As more jobs keep moving overseas, it's getting noticed

[link|http://www.statesman.com/business/content/auto/epaper/editions/today/business_e3bfee2fa1c550361031.html|story]

As executives discuss use of foreign labor to cut costs, jobless Americans protest

By Marilyn Geewax
WASHINGTON BUREAU
Friday, June 27, 2003

NEW YORK -- A backlash is growing against one of the business world's hottest trends: moving a wide range of high-tech and service-sector jobs to developing countries.

At the Waldorf-Astoria hotel Thursday, about 125 executives attended the 2003 Strategic Outsourcing Conference, sponsored by the Conference Board, a business association.

They heard Chris Disher, a vice president of the consulting firm Booz Allen Hamilton, describe how companies can lower their costs by as much as 80 percent by shifting tasks such as computer programming, accounting and procurement to India, the Philippines, China, Malaysia and elsewhere in the developing world.

"There's just no place left to squeeze" costs in the United States, he said. "We need to look to other areas."

Outside the Waldorf, dozens of high-tech workers with advanced degrees but no jobs marched in protest, carrying signs with slogans such as "Outsourcing Is Stealing Billion$ From America."

"People are giving us the thumbs-up as they walk by," said protester John Bauman, president of the Organization for the Rights of American Workers.

"I can't find work," said Bauman, who nine months ago lost his job in the information technology sector. "The bottom line is there are no jobs out there -- they're all being taken by foreign workers."

A recent study by Forrester Research Inc. estimated that by 2015, about 3.3 million jobs, worth about $136 billion annually in wages, will have moved offshore as U.S. employers look for ways to reduce salary costs and office rents.

As companies such as Dell Computer Corp., Intel Corp. and Computer Sciences Corp. have cut jobs by the thousands, they have expanded in countries overseas such as India, Russia and China.

Central Texas job losses have included computer programmers and call centers that have gone overseas. Many of the high-tech jobs moving offshore aren't low-skilled manufacturing but skilled, white-collar jobs, such as computer programmers and other closely related jobs.

"I think it's pretty significant," said Jon Hockenyos, a local economist. "It took away a middle-tiered income option for people."

For example, in Texas, 17,873 computer programing and other closely related jobs were lost between the the last quarter of 2000 and the same period in 2002.

Outsourcing has already started drawing attention on Capitol Hill. Earlier this month, the House Small Business Committee held a hearing to examine the practice.

"The U.S. economy is growing and creating jobs; it's just not Americans filling those jobs," said the panel's chairman, Rep. Donald Manzullo. "They have been moved overseas where foreigners will work for a lot less."

For example, a beginning computer programmer in the United States might earn $60,000 a year, while the same job in India pays less than $6,000.

U.S. companies have been outsourcing blue-collar jobs since the 1970s. But in the 1990s, outsourcing of white-collar jobs began to take off as new communication technologies, such as videoconferencing and instant messaging, allowed companies to knit together far-flung work forces.

At the same time, poorer countries were cranking out more college graduates who could perform as well as their U.S. counterparts. India alone is estimated to have more than a half million computer engineers.

In this decade, what had started as a trickle of jobs moving overseas is turning into a torrent as companies struggle to scratch out profits. For example, Dell next month will open a 500-seat call center in Panama. The center is similar to one Dell opened in India two years ago. By January, 46 percent of Dell's work force will be located outside the United States.

Disher said U.S. companies have no choice but to find ways to lower costs if they are to survive in a fiercely competitive global market.

"It's just getting more and more difficult" to turn a profit in a sluggish economy, he said.

To paraphrase Shakespeare...

I'm not advocating killing them, but getting in their face in front of buildings where they are attempting to "sell" executives on outsourcing WOULD be a GREAT idea....Just like these people did....

Perhaps a little more organized. Who has the time/money to organize something like this? I certainly don't, but someone should be able to.

Perhaps this should become a 'cause celeb for the AFL CIO, TeleComm Workers of America or the ACM?

If these consultants think that Indian or Chinese families will EVER have the money to purchase American products made in their countries, they are sadly mistaken.

I think the idea now is to devalue the dollar all to hell, where 90,000 US is equal to the 9,000 US that most Indians make. But, oh the havoc that will wreak on our economy...

It's time some of us voted differently, too.

Post #107,649 by lincoln 6/27/03 10:53:06 PM Reply	As more jobs keep moving overseas, it's getting noticed [link\|http://www.statesman.com/business/content/auto/epaper/editions/today/business_e3bfee2fa1c550361031.html\|story] As executives discuss use of foreign labor to cut costs, jobless Americans protest By Marilyn Geewax WASHINGTON BUREAU Friday, June 27, 2003 NEW YORK -- A backlash is growing against one of the business world's hottest trends: moving a wide range of high-tech and service-sector jobs to developing countries. At the Waldorf-Astoria hotel Thursday, about 125 executives attended the 2003 Strategic Outsourcing Conference, sponsored by the Conference Board, a business association. They heard Chris Disher, a vice president of the consulting firm Booz Allen Hamilton, describe how companies can lower their costs by as much as 80 percent by shifting tasks such as computer programming, accounting and procurement to India, the Philippines, China, Malaysia and elsewhere in the developing world. "There's just no place left to squeeze" costs in the United States, he said. "We need to look to other areas." Outside the Waldorf, dozens of high-tech workers with advanced degrees but no jobs marched in protest, carrying signs with slogans such as "Outsourcing Is Stealing Billion$ From America." "People are giving us the thumbs-up as they walk by," said protester John Bauman, president of the Organization for the Rights of American Workers. "I can't find work," said Bauman, who nine months ago lost his job in the information technology sector. "The bottom line is there are no jobs out there -- they're all being taken by foreign workers." A recent study by Forrester Research Inc. estimated that by 2015, about 3.3 million jobs, worth about $136 billion annually in wages, will have moved offshore as U.S. employers look for ways to reduce salary costs and office rents. As companies such as Dell Computer Corp., Intel Corp. and Computer Sciences Corp. have cut jobs by the thousands, they have expanded in countries overseas such as India, Russia and China. Central Texas job losses have included computer programmers and call centers that have gone overseas. Many of the high-tech jobs moving offshore aren't low-skilled manufacturing but skilled, white-collar jobs, such as computer programmers and other closely related jobs. "I think it's pretty significant," said Jon Hockenyos, a local economist. "It took away a middle-tiered income option for people." For example, in Texas, 17,873 computer programing and other closely related jobs were lost between the the last quarter of 2000 and the same period in 2002. Outsourcing has already started drawing attention on Capitol Hill. Earlier this month, the House Small Business Committee held a hearing to examine the practice. "The U.S. economy is growing and creating jobs; it's just not Americans filling those jobs," said the panel's chairman, Rep. Donald Manzullo. "They have been moved overseas where foreigners will work for a lot less." For example, a beginning computer programmer in the United States might earn $60,000 a year, while the same job in India pays less than $6,000. U.S. companies have been outsourcing blue-collar jobs since the 1970s. But in the 1990s, outsourcing of white-collar jobs began to take off as new communication technologies, such as videoconferencing and instant messaging, allowed companies to knit together far-flung work forces. At the same time, poorer countries were cranking out more college graduates who could perform as well as their U.S. counterparts. India alone is estimated to have more than a half million computer engineers. In this decade, what had started as a trickle of jobs moving overseas is turning into a torrent as companies struggle to scratch out profits. For example, Dell next month will open a 500-seat call center in Panama. The center is similar to one Dell opened in India two years ago. By January, 46 percent of Dell's work force will be located outside the United States. Disher said U.S. companies have no choice but to find ways to lower costs if they are to survive in a fiercely competitive global market. "It's just getting more and more difficult" to turn a profit in a sluggish economy, he said. lincoln "Four score and seven years ago, I had a better sig" [link\|http://users3.ev1.net/~bconnors/resume.htm\|VB/SQL resume] [link\|http://users3.ev1.net/~bconnors/tandem_resume.htm\|Tandem resume] [link\|mailto:bconnors@ev1.net\|contact me]
Post #107,967 by mmoffitt 6/30/03 11:12:54 PM Reply	This is about as short-sighted as I would expect ... capitalists to be. Disher said U.S. companies have no choice but to find ways to lower costs if they are to survive in a fiercely competitive global market. "It's just getting more and more difficult" to turn a profit in a sluggish economy, he said. And whom exactly do these brilliant biznessmen think are going to purchase their products when we're all drawing unemployment? bcnu, Mikem If you accept what they hand you, you deserve what you get.
Post #107,970 by tablizer 6/30/03 11:35:27 PM Reply	scary logic Disher said U.S. companies have no choice but to find ways to lower costs if they are to survive in a fiercely competitive global market. "It's just getting more and more difficult" to turn a profit in a sluggish economy, he said. Does that mean they will start killing employees just before retirement to avoid paying pentions? Outsource the CEO's while they are at it. ________________ oop.ismad.com
Post #107,997 by Silverlock 7/1/03 9:43:28 AM Reply	Just when did Dell's service nosedive? I seem to remember it happening just after they outsourced it. You get what you pay for is still true. Saving money short term, losing customers due to bad value long term. Yep, only a consultant would think this is a good idea. ----------------------------------------- [link\|http://www.talion.com/questionw.html\|?W] Where were you in 72?
Post #108,035 by gdaustin 7/1/03 12:09:38 PM 7/1/03 12:10:41 PM Reply	Kill All The Consultants? To paraphrase Shakespeare... I'm not advocating killing them, but getting in their face in front of buildings where they are attempting to "sell" executives on outsourcing WOULD be a GREAT idea....Just like these people did.... Perhaps a little more organized. Who has the time/money to organize something like this? I certainly don't, but someone should be able to. Perhaps this should become a 'cause celeb for the AFL CIO, TeleComm Workers of America or the ACM? If these consultants think that Indian or Chinese families will EVER have the money to purchase American products made in their countries, they are sadly mistaken. I think the idea now is to devalue the dollar all to hell, where 90,000 US is equal to the 9,000 US that most Indians make. But, oh the havoc that will wreak on our economy... It's time some of us voted differently, too. Edited by gdaustin July 1, 2003, 12:10:41 PM EDT Expand All History
Post #108,049 by ben_tilly 7/1/03 12:32:53 PM Reply	Not only a consultant... Wall St notices the profit, extrapolates and lifts the stock price. CEOs into flipping shares at a profit have noticed this... Cheers, Ben "good ideas and bad code build communities, the other three combinations do not" - [link\|http://archives.real-time.com/pipermail/cocoon-devel/2000-October/003023.html\|Stefano Mazzocchi]

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