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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: JBTFD who wrote (31188)	11/8/2003 5:22:04 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 89467

(free trade and jobs) It isn't all cost. I work with this issue at the semi equip companies. I used to think it was about cost. Last year, we had a ratio of 9 to 1 offshore to US workers. This objective (then) was a cost related one, put forth by Gartner during a recession. The CFOs bought into it heavily and there were fairly massive layoffs. Then, as the model started to take shape, it became very clear that 1. Offshore tasks need clearly elucidated design documents up front- most companies don't have this and to produce it, means hiring super expensive people here 2. Offshore infrastructure costs are high and add to overhead 3. The distance factor adds 30-50% in time to every project 4. Staff over there just isn't as good as was promised (you used to hear soundbytes about how India had a "superior" workforce, never is that said now) 5. There is no job loyalty to the "sweatshop" work atmosphere at the consulting shops in India and China As projects starting coming down, the offshore tasks were almost always 30-50% over time and budget. Right now virtually every company I work with is doing a sort of "regroup" about whether this offshore model is worth the effort. I'm not saying they will drop it, but some serious decisions will be made. On the other hand there is a larger issue. That is the desire that these companies have to gain presence in the only markets where they perceive any growth. That would be China and India. They see no growth here in the US. Funny that this has never been an issue before for semi equips who have traditionally sold most of their products overseas to China or Asia. But now they are articulating that they don't care about the US mkt anymore, and they never did that before. Applied Materials even has a "new college graduate" program for Chinese universities. I'm not even sure if they have a US NCG program. Maybe, but if so it sure isn't getting any press.