Outsourcing

[Rob]

Who thinks outsourcing to overseas countries will eventually kill the local IT industry and affect jobs?

[Will.Spencer]

I don't think it will kill local IT industry, but I do believe it will change it significantly.

Offshoring experienced a huge leap after 9/11, when our idiot government made it much more difficult for skilled foreign workers to live and work in the United States.

Because they couldn't come to the jobs, the jobs went to them.

Less expensive places on earth have a comparative advantage for some tasks, but not all tasks.

The people most hurt in the first world are those on the bottom rungs of the career ladder -- folks whose jobs can be sent offshore.

[kareja]

I don't think it will kill local IT industry, but I do believe it will change it significantly.

Offshoring experienced a huge leap after 9/11, when our idiot government made it much more difficult for skilled foreign workers to live and work in the United States.

Because they couldn't come to the jobs, the jobs went to them.

Less expensive places on earth have a comparative advantage for some tasks, but not all tasks.

The people most hurt in the first world are those on the bottom rungs of the career ladder -- folks whose jobs can be sent offshore.

That is an excellent viewpoint.

I feel the majority of the work is still within the country. Only a minor share of the IT projects gets outsourced, which by outsourcing would be more beneficial than doing it within the country.

But as I said the majority still lies within the country.

At places like India, Pakistan, etc... $20 is a big sum, most of the student's mothly expenditure (like freaking out for movies, etc...) is just a $20 which is rather very little sum for those in US. So they are willing to provide the services at cheaper rates (for those in US, UK) and at the same time they too benefit.

[imported_Steve]

Where I work, they just shipped 300 IT jobs off to Malaysia, which was really sad as one of those jobs were mine so I finish there at the end of the year.

I think its impacting alot of local employment as most IT people are now finding it harder to get a secure job.

[Will.Spencer]

Malaysia, if they can keep stable political and legal systems, is going to be really hot economically in the next decade.

[suzeygal]

Hi,
I don't think off shoring/overseas outsourcing will necessarily kill the IT industry and jobs so to speak, but I can see it continuing to do damage.

Some of the overseas outsourcing ventures have made a turnabout face whereas they have eventually created some jobs here when the company actually needs to have a U.S. based location.

I think outsourcing can be a terrific thing, but essentially, I think for the U.S. economy, businesses should consider outsourcing rurally, or within the U.S. as an option before turning trade overseas.
My opinion.

Susan

[Will.Spencer]

Originally Posted by suzeygal

I don't think off shoring/overseas outsourcing will necessarily kill the IT industry and jobs so to speak, but I can see it continuing to do damage.

Well, "damage" as viewed from the point-of-view of the American IT industry.

"Success" as viewed by the shareholders who are now experiencing higher profit margins and by the customers who are now experiencing lower prices.

Originally Posted by suzeygal

I think outsourcing can be a terrific thing, but essentially, I think for the U.S. economy, businesses should consider outsourcing rurally, or within the U.S. as an option before turning trade overseas.

You are so right!

Many American companies would do much better by outsourcing to Mississippi and Alabama than by offshoring to foreign countries.

[imported_Steve]

Here in Australia, outsourcing is really taking jobs away from locals.
It's terrible, but I can see how companies want the most they can get for the least money, but it will come to a point where locals can no longer get a job.

[cmpolis]

Outsourcing is starting to backfire for some companies. I read recently that Dell is moving all their support back to the states because the quality is so poor overseas.

[Will.Spencer]

One of our business partners recently moved their first-tier call center operations to Mexico.

The trouble is that the folks they contracted with down there often do not speak English.

My knowledge of Spanish extends only to things that I can eat or drink ops:, so this makes phone calls lengthy -- if not productive.

[compnut]

I think outsourcing for anything is downright wrong. We need to keep all of our work here in our own country.

I think Dell outsources their work to India or somewhere, and their IT really stinks. I've only called them twice, and neither time did they help. I ended up just saying, "Nevermind; I'll just fix it myself." Also, I couldn't under their thick accent. It was pretty frustrating.

At any rate, IT should stay within this country, along with everything else. The economy might show a boost if it were so.

[Fry]

I agree with that comment for the most part.
But its a fact of business - less cost for them so they do it. Even though it seems to lessen the companies popularity, they still seem to see outsourcing as a positive investment.

[deuce]

Well outsourcing IT is bad but outsourcing industry is worse. I hate how much money the US is pouring into China just because our businesses care more about their pockets than their country.