IT Outsourcing Continues To Show What’s Wrong

As long as the American economy is supported by the economies of other nations, there is no way the United States will fully recover. More and more jobs go away in the United States, only to pop up in India, China, or some other place where wages are low and English is a very foreign language.

Back in the early ‘90s, when that politician masquerading as a pissed-off hardware salesman, Ross Perot, talked about the loss of American jobs, and the giant sucking sound, it was in vogue to make fun of him, his mannerisms, and his speeches. As anyone with 4 out of 5 senses can plainly detect, the man was right. Oh, he made more of a big deal about Mexico than perhaps he should have, but then the man was headquartered in Texas, so he gets a pass on that part of it.

A story that comes from Maximum PC shows that today, the sucking sound is still there, not as loud, but far from faint –

Surprise, surprise, outsourced IT jobs continue to thrive in India, while it’s slim pickings for IT admins looking for employment in the U.S.

Wipro, Infosys Technologies, and Tata Consultancy, which are three of India’s largest IT services firms, took on a combined 16,700 new workers in the last quarter alone, bringing the total workforce for all three companies to 359,000 strong.

Growth in the U.S. hasn’t been quite as robust. According to the TechServe Alliance, an industry group which tracks U.S. monthly labor IT-related occupational data, the U.S. IT workforce dropped from 4 million in November 2008 to 3.81 million in September 2009, with about 11,000 jobs added between then and the end of last month.

From a dollars standpoint, the total market value of outsourcing contracts reached $24.7 billion for the most recent quarter, the best it’s been in six quarters, and representing a sequential increase of 47 percent.

I don’t offer any easy fixes. There are none. But what is certain is that change is needed, and during the span of my life this country has gone from the number one manufacturer of goods in the world to who knows how far down the list.

Whether you are Liberal or Conservative, it should be clear that the country is not on the right track, and the rantings of either end of the political spectrum should not be totally heeded, but used as a way to steer the course of the nation.

While some rant, others are trying to get things working, and they should be applauded and followed. Rather than giving people more to complain about, the Congress should begin a program of economic recovery by giving tax credits to businesses that hire people, instead of tax cuts for the wealthy. Special credits should be given to businesses that have end-to-end operations in the United States. With that as the carrot, the stick should be that penalties are given for every job by U.S. companies that outsource to anywhere.



It’s time for a new party – the party of people with IQ levels over 100, and a strict rule against cretins.