More Hyperbole from Bush... and encouragement from The Register
Yet another item in the American media about how Bush is going to stop
outsourcing. Atleast, that is what the title and the first paragraph says.
Then, possibly, the spokesman notices that there are some Filipino guys
sitting in the audience and goes on to retract his statements : “I don’t
expect the sudden pullout by [US] companies from the Philippines. Outsourcing is obviously a growing trend in this country. American companies are trying to lower cost and they focus on the bottomline,” Chandler said. Rrright...
Anyway, it would be interesting to see where this goes. I cannot imagine a tax break that would substitute for getting a workforce at 1/4th the cost. And as I mentioned in a previous article, if you really make outsourcing unprofitable in the US, a bunch of European and Japanese companies are going to walk all over the US. No US company will let that happen if it can help it - so they will be putting pressure on Bush to make some tiny face-saving laws against outsourcing that dont matter at all.
It is a little weird that most of the Pro-Outsourcing reports, like this one, are coming in from Europe, while the Anti- rhetoric is being spouted in the US. I'd welcome any thoughts on why the social climate of the EU is so in favour (when the percentage of the outsourcing is much less there). The occasional protests by displaced workers are all but drowned out by the "every Euro outsourced gains 1.x Euros to the EU" type stories. Strange.
outsourcing. Atleast, that is what the title and the first paragraph says.
Then, possibly, the spokesman notices that there are some Filipino guys
sitting in the audience and goes on to retract his statements : “I don’t
expect the sudden pullout by [US] companies from the Philippines. Outsourcing is obviously a growing trend in this country. American companies are trying to lower cost and they focus on the bottomline,” Chandler said. Rrright...
Anyway, it would be interesting to see where this goes. I cannot imagine a tax break that would substitute for getting a workforce at 1/4th the cost. And as I mentioned in a previous article, if you really make outsourcing unprofitable in the US, a bunch of European and Japanese companies are going to walk all over the US. No US company will let that happen if it can help it - so they will be putting pressure on Bush to make some tiny face-saving laws against outsourcing that dont matter at all.
It is a little weird that most of the Pro-Outsourcing reports, like this one, are coming in from Europe, while the Anti- rhetoric is being spouted in the US. I'd welcome any thoughts on why the social climate of the EU is so in favour (when the percentage of the outsourcing is much less there). The occasional protests by displaced workers are all but drowned out by the "every Euro outsourced gains 1.x Euros to the EU" type stories. Strange.
posted by Sudarshan | 6:02 AM
1 Comments:
Note that the survey only covers West Europe.
Apart from India & China, there are lots of other outsourcee fishes in the pond.
Many of the East-European countries are developing nations like India and also have fairly good amount IT workforce. The West EU outsources work to East EU. Since this makes the Euro stronger, I guess the Europeans only gain...unlike US, which has seen a decline in almost everything (IT work, dollar, economy).
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