Frequent commenter/long-time reader Pelsmin is visiting India, and shared these thoughts. More below the fold...
THE PARADOX OF INDIA
This week I visited Bangalore to tour facilities of my new employer, an outsourcing engineering firm with most of our employees based in India. Companies use us to develop technology better, cheaper and faster.
When President Obama rails against un-patriotic American companies “outsourcing” their work, he’s referring to our customers. And incidentally, he means “offshoring.” Outsourcing is the completely un-objectionable process of allowing another firm, possibly based across the street, to handle non-core business activities. Peter Drucker championed the concept half a century ago and it has led to vast improvements in competitiveness and productivity, and countless American job gains.
Offshoring can be done without outsourcing, by changing the location of a company’s own employees to India, and outsourcing can be done without offshoring, by transferring work from your own employees to more productive labor situated in the US. They may originate from another country. Think H1 visa.
(moremoremore!)
THE PARADOX OF INDIA
This week I visited Bangalore to tour facilities of my new employer, an outsourcing engineering firm with most of our employees based in India. Companies use us to develop technology better, cheaper and faster.
When President Obama rails against un-patriotic American companies “outsourcing” their work, he’s referring to our customers. And incidentally, he means “offshoring.” Outsourcing is the completely un-objectionable process of allowing another firm, possibly based across the street, to handle non-core business activities. Peter Drucker championed the concept half a century ago and it has led to vast improvements in competitiveness and productivity, and countless American job gains.
Offshoring can be done without outsourcing, by changing the location of a company’s own employees to India, and outsourcing can be done without offshoring, by transferring work from your own employees to more productive labor situated in the US. They may originate from another country. Think H1 visa.
(moremoremore!)