Friday, July 02, 2004

Outsourcing Watch: Critics Rebutted by Their Own Allies

When proponents of outsourcing are arguing about how it is going to help the American people, how it's not a big deal, etc. in order to maximize their credibility maybe they ought to tell their less diplomatic (more honest?) allies from talking publicly.

Thursday, July 01, 2004
Chamber of Commerce CEO Endorses Outsourcing

by Rachel Konrad

Donohue, speaking Wednesday night to the Commonwealth Club of California, said he believes exporting high-paid tech jobs to low-cost countries such as India, China and Russia saves companies money that they may use to create new jobs for Americans.

CEOs from Wall Street to Silicon Valley have embraced the theory, and the pace of offshoring has shocked statisticians and economists.

In early June, the Bureau of Labor Statistics downwardly revised projections for white-collar job growth for 2002-2003, based on accelerated job migration. The agency reported that seven of the 10 occupations expected to gain the most ground are low-wage occupations that do not require a college degree.

Technology consulting firm Gartner Inc. estimates that 10 percent of computer services and software jobs will be moved overseas by the end of this year.

The job outlook in the San Francisco Bay area - home to legions of unemployed programmers since the dot-com bust of 2000 - is particularly bleak. Nearly one-third of local workers, or 31 percent, are worried about losing their jobs, compared to 18 percent for the nation, according to a survey released Wednesday by staffing firm Hudson Highland Group, Inc.

Donohue acknowledged the pain for people who have lost jobs to offshoring - an estimated 250,000 a year, according to government estimates. But pockets of unemployment shouldn't lead to "anecdotal politics and policies," he said, and people affected by offshoring should "stop whining."

"One job sent overseas, if it happens to be my job, is one too many," Donohue said. "But the benefits of offshoring jobs outweighs the cost."

Although call center jobs have been migrating to the Philippines and Malaysia since the 1990s, in the past two years cash-strapped companies have exported high-paying jobs in research and development, software engineering, chip design and biotechnology startups. Most of those jobs have gone to India and China, whose universities graduate hundreds of thousands of engineers each year.

General Electric Co., which offshores about 70 percent of its technology work, designs medical equipment in its Chinese research center and studies nanotechnology at a lab in India.

Motorola is hiring 5,000 researchers for a global research and development center in Beijing, while Intel employs hundreds of researchers at its Russia Software Development Center in Nizhny Novgorod.

I first saw this site via TPM, Josh Marshall's site, and one thing I have to say for this guy - at least he's honest. Everytime I talk to globalism / and radical free trade proponents (never mind that we don't have truly free markets) I always get the sense that they're trying to maintain deniable plausibility, either that or they want to believe that they aren't screwing over not just ordinary people but the system to defend a compltely bankrupt process. Who would afterall want to be the apologist for not just individual tragedy but systemic looting? Yet they convince themselves they aren't in the wrong, possibly because the instinct to ally one's self with the winning side is stronger. I don't pretend to understand the psychology of self-deception. I just know that whomever practices it sells their soul for pieces of silver.

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