts that it is purely cost savings, and not the education of Indian and Chinese workers, or a shortage of American engineers that has caused offshore outsourcing. 'The key advantage of hiring Chinese entry-level engineers was cost savings, whereas a few respondents cited strong education or training and a willingness to work long hours. Similarly, cost savings were cited as a major advantage of hiring Indian entry-level engineers, whereas other advantages were technical knowledge, English language skills, strong education or training, ability to learn quickly, and a strong work ethic.' The article goes on to point out that despite this, outsourcing will continue to be a problem for US workers in coming decades; new elements of traditional corporations like R&D may in fact be next on the outsourcing chopping block."
I find that it's outsourcing the reason I don't buy support contracts anymore...
Psst.. hey bud.. here's a hint: it's called "The Midwest".. and.. keep this under your hat.. you can get jobs there.
this is typpical supply side strategy, the problem is when you attack wages rather than other inputs as cost, it also attacks the biggest contributor to both profits and GDP, consumption!
2 basic economic equations are in play here:
gdp = C+I+G+NX = (income - savings)+I+G+NX
profits = costs - revenue = (wages + other costs) - (wages + other income such as capital gains)
when you kill wages/income, you kill your own profits as well as us gdp.
there is a time lag involved in this, but it comes back to bite you pretty quickly.
this is reflected whenever Reagan style policies (not exclusive to the republican party) are put into effect... there is always a recession a short time later, which is alleviated once the policies are countered/rolled back.
right now congress is STILL operating on the myth that there are short supplies of labor in "X" sector, which is bull, what there is is a shortage of cheap labor who dont care about long term benefits or retirement in sector "X"
plenty of on the ground info on this here
VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
Actually slave owners did force breed their slaves.
http://dukenews.duke.edu/2006/10/outsourcing.html here's the study http://www.boozallen.com/media/file/Globalization_ White_Collar_Work_v3.pdf
This new information should be a wakeup call for policy-makers. The irony is that corporate profits no longer know national boundaries. Solutions are going to take political leadership, and real committment. If no solutions are forthcoming, we will continue to see significant employment displacement here, with all the social problems that that implies.
The indians in cities like mumbai work for 13 hours a day on an average, also in the south indian cities like Chennai & Hyderabad the bosses like you are worshipped as God. So there are about 2000 small companies who give jobs but instead of paying salary they ask money from the candidate. The candidate doesn't mind because that will give him a head start into IT industry where every one wants to hire an experienced developer.
The next goal(dream) for every Indian developer is to get h1b visa into usa.
Bosses like you make them report status on a project at unearthly hours like 2:00 am(4:30 pm EST, yeah you just wanted to check the status before going home, don't you). Imagine doing that with Tim here.
If a job vacancy ad mentions the word "fresh" then there will be 6000 applications with at least Master's degree in Computer Application.(10+2+3+3 yrs education).
If corporations can outsource labor, why can't I outsource purchase?
You can. But when they go to make a purchase, most people make price the priority--just like companies. Boycotting will never get the momentum necessary to change corporate behavior. It didn't with the "buy American" campaign as it pertained to cars and it won't work now.
I honestly don't know what can be done but I'm willing to entertain the idea of the government taking a hand in this.
I'm not in any way contesting the fact that many prominent American innovators claim European heritage. To do so would be straight silly. But it would be just as foolish to ignore the vast portfolio of scientific and technological contributions of many Americans who do NOT consider Europe their motherland.
In neglecting the accomplishments of non-European Americans, you're completely missing the fact that America's reputation for innovation and discovery is built (in part) upon the hard work and ingenuity of some of the best and brightest folks from other parts of the globe. You're looking at innovation as if it's a contest between races. It's not. That's how the last season of Survivor began, but it's not the way American innovation occurs.
Seriously, if we're going to sing the praises of American resourcefulness, let's not forget the verse about peanut brittle