Comments on: Comments on cellphones and stereotypes http://www.triscribe.com/2004/02/13/comments-on-cellphones-and-stereotypes/ We're still here! Tue, 07 Feb 2012 05:13:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: YellowCartman http://www.triscribe.com/2004/02/13/comments-on-cellphones-and-stereotypes/comment-page-1/#comment-209 YellowCartman Sat, 14 Feb 2004 02:57:45 +0000 /?p=179#comment-209 What you're describing is one of the results of exporting wealth. Whereas the previously poor areas become wealthy and live like it, the cost of labor also increases. So what happens is there will come a time where the cost of doing outsourcing business doesn't make economic viable sense. When that point happens, it's unclear because the US companies are like a bunch of lemmings racing to set up overseas shops. The upheaval is tremendous and without serious analysis of economic sense. =YC What you’re describing is one of the results of exporting wealth. Whereas the previously poor areas become wealthy and live like it, the cost of labor also increases. So what happens is there will come a time where the cost of doing outsourcing business doesn’t make economic viable sense. When that point happens, it’s unclear because the US companies are like a bunch of lemmings racing to set up overseas shops. The upheaval is tremendous and without serious analysis of economic sense.

=YC

]]> By: ssw15 http://www.triscribe.com/2004/02/13/comments-on-cellphones-and-stereotypes/comment-page-1/#comment-208 ssw15 Sat, 14 Feb 2004 02:44:45 +0000 /?p=179#comment-208 Speaking of outsourcing and the whole cheap-but-educated labor, last night's "Nightline" had a fascinating look at outsourcing/global employment in India - where the workforce appears educated and cheap, and poised to be ready for middle class life. They like their McDonald's, Cokes, and so on - American brands - but with an Indian style. And, of course, there's Bollywood and the music and the flavors and so on. Combining efficiency, discipline, and creativity? Hmm - I got the feeling from watching "Nightline" last night that maybe India might be on track for having combinations. There's hope that India can rise from the poverty, the old nationalism and breaking barriers, the old "This isn't my parents' India = it's the 21st century India." For all our talk of praising or trashing "diversity," is the U.S. missing out on having synergy or energy in its capitalism, because we could be raising barriers again? Hmm. (I better stop before I start sounding like Marge Simpson). Speaking of outsourcing and the whole cheap-but-educated labor, last night’s “Nightline” had a fascinating look at outsourcing/global employment in India – where the workforce appears educated and cheap, and poised to be ready for middle class life. They like their McDonald’s, Cokes, and so on – American brands – but with an Indian style. And, of course, there’s Bollywood and the music and the flavors and so on. Combining efficiency, discipline, and creativity? Hmm – I got the feeling from watching “Nightline” last night that maybe India might be on track for having combinations. There’s hope that India can rise from the poverty, the old nationalism and breaking barriers, the old “This isn’t my parents’ India = it’s the 21st century India.” For all our talk of praising or trashing “diversity,” is the U.S. missing out on having synergy or energy in its capitalism, because we could be raising barriers again? Hmm. (I better stop before I start sounding like Marge Simpson).

]]> By: YellowCartman http://www.triscribe.com/2004/02/13/comments-on-cellphones-and-stereotypes/comment-page-1/#comment-207 YellowCartman Sat, 14 Feb 2004 02:38:16 +0000 /?p=179#comment-207 Kristof is getting a little idiotic: He writes in his blog <a href="http://forums.nytimes.com/top/opinion/readersopinions/forums/editorialsoped/opedcolumnists/kristofresponds/index.html?offset=277&f.f3beae7/277" rel="nofollow">Kristof Responds</a> : " The Japanese bitterly resisted this process of “creative destruction” of jobs,” trying to hold on to old ways of life and old economic sectors. The upshot was that Japan kept rice farmers and futon makers in their businesses, but at the price of an economic slowdown and a lower standard of living. And ultimately, those rice farmers still had to give up, and so did the futon makers, but they had wasted a couple of decades trying to stick it out when the economics just didn’t make sense. It was just cheaper to grow rice in California or make futons in California, just as it is cheaper today for American companies to write computer code in India. Fighting the economics of that was a losing battle, and it hurt everybody involved." 1. Exaggeration of the difference between the American hi-tech industry and worksrs vis-a-vis non-US hi-tech industry and its workers. 2. Hi-tech is not "old" vs "new" sectors. It's still very relevant and "today" as it were. 3. The economics that makes it cheaper to ship work to India or China is not necessarily true. In fact, there are studies and plus workers like myself who have dealt with these so-called "better workers" that the cost savings is not necessarily great. In fact in many cases, it's even more. The cost that is not captured is the re-work required when quality specifications are not met. This is extremely expensive and not easily handled in a dispersed environment. There are some business functions where co-location or resources is economically smarter. Also, the added management layers to manage across geographic boundaries is not so easy to do, inspite of Internet technologies and tools. We have an abundance of tools to make our jobs and lives easier but we hardly use any of them to its fullest potential, leading to a lot of waste. It is not easily a matter of education and outsourcing. It's all cost and it's the American capitalist system that is driving companies to focus so much on cost reduction that they fail to analyze all the other factors involved with uprooting whole operations and business units. In the end, some things aren't worth the cost savings involved due to the (a) poor quality, (b) re-work, (c) increased management costs - organizational bloat, (d) domestic backlash. The net result is higher cost. The US is importing poverty and exporting wealth at the moment. Labor costs are something that is out of the hands of the worker and something the government should do more for. The US worker can be extremely educated but the cost to achieve that level requires higher salaries (labor costs) so it's a catch-22. Countries like India have federal level agencies who give rebates and other tax incentives to help promote and foster industrial growth and businesses. The US by letting the market take its course is really shooting itself in the foot, giving away all its long term competitive advantage for short term gains. =YC Kristof is getting a little idiotic:

He writes in his blog Kristof Responds : ” The Japanese bitterly resisted this process of “creative destruction” of jobs,” trying to hold on to old ways of life and old economic sectors. The upshot was that Japan kept rice farmers and futon makers in their businesses, but at the price of an economic slowdown and a lower standard of living. And ultimately, those rice farmers still had to give up, and so did the futon makers, but they had wasted a couple of decades trying to stick it out when the economics just didn’t make sense. It was just cheaper to grow rice in California or make futons in California, just as it is cheaper today for American companies to write computer code in India. Fighting the economics of that was a losing battle, and it hurt everybody involved.”

1. Exaggeration of the difference between the American hi-tech industry and worksrs vis-a-vis non-US hi-tech industry and its workers.

2. Hi-tech is not “old” vs “new” sectors. It’s still very relevant and “today” as it were.

3. The economics that makes it cheaper to ship work to India or China is not necessarily true. In fact, there are studies and plus workers like myself who have dealt with these so-called “better workers” that the cost savings is not necessarily great. In fact in many cases, it’s even more. The cost that is not captured is the re-work required when quality specifications are not met. This is extremely expensive and not easily handled in a dispersed environment. There are some business functions where co-location or resources is economically smarter. Also, the added management layers to manage across geographic boundaries is not so easy to do, inspite of Internet technologies and tools. We have an abundance of tools to make our jobs and lives easier but we hardly use any of them to its fullest potential, leading to a lot of waste.

It is not easily a matter of education and outsourcing. It’s all cost and it’s the American capitalist system that is driving companies to focus so much on cost reduction that they fail to analyze all the other factors involved with uprooting whole operations and business units. In the end, some things aren’t worth the cost savings involved due to the (a) poor quality, (b) re-work, (c) increased management costs – organizational bloat, (d) domestic backlash. The net result is higher cost.

The US is importing poverty and exporting wealth at the moment. Labor costs are something that is out of the hands of the worker and something the government should do more for. The US worker can be extremely educated but the cost to achieve that level requires higher salaries (labor costs) so it’s a catch-22. Countries like India have federal level agencies who give rebates and other tax incentives to help promote and foster industrial growth and businesses. The US by letting the market take its course is really shooting itself in the foot, giving away all its long term competitive advantage for short term gains.

=YC

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