3.21.2004

Where did jobs go? Look in Bangalore Pittsburgh Post-Gazette (3/21)
"BANGALORE, India -- This is the epicenter of a revolution."

[snip]

"Infosys has just begun doing a significant share of the software development work for Mellon Financial Corp. -- jobs once performed in Pittsburgh. A growing number of other local companies also are using the highly educated but much less expensive Indian workforce to do computer-based jobs. And if they haven't begun yet, they're thinking about it."

[snip]

"In the past year alone, employment in the high-tech sector in India rocketed up by 23 percent to 813,500 people, according to the National Association of Software and Services Companies.

The services being provided encompass almost every office job imaginable, from supervising credit card and mortgage accounts to analyzing stock portfolios and rating insurance applicants."

[snip]

"People across the world can plug into the Internet, the broadband, and become part of this global workforce," Nilekani said in his office overlooking the Infosys campus. "Globalization and technology have put the world into a trading ring, in a sense. Everybody is playing to their strengths."

[snip]

And the work done in India is becoming increasingly sophisticated -- well beyond the telemarketing and computer help-desk services familiar to many Americans. Anything that can be sent down a wire is up for grabs. That includes many of America's most coveted jobs: stock market equities research; engineering and design; product research and development; and accounting, including the preparation of tax returns.

[snip]

"Essentially what we are doing here is making our U.S. clients more efficient, more productive, more competitive and stronger, which means they can grow, they can create more jobs," Nilekani said."

Uh, don't believe the hype: all they're allowing US clients do is strip us of health-care and other benefits.

Read this next part very carefully...


"Ronald Blackwell, head of corporate affairs for the AFL-CIO, said the trend is a blow to American workers who were warned away from manufacturing and working with their hands, and told they would ensure their futures by educating themselves in new technologies.

"We were told with the first wave of de-industrialization not to worry ... We just need to educate ourselves and the jobs will come," Blackwell said. "With this second wave, that is precisely the group that outsourcing is hitting the hardest -- the people who are educated, the people who are professionals, who see the economic basis of their security, their family's security, disappearing before their eyes."

There also is another key difference between the current job movements and previous ones, University of Rochester professor Ronil Hira added.

Unlike the 1980s, when the semiconductor industry in the United States was losing billions of dollars and shifting thousands of jobs overseas, for example, employers this time around do not seem to be in dire economic straits, said Hira, a Rochester assistant professor of public policy who did his undergraduate work at Carnegie Mellon University.

Hira said the companies sending work overseas today are profitable, and most are gaining market share. Many of these companies are outsourcing, he said, because they think it's something they have to do to stay even with their peers."

Read that last part AGAIN.

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