High Skill Overseas Workers -- Will they be needed in Future?

E

eBhola

Registered Users (C)
The master plan, it seems, is to move perhaps 40 million high-skill American jobs to other countries.
U.S. executives talk enthusiastically about all the professional jobs they could outsource to lower-wage countries.

Read more on what Princeton economist Alan Blinder predicts -->

http://seattletimes.nwsource.com/html/opinion/2003668844_harrop17.html
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No wonder corporate America has lost its' interest in EB visa numbers, they seem more interested in guys who do the low-tech essential jobs.

Lets debate --
In near future .. will USA need more unskilled workers and less high-tech over seas workers?
 
The writings on the wall for all to read. Cruel economics dictate that no one is indispensible to meet the bottom line. As long as your job can be done for lower wages in a 3rd world country, you cant pretend you have job security. Also, there is no way in hell that legislation will be able to fix it. (Personally, I dont think legislation is required, let the market work and let people adapt to it).
Being in the healthcare field, i know for a fact many radiologist jobs have been outsourced to India. Used to be that radiologist here in US were a spoiled bunch, extravagant pay and would not take night calls. Many hospitals have started sending the night radiology images to India (where its day) and there a radiologists reads the images and sends em back. In the UK, NHS has produces a list of certified hospitals in India and NHS will pay for procedures done there. Its a benifit for patients as they dont have to wait months and a benifit for NHS as the total cost of surgery and patiets trips is less than that in UK. A similar trend is inevitable in US.
On the other hand jobs like landscaping and manual labor cannot be outsourced. Hence the willingness of everyone to give amnesty to illegals here so the job can be done cheaper.

Bottomline, evaluate your job skills and try to make yourself indispensible. Or, start your own business and outsource and hire illegals :D
 
i agree that in the next 10-15 years......close to 60% of IT jobs will be outsourced to india (unless dollar gets devalued badly....)

but i am surprised at the job growth going on......in my small town of alabama.....i have seen atleast a 300% rise in hiring compared to previous years......is it possible that IT was totally shutdown after the BOOM ending in 2000, and they tried to use existing infrastructre till last year...
(2001-2004 almost negligible job growth in IT)
2005 - 20% rise compared to prev year
2006 - 40-60% rise compared to prev year
2007 - booming in my city... 300% rise (but its may not be a general trend)

so is it possible that most shops are having to spend big time on IT now??

due to increased profits.....aging system etc..

at the same time i am surprised that waqes are not increasing.......dont know where they are finding cheap IT guys from....i hope this boom continues for a while, so that i can also make some more hay in this sun shine :)
 
The more they offshore, the more expensive offshoring becomes. Especially if it's not unskilled jobs that can be done for $2/day, for which there is an infinite supply of workers.
 
Jackolantern said:
The more they offshore, the more expensive offshoring becomes. Especially if it's not unskilled jobs that can be done for $2/day, for which there is an infinite supply of workers.
Click to expand...
I dont think offshoring is going to become more expensive.....as offshoring increases indian/overseas companies will have to compete for projects...and they will learn to manage with more tighter budgets on their side....

right now offshoring is not a common thing......its being done by big companies....who are vying only for the top brain paying top salary.....and outbidding each other in paying wages.....

once its becomes competitive they will learn to retain and train not so smart people cutting cost..

In other words....once this industry matures.....cost will either stagnate or it will go down.....because the profit margins are still very high...

for example:

in india for a avg programmer the billing rate is around $7 (rs. 300)/hour

but indian companies bill us companies close to $35/hour (just an guess, correct me if i am wrong).

which is still too high...
 
techy2468 said:
I dont think offshoring is going to become more expensive.....as offshoring increases indian/overseas companies will have to compete for projects...and they will learn to manage with more tighter budgets on their side....
Click to expand...
Why? As offshoring increases, there will be more work available for the companies to do, and less of a need to compete as there will be work to go around for everybody. Workers will also have more choices to move around, so they'll be be able to demand higher wages. Offshoring IT work is already at least twice as expensive as it used to be in 2000.

for example:

in india for a avg programmer the billing rate is around $7 (rs. 300)/hour

but indian companies bill us companies close to $35/hour (just an guess, correct me if i am wrong).

which is still too high...
Click to expand...
$20-$40/hr is a common rate. There is a big difference between a programmer's salary and the billing rate, but you have to consider the other costs involved, many of which are just as expensive or even more expensive than the US. The cost of office real estate is more expensive in Bangalore than in Boston, for example. When you pay $10K/year for office space on top of an $80K salary in the US, it doesn't seem like a big deal. But it is comparatively huge when you have to pay $12K for a programmer's office space in India on top of his/her $10K salary.

Then of course the salaries of non-billable management have to be incorporated into the billing rate. As the offshoring providers grow, they have more and more layers of non-billable management and their rising billing rates reflect that.

I expect the offshoring to be more of a barrier that stops US wages from rising, than for it to cause massive job losses in IT. Above a certain US wage, it becomes more profitable to offshore than to pay a big salary to somebody local when there is a skills shortage. Below a certain US wage, the cost savings are often too little to bother with the risks and hassles of offshoring.
 
banta4gc said:
Jackolantern....Ur PD is current, U may want to change the message in your signature...NOW!
Click to expand...
ya u can change it to ----

Here lies Jackolantern, who passed away from this world in the year 2072. Awarded a green card posthumously in 2085, one year after his *Name Check/Security Check got cleared*
 
banta4gc said:
Jackolantern....Ur PD is current, U may want to change the message in your signature...NOW!
Click to expand...
It's not current until May, and they probably won't approve it it in May itself and it could retrogress afterwards. So I'll leave it unchanged for now until I see some progress, like getting the 2nd fingerprinting and finding out whether the name check has been cleared.
 
My 2 cents and I just think from my pigeon hole so it is likely full of cracks.

News is not surprising. The numbers are definitely bigger than earlier pointers.

America is a land of survival of fittest. Those who can not run will be left on the pavement. Those who can will reap the benefit. For several decades some of these rules were not applied due to protection offered by immigration laws to certain sectors of work force.

Manufacturing sector took the hit when work shifted to Japan/Taiwan/Korea/China but white collar class was safe.

In the last 10-15 years a shift was happening. Internet came and changed the rules of game. This is causing the job shifts which were unthinkable a few years back.

People who make the decision of shift are not going to look at anything other than cost. And for several coming years cost will be lesser at India/China.

I have several friends who manage people both in Info Tech and in Financial fields. They have complaints that the quality of work done is very bad. One of them points repeatedly that if a worker here had made the same mistakes he would have been fired three times over.

My argument to this was "it does not matter". What matters is money saved. This is what bottom line indicates and this what CEO wants.

Any jobs going way would not be coming back. The skill to do here in America won't be available when the need arises. I had a friend who was a very good programmer in chip drivers. After getting laid off he just gave up and started an exotic hotel. He is not going to write code again.

How to protect your self ? You can do very little. We are a small cog of this huge system. If you are close to customer interface and customer is in U.S then you can hold on longer. If you can move to Defence industry, that also provides protection.

Beyond this there is little to see. At this stage I can not become a NURSE to wipe of ageing America's bottom. So take it as it comes and enjoy the present till future submerges us.




eBhola said:
The master plan, it seems, is to move perhaps 40 million high-skill American jobs to other countries.
U.S. executives talk enthusiastically about all the professional jobs they could outsource to lower-wage countries.

Read more on what Princeton economist Alan Blinder predicts -->

http://seattletimes.nwsource.com/html/opinion/2003668844_harrop17.html
-----------------------------------------------------------------------

No wonder corporate America has lost its' interest in EB visa numbers, they seem more interested in guys who do the low-tech essential jobs.

Lets debate --
In near future .. will USA need more unskilled workers and less high-tech over seas workers?
Click to expand...
 
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