158,000 IT Jobs Sent Offshore in 2010

I find it interesting that the US Legal profession has blocked outsourcing of attorneys. Falls under the unauthorized practice of law... requires foreign attorneys to work directly for a US attorney.

Consequently large law firms contract offshore attorneys for a few bucks an hour and turn around and bill them out full boat to their clients.

Seems the licensing and regulatory requirements can keep certain skilled jobs here... Military contracting is another area where for security clearance you must be US born.. not naturalized or an immigrant.
 
Like I have said before, the private sector middle class and working class are caught in a huge global cost of living arbitrage that is being done by US corporations.

At the same time that real wages are falling, our financial sector/government pump up the value of things like healthcare, housing, and education. The consequence is that in order to buy such things, the middle and working class are increasingly becoming debt serfs.


The only people making out are rock solid legally protected professions, entrepreneurs, owners, and federal workers.

I for one believe it is both strategically and morally foolish to give up our real productive economy (making stuff, fixing stuff, etc) for the sake of short term arbitrage profits.

The reason it can't be stopped is because for owners of corporations and the financial sector, it is just to lucrative in the short run to let pass. It should not surprise us. Lenin was right when he said that the capitalist will sell the rope he is hung with.
 
in my opinion reason for latest IT and wider job move is not cost of living arbitrage but multiplier. west is indebted. Forget about productivity worker a vs b. Work does not matter. What matters is same 1 dollar paid in salary will have multiplier lots more than 1 in india but probably less than 1 in US. Companies pushing outsurcing own infrastructure, land, officials etc in target country so they will be major beneficiary of that multiplication. 1 job outsurced could mean 0.5M in profits over 10 yrs because of debt taken out, following property rise, inflation, share price rises, things like that. It is a classic bubble.

but at some point when value for money matters again, will revert.

it is too unstable and know too little for me to join the ride up right now. Hovewer I am looking for a good spot to enter long.
 
Quote from newguy05:

~150k tech jobs lost to offshore is nothing, most of you probably are not aware how many IT jobs IN THE USA are lost to indians.

I work in technology in one of the top 5 ibs, it's about 80% indian and 20% others split between white / chinese+koreans etc. nowdays.

In the last few years, there is a drastic increase in middle management (vp/svp) becoming indian. When i first joined 6 years ago, almost all the indians are developers, now the vp/svp level are ~50% indian as well, and of course they mostly hire other indians.

Basically the way it works is the bank ask an indian outsource company such as tcs/wipro for cheap labor, and the consulting firms ship some programmer from india to the usa to fill the position. The bank pays the consulting firm anywhere from 70-100k total, and the consulting firms pay the workers minimum wage (~40k) and pocket the rest.

Then after a few years, the bank realized they cannot get rid of those minimum wage indians as they developed the bank's various critical systems, often times coded in such messy/manually-driven manner it becomes unmaintainable and only the original developer know how to support it. So the bank converts those indians to green card and offer them full employee status along with american salary.

Then those indians are now freely to look for jobs within the US market and compete with regular americans. Imagine this on a nationwide scale and you have a basic picture what the IT industry in the USA looks like right now.

The sad part of all this are a lot of those indians are not that good - skilled programmers. America is an immigration nation, but in the past we only take the best foreigners and make them us citizens, now we take the cheapest...
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so do you fear being laid off? Are you planning on continuing in IT? will this trend get worse or has it levelled off? what do you think the IT field will look like in the US in 10 years?
 
What matters is same 1 dollar paid in salary will have multiplier lots more than 1 in india but probably less than 1 in US. Companies pushing outsurcing own infrastructure, land, officials etc in target country so they will be major beneficiary of that multiplication.
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BINGO! Not only is it a multiplier but Investing in Hard Assets, Ie: Buildings, Land in India, Brazil, etc is yielding better profits than here in America. The upside in both Brazil, India, Vietnam, etc is brighter than in the US....for now. Not sure what 10 years down the road will look like but I doubt India will be in worse shape.

Also, Health Insurance. The US Health Care bill will be another incentive to move off shore.

MUMBAI is being looked at, as the next Financial Capital of the world. This could be huge for IT. Also, it this happens, more attention to going off shore.
 
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