This article makes interesting advertising for outsourcing firms and raises some very valid points but hardly can be considered either objective or entirely factual. The article
talks about the quality of Indian IT firms (and they do have some high quality professional firms). However, they fail to mention the many negative experiences U.S. firms have had with botched projects, poor service and support compounded by language issues despite claims that Indian English skills are adequate (albeit this is not true in every instance). One of the main issues offsetting these facts is that they work for a tenth of what their US counterparts do. Companies find it cost effective to allow them to make these mistakes and learn from them (which they seem to be doing). Outsourcing is a minefield that can lead to extraordinary success or disastrous failure. From an economic perspective the cost savings you reap from outsourcing you pay for in the long term (as a nation) by the erosion of your markets buying power. 3 Million consumers in your home market (making $70,000 dollars a year) are replaced by consumers in a market hostile to foreign competition making $8000 dollars a year (for the top tier anyway). Sooner or later America will realize this and legislation will be put into place to stop it. But in the meantime hang onto your seats
You bring up a good point. What happens to the money that is being "saved"? This borders on a question that I have been asking myself for a long time: what is an economy/how does it realy work?
Let's assume for a sec that the "saved" money does not leave the geographic region where it would have been spent by the now unemployeed consumers. Will this have a negative effect on the reginal economy? If it has an effect reginaly, how will it affect the nation? And so on and on on....
I asked my mom after the stock market crash of 1986, where does the money go when the stock market tanks?
That innocent question in my 12 year old mind triggered a life of realizing that we live in a world of bubble-gum cards. Things have no value save what someone is willing to spend.
In a pure sense, money in an economy comes from the Bureau of Printing and Engraving. They print currency, and pull currency from circulation. But that's only half the equation. What makes a dollar worth, well, a dollar is
Sooner or later America will realize this and legislation will be put into place to stop it.
Or, the problem will correct itself.
I hope that Americans are wise enough not to do something so foolish as to enact legislation to stop outsourcing. Unfortunately, people are that stupid.
Market correction takes many years. Although I'm lucky enough to have a job, I certainly wouldn't want to be unemployed with the hope that in a decade or so the market will fix itself and I'll have a job again.
Promptness is its own reward, if one lives by the clock instead of the sword.
The problems with outsourcing (Score:5, Interesting)
Re:The problems with outsourcing (Score:2)
Ever wonder why our free country requires so much legislation?
Re:The problems with outsourcing (Score:1)
Let's assume for a sec that the "saved" money does not leave the geographic region where it would have been spent by the now unemployeed consumers. Will this have a negative effect on the reginal economy? If it has an effect reginaly, how will it affect the nation? And so on and on on....
So, where does money in an e
Re:The problems with outsourcing (Score:2)
That innocent question in my 12 year old mind triggered a life of realizing that we live in a world of bubble-gum cards. Things have no value save what someone is willing to spend.
In a pure sense, money in an economy comes from the Bureau of Printing and Engraving. They print currency, and pull currency from circulation. But that's only half the equation. What makes a dollar worth, well, a dollar is
Re:The problems with outsourcing (Score:5, Insightful)
Or, the problem will correct itself.
I hope that Americans are wise enough not to do something so foolish as to enact legislation to stop outsourcing. Unfortunately, people are that stupid.
Re:The problems with outsourcing (Score:1)