India's Outsourcing Problems One of the most controversial aspects of the global economy has been the newfound freedom of companies from physical location and the subsequent spread of outsourcing jobs. No country had embraced tech outsourcing with the passion of India. Of late, problems there are beginning to rise: engineers start a project, get a few months' experience, and then bolt for greener pastures, bringing a level of attrition that replaces entire staffs within the course of a year. Combine that with salaries in Bangalore that are rising at 12% to 14% per year and it is no surprise that companies are leaving India for a slew of emerging hot spots for IT outsourcing such as the old Soviet Bloc, China, and Vietnam. This comes as companies such as Microsoft continue to laud outsourcing and proudly proclaim that it is here to stay, and it looks as if Ho Chi Minh City will be the next Bangalore.
posted on Dec 11, 2006 - View this thread

Bush's "pepperoni" defence of outsourcing. "India's middle class is buying air-conditioners, kitchen appliances and washing machines, and a lot of them from American companies like GE and Whirlpool and Westinghouse. And that means their job base is growing here in the United States. Younger Indians are acquiring a taste for pizzas from Domino's, Pizza Hut..."
posted on Feb 23, 2006 - View this thread

Outsource Your Own Job! -- "Says a programmer on Slashdot.org who outsourced his job: "About a year ago I hired a developer in India to do my job. I pay him $12,000 out of the $67,000 I get. He's happy to have the work. I'm happy that I have to work only 90 minutes a day just supervising the code. My employer thinks I'm telecommuting. Now I'm considering getting a second job and doing the same thing." " via BBspot.
posted on Aug 23, 2004 - View this thread

The Outsourcing Bogeyman by economics professor Daniel Drezner describes the myths, facts and economics behind offshore outsourcing. There is also a critique and rebuttal on Drezner's blog. (via kuro5hin).
posted on Mar 24, 2004 - View this thread

Say goodbye to more jobs? This is an interesting research report from the Gartner Group on the future of banking, money and economic transition. One of the participants at a conference that Gartner cites is Bernard Leitaer, who is interviewed here. Leitaer is the author of the book The Future of Money. He argues " the malaise Japan has suffered since the early 1990s reflects an economic challenge the whole developed world has begun to face. Today, European and U.S. factories, too, suffer from overcapacity. The vaunted productivity growth spurred by the digital revolution has raised the economy’s stall speed. If the natural growth rate of the U.S. economy has risen to 4% annually, anything less than that rate will cause firms to trim capacity. A firm’s revenue growth often must come at the expense of competitors as well as its own profits because companies have trouble raising prices. In response, companies cut costs any way they can, usually by laying off employees and squeezing suppliers, which causes further layoffs. For developed countries, the safety valves that limited damage during contractions in manufacturing may not work. In past recessions, laid-off factory workers in the Great Lakes states, for example, could migrate to the growing Sun Belt to find new jobs. In the present transition, areas with job growth may lie overseas." The long heralded rise of the information economy, the death of distance and the rise of the global knowledge workers is paradigm shift that our goverment leader's seem ill equiped to handle.
posted on Mar 16, 2004 - View this thread

Wal-Mart as Leviathan. "The giant retailer's low prices often come with a high cost. Wal-Mart's relentless pressure can crush the companies it does business with and force them to send jobs overseas. Are we shopping our way straight to the unemployment line?"
posted on Nov 14, 2003 - View this thread