4.16.2004

Economist: The real threat of offshoring Silicon Valley-San Jose Business Journal (4/15)

"It's natural for 'back office' jobs to move overseas, just as factory jobs did before them, but the growth of research and development in emerging global centers like India and China has far greater implications for U.S. competitiveness than the movement of these jobs," Mr. Singh says. "What if U.S. companies, by pursuing short run cost advantages, are creating future competitors in knowledge and innovation?"

What if? Ripples folks, ripples. Unforseen consequences: short term gain, long term losses. You gotta think about the implications but more on that soon.

(Note: the emphasis is ours)

A MUST READ:
U.S clients are holding back work Sify.com (4/16)

Wipro Vice Chairman Vivek Paul today said that customers in the US were holding on offshoring IT work to countries like India for the next six months, awaiting for the completion of American elections.

"In the back of layoffs, customers who want to offshore are saying: hold on, we can wait for six months," Paul told a news conference to announce the Wipro annual results here.

Bastards. Total fucking bastards.

Web site tries to track U.S. jobs moving offshore TwinCities.com PioneerPress (4/16)

Best Buy Co. and American Express Co. are among the companies popping up on a new "Offshore Tracker" Web site attempting to monitor the overseas employment moves of U.S. companies -- a hot-button issue this year on the presidential campaign trail.

More than 160,000 U.S. service-sector jobs have been exported since April 2001 by more than 150 U.S. companies, according to the Web site and its creators, the labor union Communication Workers of America and the Washington Alliance of Technology Workers, known as Washtech. The Web site address is: www.techsunite.org/offshore.

Check it out and be sure to tell them the Outsourced American sent you!

Hollywood In Canada Splits Unions Washington Post (4/16)

A group of Capitol Hill and California lawmakers have urged the movie industry to curb filming in foreign countries, portraying the next Russell Crowe movie, set to start shooting in Canada, as the latest example of foreign outsourcing to affect U.S. workers.

But the effort has caused a split among unions whose members make the movies. Lower-skilled union members, such as Teamsters, laborers and electricians, back efforts to prevent movie jobs from leaving the country. They have called on Universal Studios, which is shooting the Crowe film, to pack up and return to the United States.

Higher-skilled union members, such as directors, cinematographers and actors, instead favor tax incentives to make it more enticing for filmmakers to stay in the country. They side with the studios, which say the number of movies shot in the United States is increasing.

Swimmin' pools, movie stars...

4.13.2004

Into Thin Air FastCompany.com (4/04)

Offshoring jobs is an old story in the manufacturing sector. Now, service jobs once "Any knowledge-worker job is at some risk," says Michael T. Robinson, president of Careerplanner.com. Working with his firm and our own research, we've come up with a list of jobs and their relative vulnerability.

Extreme Risk | Accountant | Industrial Engineer | Production Control Specialist | Quality Assurance Engineer | Call-Center Operator | Help-Desk Specialist | Telemarketer

High or Moderate Risk | Automotive Engineer | Computer Systems Analyst | Database Administrator | Software Developer | Customer-Service Representative | CAD Technician | Paralegal/Legal Assistant | Medical Transcriptionist | Copy Editor/Journalist | Film Editor | Insurance Agent | Lab Technician | Human Resources Specialist

Low Risk | Airplane Mechanic | Artist | Carpenter | Civil Engineer | Headhunter | Interior Designer

Is your job on this list?

And don't forget it isn't just about jobs and putting people out of work: what about all those office buildings and parks that are now facing high vacancy rates because the jobs that used to fill them have gone offshore?

Ripples folks, ripples.

A MUST READ!
Look Into Their Eyes FastCompany.com (4/04)

"These people lost high-tech jobs to low-wage countries. Try telling them that offshoring is a good thing in the long run."

[snip]

James Victor
Coral Springs, Florida

Victor was evicted from his apartment after his contract programming job at First Data was offshored. He's working again, but says he has little hope for the future.

"Here I am 51, and I don't see myself in a situation where I can ever retire."

Yes, but your former bosses will so at least there's a happy ending for someone right?
Natasha Humphries
Santa Clara, California

A former Palm software engineer, Humphries, 30, says she traveled to India to train her replacements, and has testified before Congress about her experience.

"How much time does [any job] buy me before I find myself in this situation again?"

If you missed Natasha testifying before congress, well you missed a real treat: she was amazing. Even the senators were impressed.

100 faces of actual offshored workers. We may never take down this link.

Exposing the Conservative Straw Man - "Productivity" OpEdNews.com

"But offshoring isn't the problem for American workers!" conservatives shout. "It's the increase in productivity. American businesses need fewer workers because automation and hard work have made our workers more productive."

This is a tragic lie, and it's been bought hook, line, and sinker by most American politicians and even many economists.

Productivity is, very simply, the measurement of how many products or services can be produced for how many dollars of labor expended. But offshoring distorts productivity figures in two ways.

First, foreign labor is cheaper, but produces nearly identical amounts of product or service. The result is "increased productivity."

Second, many corporations don't put offshore labor onto their balance sheets as a labor expense. Because they hire offshore companies as subcontractors to do work previously done by their own employees, they get to reduce the number and cost of their employees while having an only slightly increased line-item on their P&L for the subcontractor. The result is that it looks like their remaining employees are getting more done, because the offshore employees are no longer counted in the productivity figures.

But the Indians and Chinese know something you won't hear on conservative "business" programs. While China and India eagerly let multinational corporations move work from America to their nations, they fiercely protect their own domestic industries primarily through the use of tariffs - taxes on imported goods - and the strict regulation of imported labor.

Offshoring jobs could drain public coffers, critics warn Corvallis Gazette-Times.com (m/dd)

Although proponents of offshoring dismiss such concerns as far-fetched or naive, some tax experts say the migration of lucrative technology jobs to India and China is shrinking U.S. employee tax contributions and could exacerbate state budget shortfalls. Others say offshoring could erode already-strapped Social Security, Medicare, workers compensation and other payroll-deduction funds more quickly than anticipated.

[snip]

ut up to one-quarter of lost wages translate to lost tax revenues, by conventional accounting methods. So if 3.3 million white-collar jobs and $136 billion in wages move overseas by 2015 as Forrester Research predicts, that means federal, state and local tax receipts could decline as much as $34 billion.

Top Financial Institutions Will Increase IT-Related Offshore Outsourcing Investments 34% Annually svbizink.com (4/13)

et outsourcing in the financial industry is undoubtedly on the rise.
TowerGroup estimates that the top 15 global financial institutions will
increase information technology spending on vendor-direct offshore outsourcing
by 34% annually -- representing an increase from $1.6 billion in 2004 to $3.89
billion in 2008.

[snip]

Additionally, many leading firms now own and operate their own
"captive" sites in countries like India or China, which allows for better risk
management and IT governance -- and thus a more confident transfer of riskier
IT and business processes to low-cost destinations.