x
Optical components

Work Poll: Offshoring Gathers Steam

Light Readers say offshoring isn't going away anytime soon, and China and India are viewed as threats in the technology markets.

According to the results of the latest Light Reading Work Poll, 46 percent of the the 35 respondents say that offshoring efforts are accelerating at their companies. 49 percent say that offshoring efforts are staying the same and only 6 percent say offshoring efforts are slowing down.

Meanwhile, most respondents view China and India, where many of these offshored jobs are being sent, as serious, long-term competitive threats.

69 respondents describe China as a "rising power" in the technology market and 62 percent describe India as such. Only 6 percent of repondents say China "isn't really a big influence" and zero respondents describe India as such.

So that leaves the question: Can, and should, governments do something to change the ebb and flow of jobs between nations? 43 percent of respondents say the role of government is to enforce trade violations, while 34 percent say the government should take steps to encourage free trade by loosening restrictions. 60 percent of respondents say the government should create new incentives to keep domestic jobs.

Take the new November work poll here: Taxes. — R. Scott Raynovich, U.S. Editor, Light Reading

DoTheMath 12/5/2012 | 1:07:47 AM
re: Work Poll: Offshoring Gathers Steam Checked out the poll and it said 35 people had taken it. Slow news day, eh?
captain kennedy 12/5/2012 | 1:07:44 AM
re: Work Poll: Offshoring Gathers Steam This is a hilarious attempt by light reading to bolster the nonsense of Kerry with respect to jobs and the economy.
sigint 12/5/2012 | 1:07:41 AM
re: Work Poll: Offshoring Gathers Steam DoTheMath,

I remember an elaborate post from you some moons
back which was a very insightful commentry on immigration and it's consequences. I didn't necessarily agree with all of it, but found the analysis incisive and well thought out.

I'd like to hear your views on outsourcing and likely pros and cons.

thanks,
Sigint
DoTheMath 12/5/2012 | 1:07:40 AM
re: Work Poll: Offshoring Gathers Steam sigint>I remember an elaborate post from you some moons
back which was a very insightful commentry on immigration and it's consequences. I didn't necessarily agree with all of it, but found the analysis incisive and well thought out.

I'd like to hear your views on outsourcing and likely pros and cons.
---------------
Oh boy, that raises the expectation level! Thanks for the kind words anyway.

First let me give a local perspective. I live in silicon valley, the epicenter of the impact of all of these trends. What I find refreshing is that the valley seems to be adjusting quite rapidly. A good number of people, mostly foreign born H1s, left for their native countries. Even an earlier generation of immigrants with green cards or US citizenships have left in sizable numbers. That has dramatically lowered the pressure on the local job market.

On the positive side, Google, Yahoo and Ebay are rapidly becoming the "new" Cisco, Oracle and Sun. They are hiring in fairly large numbers recently, and within 5 years, I won't be surprised if an Ebay overtakes an Oracle, for example. This is classic silicon valley reinvention.

On the start-up side, most start-ups of today seem to keep a small core team in valley, and leverage a larger team in a place like China or India. For many of these new generation companies, this effectively makes the offshoring trend their friend.

A lot of these can be explained (in hindsight) as the twin effects of the Internet. On one side is the offshoring phenomenon, accelerated by the internet. On the other side is the massive productivity gains: for instance, Ebay and Google have much higher revenue and gross margin per employee than Oracle, Sun, or even Cisco.

New start-ups are also achieving high productivity per each valley employee, by leveraging the offshore labor. This high productivity, in turn, is keeping local wages and profits high, fueling another round of investments.

Bottom line: I believe offshoring has run about 50-70% of its course in silicon valley. The way it has adapted (indeed, taken advantage of) this trend is very impressive, and that is due to the flexible mix of large, medium and small companies that make up the thriving ecosystem.

Looking at the silicon valley experience, I believe American economy as a whole will probably adapt well too. My main worry is the huge levels of debt, which makes even minor dislocations toxic for individuals.
OptixCal 12/5/2012 | 1:07:34 AM
re: Work Poll: Offshoring Gathers Steam Maybe your comments below...

"Meanwhile, most respondents view China and India, where many of these offshored jobs are being sent, as serious, long-term competitive threats."

...should read "despondents".

In the meantime, if anyone out there is looking for a good salesguy in the optical components market, let me know!
startup_shutup 12/5/2012 | 1:07:32 AM
re: Work Poll: Offshoring Gathers Steam This huge level of debt and unrealistic home
prices -- what do you think of it. To me it
looks like a policy scam (cheap money) so that
"house envy" could be moneytized and more and
more people could be convinced into lifetime
debt. When bondage becomes voluntary there is
nothing like it in capitalism.....

>> Looking at the silicon valley experience, I believe American economy as a whole will probably adapt well too. My main worry is the huge levels of debt, which makes even minor dislocations toxic for individuals.
DoTheMath 12/5/2012 | 1:07:32 AM
re: Work Poll: Offshoring Gathers Steam startup_shutup wrote>This huge level of debt and unrealistic home
prices -- what do you think of it. To me it
looks like a policy scam (cheap money) so that
"house envy" could be moneytized and more and
more people could be convinced into lifetime
debt. When bondage becomes voluntary there is
nothing like it in capitalism.....
--------------------------------------
I agree. I am partial towards the Austrian School of Economics (read http://www.mises.org). Monetary policy under Greenspan, especially in the last 6-7 years is nothing less a huge disaster, and I would credit it for the serial bubbles and their painful aftermath.

People blame greed, human nature and so on for the tech bubble and now the real estate bubble. Monetary policy and easy credit policies of the Fed are almost never mentioned. To quote Lord Keynes on this:
<quote>
There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
</quote>

I believe a lot of good people have been suckered into debt by the Federal Reserve policy. The resolution of this will be painful - I just hope it is not too painful.
startup_shutup 12/5/2012 | 1:07:24 AM
re: Work Poll: Offshoring Gathers Steam Thanks for your thoughtful reply...I am
interested to see how long federal reserve could
keep interest rate this low. Coupled with
budget deficit and artificially low exchange
rates in China...the whole system is favored
towards money circulation (so that people who
have access to capital can circulate money
and make short term profits). Something like
buying and selling house...using house NOT as a
shelter but as trading instrument (moneytizing
envy, primal nature of humans).

Does this build a strong nation? How truthful
is Freddie Mac and Fannie Mae's advertisement
of fulfiling dreams?

Many papers on housing bubble and financial
derivatives scam could be found in:

http://larouchein2004.net/pdfs...
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE