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more outsourcing bad news?

 
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http://news.zdnet.co.uk/business/employment/0,39020648,39118809,00.htm
apols if this has already been discussed.
 
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The article doesn't say anything new, but I do think it will be interesting to see what changes occur as a result of these job shifts. If creating public awareness will stimulate anything, I think it will be price competition.
Suggesting the American public will pay "US prices" while these companies bear radically lower costs is simplistic thinking. The market finds ways to adapt, and not the least of those ways is uncovering those savings and applying pressure on these companies to pass them on to consumers.
But these kinds of movements aren't really uncommon at all. In the 70's and 80's we had an egregious amount of hack-and-slash job cutting in the manufacturing sector. Most of that work "went away" for similar reasons -- overseas competition and "outsourcing" -- and yet the economy found a way to recover and flourish. The ones who spend the least amount of time "recovering" are simply those most able to adapt. The ones who don't have to recover at all, of course, get to stay put, and that's not a small number either.
In any event, most computer tech-support services I ever used have sucked -- Dell was a noticeable exception -- so if companies are finding a way to produce a lousy product for less, that can only be good.
 
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Seems to have been a lot of this going on in the Massachusetts area, not sure about elsewhere in the country. I understand why companies want to cut costs, and there are definitely a lot of savvy, educated programmers in places like India.
The thing I find sad about it is that I don't think project costs aren't as determined by the salaries in the US as they are by weak management skills related to software engineering projects. In that respect it makes perfect sense for companies to outsource abroad. Even if the foreign managers are as bad as the US ones, the companies at least pay less for the running into the same problems.
 
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