R&D Starts to Move Offshore - Outsourcing evolves beyond low-wage programming jobs

ComputerWorld ^ | 3/1/2004 | Patrick Thibodeau and Sumner Lemon

[elfman2]

"Indonesia....2.5 and back to 3 minus....no really, Britian is brain drain for 30 years now...so is Germany (11%+ unemployment and last year GDP shrink 1%) "

Indonesia? I’m not familiar with the history of their open market policy, but I suspect it unlikely that they were a high wage protectionist state brought down to 3rd world status from cheaper competition.

Brittan has wages comparable to ours. It suffers from some social problems around immigration but bears no resemblance to the 3rd world. At worst, it lost its superpower status when larger freer nations like ours developed.

I suspect that Germany’s problems (far from 3rd worldliness) correlate much more closely to expanded socialization than to opening of markets.

“Greece, Italy, Spain, Portugal”? Again, stagnant semi-socialist states, not third word carcasses wrecked by rampant capitalism.

[elfman2]

"Why?"

Cultural barriers. Technology’s so ingrained into many dynamic business functions that very close working relationships are imperative. Constantly passing requirements and modifications back and forth across the Internet to foreigners is too bureaucratic for nimble operations.

[elfman2]

"What I am saying is that if some steps are not taken tax cuts, tariffs, somwething. This will cost America big."

Tariffs are taxes, that typically invite retaliation, damage trade and arguably make US businesses less competitive, losing jobs in the long run.

The US just recently was penalized for our export tax credit, and our political opposition (who is behind this anti free market chorus) is attempting to villainize further tax cuts.

[TXBSAFH]

Free trade is hurting the people of this country far more then it helps. We need to do away with it.

[RussianConservative]

Cultural difference? BS...only need to import some US workers as knowledge base till own teams trained up. As for relationships...small liaison teams....modifications/requirements passed by internet between companies and in companies all time anyway...bureaucratic is often what corporation is.

[elfman2]

"Cultural difference? BS...only need to import some US workers as knowledge base till own teams trained up"

I’ve participated in too many system conversion, installation, and development projects to fail to recognize that BS.

[elfman2]

"Free trade is hurting the people of this country far more then it helps. We need to do away with it. "

Yea, freedom’s destructive and un-American. Freedom to trade with who we choose is the worst.

[Centurion2000]

Time to open my restaurant in Kazan.

[moonman]

"R&D is core to most companies. They guard it carefully..."

Apparently not too carefully if they outsouce it

[TXBSAFH]

The freedom to live in a third world economy after most of the decent jobs leave.

[hedgetrimmer]

Freedom to trade with who we choose is the worst

Show us the place in the WTO charter that says one group is free to trade with another group regardless of the country they reside in, regardless of they type of item they want to trade, and without any interference, obstruction, fines or penalties from the WTO.

If trade were "free" and each trader able to make the decision who he wants to trade with and under what terms, why does the WTO even exist?

[oceanview]

They are just realizing this now? You cannot retain R&D for an industry you don't have. Its like saying the US is the leader in R&D for the consumer electronics industry; nonsense, Japan and Asia have the industry, they have the R&D.

Of course people are bailing out of college education in this field. Who wouldn't? Its going to fall further, much further, as techies in industry now (or who have lost their jobs) steer their own college bound children into other fields because they see what is going on. Law school applicants are piling up, the tort laws are going to have to become even more lax to fund the salaries of the millions of new lawyers we are producing.

The free trader freepers continue to put their heads in the sand, as does the Bush economic team. The US leading exports after aircrafts are all farm products (unless you count jobs exports), free trade and globalism have turned our export business into a pre industrial revolution model.

The WTO was formed to shift the economic balance of power away from the US, and its working. And too many conservatives are happy to see it occur if it means they can get a $10 shirt or a $39 DVD player.

[oceanview]

and this also outght to put an end to all the people here saying the the "new businesses" would create new US jobs in the new fields. The VC money is taking these new enterprises offshore from the start, just like we said they were doing.

[RussianConservative]

Make it theme resturant...America IT Experience.

[elfman2]

"Show us the place in the WTO charter that says one group is free to trade with another group regardless… "

Feel free to fall back on the WTO or any other bureaucracy to protect your anti-free trade agenda. I’m generally for freer trade.

[elfman2]

"The freedom to live in a third world economy after most of the decent jobs leave."

The freedom to panic at your shadow.

[RussianConservative]

You know, I think US Cajone food is good investment...very good stuff, especially Kombo...mmmm good.

[TXBSAFH]

Like I said I know too many people that have lost jobs to out sourcing. The fear is real as are the reasons for that fear.

[fso301]

Yes but there's no cause for concern, outsourcing is a sign of a healthy economy. Those displaced by more efficient workers overseas can retrain and look forward to rewarding careers as pool cleaners, lawn care and hospitality workers.

[hedgetrimmer]

Feel free to fall back on the WTO or any other bureaucracy to protect your anti-free trade agenda

The "free trade" that you are for has been entirely engineered by the bureacracy called the WTO.