Offshoring by US companies surges: survey

[ensho]

http://news.yahoo.com/s/afp/20090803/ts_alt_afp/useconomyjobsitglobalization_20090803211424


US companies are increasingly turning to offshoring their functions to achieve cost savings, and few plan to bring those jobs back to the United States, the Conference Board said Monday.

The number of US companies with a corporate offshoring strategy in place more than doubled in the past three years, according to the fifth annual report on offshoring trends, published by Duke University in collaboration with the Conference Board.

-snip-

"Sixty percent of companies that had already offshored say they have aggressive plans to expand existing activities, and very few plan to relocate activities back to the United States," it said.

-snip-

"Outsourcing innovation in engineering, research and development, product and software development, and knowledge processes makes companies, whatever their country of origin, more competitive by increasing speed to market and compensating for domestic talent gaps," Heijmen said.
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we have to come up with new stuff or become a tourist destination.

or think and live 'local'?

[ixion]

1. tourism is a no-go as long as there is the so-called 'war' on terror

and a bunch of fascist departments like DHS and TSA, and stupid legislation like the unPATRIOTic Act, and the MCA.

Long and the short of it is this: we're screwed unless we bring jobs back to the states and penalize companies that offshore/outsource.

[ensho]

2. they ain't coming back - we have to think of new ways to unscrew ourselves

nt

[ixion]

3. There is no way, in that case

it's simple economics. My premise still stands: We're screwed.

[Deja Q]

14. President Obama started doing that, with Steve Ballmer throwing a psycho tantrum, about

how taxing foreign profits makes US labor more expensive.

http://redmondmag.com/blogs/doug-barney/2009/06/microsofts-new-nickname-east-bangalore.aspx
(second paragraph in)



If any more proof is needed that Steve lost his marbles aeons ago, that article is it.

[crickets]

4. "compensating for domestic talent gaps"

The "talent gap" is code for "employees who want to earn a decent living wage, which we aren't willing to pay." Cloaking the lie in jargon doesn't make it any less obvious or offensive.

[Romulox]

5. And me, with a Honda payment to make! nt

[unpossibles]

6. well, on the bright side...

... as offshoring continues, competition in those third world countries will drive up labor costs, while back at home, desperation will create a new low for labor costs as people start doing more for less. In other words, as we become a third world country, maybe those jobs will come back after all.


</sarcasm?>

[Deja Q]

7. While I have seen firsthand a lack of work ethic in fellow students,

there is the "which came first, the offshoring or the apathy" argument -- and more importantly, plenty has been said time and again that all of this IS about exploitation and driving down costs.

Engineers tend to make a great deal of money - anything to cost less, which in turn ramps up the CEO's 600x-the-average-worker-pay to 700x, you know that is what they will do.

In short, the truth is in the middle.



Edited: corrected typo

[liberal N proud]

8. And the economist are puzzled why the jobs are not returning

[DJ13]

9. Eliminate all their tax credits, refuse bailout money, generally tell these co.'s to F off

Place tariffs on the products made after outsourcing.

If these companies are dealt with now, in the midst of the worst economic climate for US people since the depression, they will run roughshod over any attempts to slow them down in the future.

[prolesunited]

10. They need to face economic consequences for doing this

TAX the hell out of them for off-shoring jobs until it is cheaper for them to hire U.S. workers. They will turn us into a third world country if we let them.

We also need to reward companies that keep jobs here by buying U.S.-made goods and investing in U.S. companies as much as possible. We have power in how we spend our money.


So, this is what I have to do to get a job now?!? Move to a foreign country? How un-American.

[Deja Q]

12. Maybe that's why some American workers are not pulling a proper effort...

If I worked for Microsoft right now, I would be rather less than happy or comfy and, indeed, paranoid. Many quit and move to other companies. Others will leech and work more slowly. Others will sabotage as a passive-aggressive form of rebellion.

I know plenty of H1Bs are slop-artists, while there are many who are competent as well - no question. But some currently employed, domestic Microsofties would likely contribute just as much slop out of passive-aggressive dislike.

There are many possibilities to fathom. Enough to make an actual OP and all of this is conjecture anyway. I've too much to do right now...


edited: minor clarification/qualification

[AndyA]

11. Congress is going to have to put a plan in place to make offshoring less attractive

to American companies. Fees, tariffs, higher taxes, whatever. Or, maybe tax breaks for creating jobs here in America, but higher taxes on everything overseas.

We cannot have a good economy here without good paying jobs. It just doesn't work. Congress needs to put a stop to it, and the sooner the better!

[HughBeaumont]

13. I have to ask one question - why does no one EVER CALL THEM ON THE LIES????

"Outsourcing innovation in engineering, research and development, product and software development, and knowledge processes makes companies, whatever their country of origin, more competitive by increasing speed to market and compensating for domestic talent gaps," Heijmen said.

Who are you trying to bullshit? There's no talent gap. The only "gap" is either the one between their ears or that of workers willing to do difficult work for 1/3 of what a convenient store clerk makes. And it's just amazing that they're continually . . . CONTINUALLY given carte blanche to spew this without hem or haw from ANYONE. WHY does no one CALL them on this?

As for how I feel about this whole "FreeTradeFreeMarketOffshoreAllTheJobs" nonsense, read my Journal sometime to get insight.