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Monday, December 22, 2008

Outsourcing Insanity

Last weekend I attended a kids’ hockey game and talked to one of the mothers who’d just been laid off. She was skilled at computer-based industrial drafting. About a year ago she and her fellow workers were asked to train an Indian (from India) crew. The management more than once said not to worry. “This will not affect your jobs.” The company only intended to outsource a few projects.

You know the rest of the story already. Sure enough, the entire local drafting crew was laid off. All of the work went to India.

My thinking is, what an extreme way to save a buck or two. Management lied to its loyal workers who kept them in business this long. What is the incentive and what does the company hope to gain?

With all due respect to Indians in India, I can give plenty of anecdotal evidence for businesses to be wary. As I look back over the last several years, every time I have had to use a Customer Service based in India, I’ve had to ultimately drop the product or service I was using. It was just too darned frustrating to communicate. I have experienced the full spectrum. The reps who could not understand or speak English very well. And those reps who could speak English flawlessly but understood nothing. Sure, this is anecdotal. Not politically correct either. But the bad experiences are emblazoned in my memory so I can’t help it.

My guess is – and it is an educated guess – that whatever savings the company hoped to get will be counterbalanced by wasted time and miscommunication dealing with the India drafters and managers. The alleged savings will show up in the books. But not the wasted time and frustration.

Someone has to realize what is happening and stop the insanity of trading away good American jobs to India or elsewhere. Now it is the skilled stuff, not just entry level.

This type of thing does affect you and me. The folks that are laid off go to the state for unemployment. More strain on businesses and all of us, while another nation benefits from our foolishness.

If we have to make adjustments to the tax laws, and remove incentives for outsourcing jobs, lets do it now. I’m not talking cumbersome regulations. We’ve got enough of those. Just make common sense adjustments so that outsourcing in this way does not seem so attractive.


Blogger G-Man said...

Not to worry, the mother and her coworkers will have plenty of jobs to pick from next year. And the best part is that the jobs will be good for the environment – even carrying the Sierra Club Green Seal Of Approval.

Mr. PEBO (President-elect Barack Obama) has a plan to create millions of jobs building roads, bike trails, choo-choo paths, wind farms, and sun fields. Surely, these are better jobs than they previously had.

Of course, I'm being sarcastic. PEBO and his allies in Congress aren't worried about keeping America

As one in the computer field of a large cooperation, I know all too well that big business outsources to India for one reason. It saves the company money in the long run. Even if they pay the foreign workers the same stated salary, they save money. No payroll tax and no health care premiums. Remember, many large companies kick in $12,000 per employee toward health care premiums alone.

PEBO wants to punish these companies by "taking their profits" and taxing them more. But, this only encourages more outsourcing – and leaves more Americans out of work and looking to Big Government for a bailout. I fear that this is PEBO's goal. Not to save American jobs, but to create more desperation and more people willing to look to government for help. 40% of Americans are already dependent on government for their paycheck (or hand out). Once this reaches 51%, the future of Democrat power is assured – as will be the demise of our democratic-republic.

I don't mean to be crass, but anybody who lost a job to outsourcing and voted for PEBO and/or a Democrat for Congress, has no right to be upset. This is what they voted for. Besides, there will be plenty jobs down the road – digging the ditches and building it. I understand government will even provide the shovels. So, why the complaining?

[i]Lest anyone forget, the tanking of our economy is a byproduct of two years with Democrats running Congress. [/i]

12/22/2008 6:46 PM  

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