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Offshoring of high-tech jobs
Technology Review | April Issue, 2004 | interview of Deborah Wince-Smith, President, Council on Competitiveness

Posted on 03/19/2004 5:58:27 PM PST by lsilver5

Wince-Smith suggests that the bulk of outsourcing in companies such as IBM is associated with back-room operations (customer support, call centers). The cusp of technological innovation remains in the U.S. She then throws in the caveats: (1)There is cause for some concern in the fields of electrical engineering and software programming; unemployment is in a slump in those fields. (2)The design, engineering, and manufacturing of semiconductors is being done in China, presenting serious competition. In fact, China and India are both emerging as first-tier competitors. (3)Globalization is fueling this; China and India are simply offering talent at a cheap price. (4)Manufacturing of basic computer chips abroad is ok, but we are in trouble if we lose production of advanced manufacturing, for example micro-processors. She suggests that the upside to oursourcing is that China and India will assume the disciplines and business practices of developed economies (for example, China won't want its intellectual property stolen, consumers will be empowered to buy U.S. products and services...) She concludes with the real root of the problem: WE NEED OUR YOUNG PEOPLE TO GO INTO MATH, SCIENCE, ENGINEERING...if we lose our innovative capacity, we are doomed.


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Foreign Affairs; Government; News/Current Events; Your Opinion/Questions
KEYWORDS: employment; hightech; offshoring; offshoringofjobs; society; trade

1 posted on 03/19/2004 5:58:29 PM PST by lsilver5
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To: lsilver5
There is cause for some concern in the fields of electrical engineering and software programming; unemployment is in a slump in those fields.

Being an EE I have to wonder about where the slump is occurring in that field. Yes EEs are heavily involved in the high tech sector but there are many other areas for an EE to prosper Power generation and distribution just one example. Maybe anything out of the realm of clean rooms is just not sexy enough for the newer EEs.

2 posted on 03/19/2004 6:04:54 PM PST by Texasforever (I am all flamed out.)
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To: lsilver5
Yay, outsourcing!
3 posted on 03/19/2004 6:08:59 PM PST by Lunatic Fringe (John F-ing Kerry??? NO... F-ING... WAY!!!)
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To: Lunatic Fringe
Please explain! We are losing our civilization, our innovation, our hardiness...If you mean that oursourcing is a symptom of our flabiness, then I get it.
4 posted on 03/19/2004 6:23:58 PM PST by lsilver5
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To: Lunatic Fringe
WE NEED OUR YOUNG PEOPLE TO GO INTO MATH, SCIENCE, ENGINEERING

Why should they when they have to compete with third world outsourcing.

These people are irrational. First she says "well, it is just at the margins," and then she says "well it is only chip manufacture, sofrware and EE." Outsourcing will destroy are technical lead. What will these people say then.

It is madness, pure madness. They have forgotten how the world works. Too bad the rest of us have to pay the price.

5 posted on 03/19/2004 6:26:15 PM PST by CasearianDaoist
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To: lsilver5
DO you have a link to this?
6 posted on 03/19/2004 6:30:43 PM PST by CasearianDaoist
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To: lsilver5
They're sending these jobs overseas..read the selective service pages..they're going to be sending these people to Iraq when they start the draft April 2005, so they'll have jobs.
7 posted on 03/19/2004 6:31:19 PM PST by Bella
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To: Texasforever
That's weird. My brother is an EE and he chose power as his emphasis thinking he would get a job at a power plant. Got sucked into a clean room instead.
8 posted on 03/19/2004 6:54:33 PM PST by sixmil
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To: sixmil
LOL
9 posted on 03/19/2004 7:05:33 PM PST by Texasforever (I am all flamed out.)
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To: sixmil
Seriously though, the EE is probably the most versatile degree as to a range of functions that can keep you employed.
10 posted on 03/19/2004 7:06:58 PM PST by Texasforever (I am all flamed out.)
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To: lsilver5
"WE NEED OUR YOUNG PEOPLE TO GO INTO MATH, SCIENCE, ENGINEERING...if we lose our innovative capacity, we are doomed."

Yeah, let's keep "socially" passing them from one grade to the next in school. So what if they grow up ignorant - makes 'em better slaves to the handouts from the Democrats.
11 posted on 03/19/2004 7:56:28 PM PST by daybreakcoming
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To: daybreakcoming
Hey...You don't go into science and engineering and math if you're socially promoted! Those who can cut the mustard are recognized the moment sperm and egg unite. Social promotion has nothing to do with the smart kids who are born thinkers, leaders, innovators.
12 posted on 03/19/2004 8:35:46 PM PST by lsilver5
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To: lsilver5
"Social promotion has nothing to do with the smart kids who are born thinkers, leaders, innovators"

Has everything to do with being in classes with those who can't read and the teacher using more time with them while the "smart kids" are sitting there bored out of their skulls and losing their edge. I have seen that firsthand in recent years, have you?
13 posted on 03/20/2004 9:17:02 AM PST by daybreakcoming
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To: A. Pole
ping
14 posted on 03/20/2004 9:23:17 AM PST by null and void (Don't stand idly by and watch your country commit Hairy Kerry!)
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To: null and void
tariff, Tariff, TARIFF!!!
15 posted on 03/20/2004 9:49:13 AM PST by CompProgrammer
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To: CasearianDaoist
WE NEED OUR YOUNG PEOPLE TO GO INTO MATH, SCIENCE, ENGINEERING


Hmm.. speaking as a college Senior (who is kicking himself for spending the last 3 years pursuing a MIS degree), not many people I know are going into CS or Engineering because of worries over the job market.. and people who are currently in those fields are switching to other fields. I myself do not plan on playing the IT game, and will be attending Law School next year.. my girlfriend, formerly a mechanical engineering major, read the writing on the wall as well, and will be starting pharmacy school next fall. What will do, as a country, when our native technical base is gone? We cant all be lawyers, managers, and healthcare workers and still expect to remain the superpower we are today.
16 posted on 03/22/2004 6:58:50 PM PST by somniferum
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To: somniferum
Well what will happen is that we will become a third world nation. But my question to you is why do you think that Law or pharmacy will have any more security than IT? They will outsource law research, the main source of advancement for young lawyers. Pharmacies will be done by quite low level people in the future. Plumbing might be a better choice, but in fact if we do not pull out of this globalization of the economy there will not be any real jobs for anyone.

It is a prescription for disaster.

17 posted on 03/22/2004 7:08:16 PM PST by CasearianDaoist
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To: CasearianDaoist
Hmm.. to answer that..

My hometown is a small, rural MS Delta town. There are only 2 practicing lawyers in town, and one of them is extremely close to retirement. I had sort of planned just to set up my own practice there. Will I get fabulously wealthy and have a glamorous job? Probably not. But will I be able to live quite comfortably and close to my family and the place that I love? Probably so. And if that doesnt work out I suppose I can always go into plumbing, as there is a shortage of those around here as well ;)
18 posted on 03/23/2004 9:46:19 AM PST by somniferum
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To: somniferum
Well good luck.
19 posted on 03/23/2004 1:02:09 PM PST by CasearianDaoist
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To: somniferum
My oldest daughter is a Freshman at MIT majoring in Computer Science. She got the computer bug like her old man did 30+ years ago. Hopefully she'll be able to find a job when she graduates in 3.5 years. But things aren't looking good.

This whole situation of outsourcing jobs to places like India makes me sick. The companies that do this are just trying to make higher profits. They can still be profitable if they keep the jobs here. But their CEO's and other high ranking officers won't be able to make their $10m/annual salaries and stock options.

When the Auto industry and Textile industry started to outsource their products overseas there at least was a solution to the unemployeed workers (at least for some)....RETRAINING....

So what is our Government offering our outsourced engineers now..RETRAINING....My question is....RETRAIN FOR WHAT? These people already have BS and MS degrees in a Math or Science dicipline. Many of these people have IQ's of the top 1% in the world. Where else do you go?

The latest report the government is spewing, is that when US companies outsource these High-tech jobs it creates more jobs here in the US. TRANSLATION - When BurgerKing outsources it's Software Engineering department to India, they'll be able to hire more burger flippers and fry makers in their stores. THIS IS GOOD FOR OUR ECONOMY?????

Our country as grown in prosperity and wealth because of the oppertunities we've been able to strive for. By letting our tech jobs go overseas, where do we go? What do we have to strive for? People like my daughter who have IQ's of 150 or more...What kind of jobs are they suppose to persue if we let our technical jobs go overseas?

In one study it's estimated that within 10 years over 6.6 million high-tech jobs will be lost to foreign markets. Within 20..almost all high-tech jobs will NOT be in the US.

As for EE majors. Switching from a digital engineer designing compter circuits and boards, it's NOT easy (in fact almost impossible) to switch to designing power systems. Maybe if you're a fresh-out. But NOT if you've been working as a CE for the past 20 years. I know MANY EE majors who are out of work or in a completely different field when Digital Equipment Co. downsized them back in the late 80's and early 90's.

I don't have a problem with high-tech jobs being competing on the Global market.....WHEN IT'S A EVEN PLAYING FIELD...I can't compete with a Engineer in India. Their wages won't even pay the taxes on my home. I can't take that kind of a cut in pay.
20 posted on 04/05/2004 12:41:08 PM PDT by MikeInNH
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