slowdown

Outsourcing Grows as a Business Strategy

It absolutely is true in many industries. Only now it's hitting the white collar workforce instead of just manufacturing.


On May 18 04:28 AM epeon wrote:

> Is this true? Is outsourcing to Indian and China the next giant wave?
> It certainly was true a decade ago, but is it true today?
>
> In businesses that I have personal knowledge of, there seems to be
> a lot of discontent with Indian outsourcing. First, the exchange
> rates are not as favorable as they were. Secondly, the quality of
> the Indian technology is not what it was cracked up to be. Everyone
> in India has the title of engineer, but most of them are really IT
> people. In fact, most would be called IT techs, good for phone support
> but not a lot else. And, when you do get good Indian engineers they
> have to be trained and then you have a 30% turnover issue.
>
> Finally, many companies are realizing that transferring core technologies
> to a third party will atrophy the support of that technology in the
> home company. And, this third party looks at you at just another
> client. They have no qualms about using that technology for other
> clients.
>
> Of course, I could be wrong. But, look at WIT and INFY. Those stocks
> have not done anything for a decade. GE was the great outsourcer
> and their stock has not lit the world afire. Talk to GE people and
> many of them will tell you that they have invested a ton of money
> in India and it isn’t clear that there has been a good roi on it.
> Of course, since Jack Welch said it was great, I am sure that the
> paper trail will say it so.
>
> As far as GM transferring more production overseas that hardly is
> typical. They have the burden of UAW labor rates and labor attitude.
> Any other company with that burden would have long ago been on the
> slag heap of bankruptcy.
>
> So, I am not sold on this. I just don’t see it as the new wave.
>

Outsourcing Grows as a Business Strategy

We've been saying that for the last couple of years. Who's going to buy the cars or houses for that matter?


On May 18 12:07 PM wpdragon wrote:

> Thomas Victor writes : "But I agree that we will see increases in
> outsourcing, I think it will come due to desperation - as demand
> keeps falling, US companies will do anything to decrease costs"<br/>
>
> Yes, and by shipping more jobs overseas that means fewer jobs here
> and that means LESS demand here and that means a vicious circle just
> keeps getting more vicious as more outsourcing to cut costs causes
> more job losses here and housing gets pulled into the vortex...<br/>
>
>

Outsourcing Grows as a Business Strategy

You are out of touch - in the last 18 months all of my US based Engineers with the exception of two, have been replaces with Engineers in Mexico and China. As for me...I'm training my replacements and they will return to China. That said...IT/Clerical and Help Desk are already in India.....looks like my career change will be Teaching.


On May 18 09:04 AM nobull wrote:

> I think this article should have been dated 1999, not 2009.