5.24.2004

The Drum Major Institute has a number of interesting statistics, but this one really caught our eye:

Number of associate's degrees awarded to American college students every year: 600,0008

Number of U.S. information technology (IT), back office, customer service and sales jobs expected to move "offshore" by 2005: 600,000

One word: Oy. Lots of other fun facts, so go check 'em out! (via The Hamster!)

Tennessee first US state to enact anti-outsourcing law The Navhind Times (5/25)

In response to the outsourcing of jobs to India and other low-cost countries, Tennessee has become the first state in the United States to enact a law discouraging companies to offshore government work.

[snip]

Legislatures in 35 US states have introduced bills seeking to address the outsourcing issue, usually by banning the state from contracting with companies planning to employ offshore workers. None has become law because of intense lobbying by business groups.

The new law asks state procurement officials to prefer only US-based employees relating to data-entry and call-centre services. Lawmakers had overwhelmingly approved last month the legislation, which was signed into law last week.

“It kind of rubbed people the wrong way that state tax dollars we are giving were going out of the country,” lawmaker, Mr Dough Overbey was quoted as saying.

Normally we're not for legal moves like this, but if they're talking about firms that get State government contracts then we're all for it.

Offshore job use quickens; Use of cheap foreign workers widespread The Detroit Free Press (5/24)

New figures on offshore outsourcing suggest that American companies are sending even more white-collar jobs to low-wage countries such as India, China and Russia than researchers originally estimated.

Roughly 830,000 U.S. service-sector jobs -- ranging from telemarketers and accountants to software engineers and chief technology officers -- will move abroad by the end of 2005, a report this month by Forrester Research Inc. says.

The firm, based in Cambridge, Mass., projected in 2002 that 588,000 jobs would move overseas by the end of next year.

Forrester also increased its long-term job loss prediction, estimating that 3.4 million jobs will leave the United States by 2015. The company originally predicted long-term job loss of 3.3 million positions -- a figure that members of Congress and labor activists said was cause for great alarm. Researchers said the short-term losses surged as companies began experimenting, but the long-term numbers will likely moderate.

Forrester analysts boosted their short-term job loss expectations by 40 percent, based on updated job data provided by the U.S. Department of Labor.

But just in case you were feeling left out because you don't have a tech based job...
Executives in the financial services and technology industries have embraced the trend. Tech hubs such as Silicon Valley and Seattle have higher unemployment than the nation at large.

But the Forrester report says a new wave of white-collar offshoring among manufacturing companies -- automobile parts suppliers and agribusineses, for example -- will bring the trend to other parts of the country, particularly the Midwest. The region is reeling from offshoring of blue-collar jobs to low-wage countries in eastern Europe, Latin America and China. It's unclear what impact the loss of accountants, programmers and business analysts would have in places Detroit, Chicago and Cincinnati, McCarthy said.

We know what kind of impact the loss of these jobs will have: higher unemployment, lower tax revenues, increased reliance on public assistance, declines in other areas of the economy because folks don't have the purchasing power they used to, a rise in domestic violence, etc., etc., etc., We know what happens when unemployment rises, especially when it promises to be long-lasting.

We're all in this together folks, and we better get things turned around quick.

Lloyds shareholders back offshoring protest The Guardian (5/24)

Shareholders attending yesterday's Lloyds TSB annual meeting were greeted by protesters demonstrating against the bank's decision to export 1,500 call centre jobs to India.

The demonstration, organised by the Lloyds TSB Union, urged shareholders to back their campaign to halt so-called offshoring.

The staff union has collected 360,000 signatures in support of its campaign and large numbers of shareholders came forward to add their names.

Now that is impressive.

Yesterday Lloyds TSB shareholder Brian Hitchin said he had made a 1,000-mile round trip from Staffordshire to the meeting in Edinburgh to protest against offshoring.

"I feel very strongly about sending work out to the Middle East and closing down call centres here in the UK.".

Sort of a "not in our name" kinda thing, but this is what it is going to take folks: shareholders saying 'you know, I could make a little less on my investment if I knew the work was gonna stay in this country and help my community.' It's just that simple.

Offshoring to rise 65% to $3 bn in 2004: Gartner Business-Standard.com (5/24)

Offshore business process outsourcing (BPO) is expected to reach $3 billion in 2004, a 65 per cent increase from $1.3 billion in 2003, according to Gartner, a provider of research and analysis on the global information technology industry.

[snip]

Robert H Brown, principal analyst at Gartner’s sourcing group said in a statement, "Offshore BPO is an emerging, but immature, opportunity."

He added, "There will be slower adoption of offshore BPO through 2007. As the service delivery matures, and as users and service providers overcome various operational, cultural and socio-political issues, growth will resume toward the end of the decade and will synchronise more with the overall BPO growth."

Slower? Clearly this guy hasn't experienced the effects of offshoring first hand.

$3 Billion... and that's with the "savings"! Now imagine that money being pumped into our economy and then realize that it won't be.