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Comments on: Report: Offshore IT outsourcing helps economy

Shipping software and services tasks abroad is boosting the country's figures for its gross domestic product, overall employment and wages, according to a trade group.

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Cheaper goods and services
by Petaris March 30, 2004 8:53 AM PST
It seems like all the experts think that outsourcing will result in cheaper goods and services. While this may indeed be true they seem to have overlooked the fact that it won't matter that goods and services are cheaper because no one will have the money to purchase said goods and services.

Bush seems to think the answer is re-training for other jobs. What if we don't want other jobs? I like being in the IT industry and while there are other things I could do the fact is I chose this and I want to stay in this field.

Also has anyone noticed that all the people spouting this as a good thing for the US are the ones who have nothing currently to fear from this.

I do believe a global economy is a good idea but we keep outsourcing else where and no one is outsourcing to us. It would be different if we had some equallity across the board. Like if they had to pay the indians at least minimum wage (U.S.) with cost of living increases and benifits. Then it wouldn't be quite as attractive or if they could only outsource a certain percentage of their companys personel.

Sorry for the rant,

~Petaris
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Cheaper goods and services
by Petaris March 30, 2004 8:53 AM PST
It seems like all the experts think that outsourcing will result in cheaper goods and services. While this may indeed be true they seem to have overlooked the fact that it won't matter that goods and services are cheaper because no one will have the money to purchase said goods and services.

Bush seems to think the answer is re-training for other jobs. What if we don't want other jobs? I like being in the IT industry and while there are other things I could do the fact is I chose this and I want to stay in this field.

Also has anyone noticed that all the people spouting this as a good thing for the US are the ones who have nothing currently to fear from this.

I do believe a global economy is a good idea but we keep outsourcing else where and no one is outsourcing to us. It would be different if we had some equallity across the board. Like if they had to pay the indians at least minimum wage (U.S.) with cost of living increases and benifits. Then it wouldn't be quite as attractive or if they could only outsource a certain percentage of their companys personel.

Sorry for the rant,

~Petaris
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This study is ludicrous.
by March 30, 2004 8:57 AM PST
What do you expect study results to be when one is reviewing one's self? The sponsors of the study want to escape criticism for their outsourcing practices, so they created a study to say it was economically desirable. It may be economically desirable to them, but certainly not the overall economy. To say that this practice "boosts business and consumer spending and increases economic activity" is absurd. People with no jobs or lower paying jobs certainly cannot buy more. The rich business executives at IBM, EDS and Accenture can buy more and hire more domestic workers. To say that "Cost savings and use of offshoure resources increases productivity" is outrageous. It may increase productivity in other countries, but U.S. workers cannot exactly be more productive if they are unemployed. I'm sure the Republicans needed a study to justify this outsourcing practice for election time. I don't have the time to research it, but it would be very interesting to know who Global Insight really is. Probably a subsidiary of Haliburton.
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This study is ludicrous.
by March 30, 2004 8:57 AM PST
What do you expect study results to be when one is reviewing one's self? The sponsors of the study want to escape criticism for their outsourcing practices, so they created a study to say it was economically desirable. It may be economically desirable to them, but certainly not the overall economy. To say that this practice "boosts business and consumer spending and increases economic activity" is absurd. People with no jobs or lower paying jobs certainly cannot buy more. The rich business executives at IBM, EDS and Accenture can buy more and hire more domestic workers. To say that "Cost savings and use of offshoure resources increases productivity" is outrageous. It may increase productivity in other countries, but U.S. workers cannot exactly be more productive if they are unemployed. I'm sure the Republicans needed a study to justify this outsourcing practice for election time. I don't have the time to research it, but it would be very interesting to know who Global Insight really is. Probably a subsidiary of Haliburton.
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Offshore the authors jobs
by March 30, 2004 8:58 AM PST
The authors jobs writing this garbage should be offshored to India. I'm sure Indian spin doctors can write the same crap for less.

Who do they think is going to believe this stuff? I nominate this article for the spin doctor of the year award.
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Offshore the authors jobs
by March 30, 2004 8:58 AM PST
The authors jobs writing this garbage should be offshored to India. I'm sure Indian spin doctors can write the same crap for less.

Who do they think is going to believe this stuff? I nominate this article for the spin doctor of the year award.
Reply to this comment
I am in favor of a Global Economy!
by tellangon March 30, 2004 9:21 AM PST
I have decided that I am all for a global economy and everything that goes with it. Let's start with these areas:

1) Congress should place an immediate "call" on all outstanding debt owed to the United States. If a country can't pay up, no problem. They go into receivership with the US as the default owner of all assets, but they can't do business with the US until the debts are paid in full.

2) Begin charging fair market price for the food that is being shipped all over the globe. Let's not forget the cost of shipping.

3) The cost of our global "police force" should be paid for by the global economy. There seems to be quite a demand & we seem to be just about the only supply, so the profit the US should see from this should be great! We can start with the oil in Iraq. Maybe then our gas prices will drop a bit.

4) Business knowledge is another area that can be pricey. I would expect if we placed a "supply & demand" price on this, then US business analysts & consultants should be paid as much or more than the executives that are benefiting from the current decimation of the US middle class.

5) Hey, speaking of the executives -- surely, the shareholders of US firms should be looking for board members and executives that come with the lowest price tag to run their firms, too. Can we expect to see this happen soon?

Meanwhile, we really need to get into the same sort of background checking for IT professionals worldwide. Check those credentials! If that MBA is really a mail order certificate & not a Master's of Business Administration from a university meeting US accredidation standards, then that individual (and the company that sent them) are "off the list". If these project managers can't produce a verifiable portfolio of US projects meeting PMI standards, sorry -- you can't be a project manager, either.

Then, let's move on to legal issues. Companies that are "offshore" now can claim that they are not subject to US laws if they do something a US firm would be shut down for doing. So, I suppose the only thing we can do is make all offshoring firms operate inside of countries that are US posessions. So, just have your government turn over your entire country to the US, disarm your military, convert your money to the US dollar (at current exchange rates, of course), and then you can apply to provide offshore services.

Of course, in a global environment, we must ensure that we are globally safe in our homes and workplaces. All businesses and homes around the globe would need to meet the same level of "code" that those of us in the US have to abide by. Get busy & condemn and demolish those shanties! Get the OSHA inspectors into the factories & shut down those violators until they get it right! No business for you until you do!

There -- now that we are all one big happy global economy, everyone should remember to add April 15th to their annual calendar as a way to pay the US government back for all of this as well.
Reply to this comment
I am in favor of a Global Economy!
by tellangon March 30, 2004 9:21 AM PST
I have decided that I am all for a global economy and everything that goes with it. Let's start with these areas:

1) Congress should place an immediate "call" on all outstanding debt owed to the United States. If a country can't pay up, no problem. They go into receivership with the US as the default owner of all assets, but they can't do business with the US until the debts are paid in full.

2) Begin charging fair market price for the food that is being shipped all over the globe. Let's not forget the cost of shipping.

3) The cost of our global "police force" should be paid for by the global economy. There seems to be quite a demand & we seem to be just about the only supply, so the profit the US should see from this should be great! We can start with the oil in Iraq. Maybe then our gas prices will drop a bit.

4) Business knowledge is another area that can be pricey. I would expect if we placed a "supply & demand" price on this, then US business analysts & consultants should be paid as much or more than the executives that are benefiting from the current decimation of the US middle class.

5) Hey, speaking of the executives -- surely, the shareholders of US firms should be looking for board members and executives that come with the lowest price tag to run their firms, too. Can we expect to see this happen soon?

Meanwhile, we really need to get into the same sort of background checking for IT professionals worldwide. Check those credentials! If that MBA is really a mail order certificate & not a Master's of Business Administration from a university meeting US accredidation standards, then that individual (and the company that sent them) are "off the list". If these project managers can't produce a verifiable portfolio of US projects meeting PMI standards, sorry -- you can't be a project manager, either.

Then, let's move on to legal issues. Companies that are "offshore" now can claim that they are not subject to US laws if they do something a US firm would be shut down for doing. So, I suppose the only thing we can do is make all offshoring firms operate inside of countries that are US posessions. So, just have your government turn over your entire country to the US, disarm your military, convert your money to the US dollar (at current exchange rates, of course), and then you can apply to provide offshore services.

Of course, in a global environment, we must ensure that we are globally safe in our homes and workplaces. All businesses and homes around the globe would need to meet the same level of "code" that those of us in the US have to abide by. Get busy & condemn and demolish those shanties! Get the OSHA inspectors into the factories & shut down those violators until they get it right! No business for you until you do!

There -- now that we are all one big happy global economy, everyone should remember to add April 15th to their annual calendar as a way to pay the US government back for all of this as well.
Reply to this comment
The ITAA is Attempting to Justify their OffShore Existence
by kmsaylor March 30, 2004 9:27 AM PST
This is the most absurd news item that I have ever read. This is nothing more than an attempt by the members of the ITAA (IBM, EDS, Accenture) to justify their current off-shore existence and the lay off of several hundred, if not thousands, of their employees.

The claims made here are impossible! "As the benefits compound over time, the U.S. economy operates more efficiently, achieves a higher level of output, creates more than twice the number of jobs than are displaced, and increases the average real wage."

I would really appreciate the organization to come to my house and explain how this is possible. I was laid off at the end of June 2003 by an IT consulting firm and have only now begun to work again, taking a %25 cut in pay! I'd like the organization to explain to my family how moving IT projects offshores increases the number of jobs in the States and increases the overall wage.

If these jobs do exist, they are being filled by the IBM's, EDS's, and Accenture's then sent overseas to be filled...

Ridiculous claims!

ITAA - Take off the blinders now and open your eyes to what is really happening? How can you ethically make these determinations when I'm sure all of you know someone who has been laid off and been unable to find future employment!
Reply to this comment
The ITAA is Attempting to Justify their OffShore Existence
by kmsaylor March 30, 2004 9:27 AM PST
This is the most absurd news item that I have ever read. This is nothing more than an attempt by the members of the ITAA (IBM, EDS, Accenture) to justify their current off-shore existence and the lay off of several hundred, if not thousands, of their employees.

The claims made here are impossible! "As the benefits compound over time, the U.S. economy operates more efficiently, achieves a higher level of output, creates more than twice the number of jobs than are displaced, and increases the average real wage."

I would really appreciate the organization to come to my house and explain how this is possible. I was laid off at the end of June 2003 by an IT consulting firm and have only now begun to work again, taking a %25 cut in pay! I'd like the organization to explain to my family how moving IT projects offshores increases the number of jobs in the States and increases the overall wage.

If these jobs do exist, they are being filled by the IBM's, EDS's, and Accenture's then sent overseas to be filled...

Ridiculous claims!

ITAA - Take off the blinders now and open your eyes to what is really happening? How can you ethically make these determinations when I'm sure all of you know someone who has been laid off and been unable to find future employment!
Reply to this comment
Showing 2 of 2 pages (42 Comments)
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