Silicon Valley Companies Looking For Cheap Labor Overseas

from the a-problem-or-an-opportunity? dept

For years, there has been a very vocal group of people in the US trying to get the government to cut back on the number of visas given out to foreigners, saying that we can fill those jobs with American citizens. Now, some are realizing that strategy may have additional unintended consequences that have made things even worse for themselves. Instead of bringing in new workers, technology companies are now moving entire jobs overseas where workers are much less expensive. For years, this trend was slowed down by the fact that many overseas workers weren’t at the same skill level as their counterparts in the US – but that is quickly changing. Just this weekend I had a conversation with some foreign-born engineers who fear that they need to start looking for other careers as plenty of jobs seem to be moving back to where they originally came from. Some companies are apparently encouraging foreign-born workers to take their jobs back to their home countries – where they will pay them a much higher than standard “local” rate – though, still well below what they would make in the US. While some are predicting that this will be the end of software development in the US, others aren’t so sure. There is still something to having a team of people who can collaborate in person. I know some engineers who work with programmers in India say that development slows down because they can only handle one issue a day, before it gets passed back to the other side of the world to be dealt with the next day. In the end, people can complain about these things all they want – it doesn’t change the economic reality they’re facing. Companies need to realize that there are benefits and tradeoffs in employing workers overseas – and some will continue to go in that direction, while others will find value in keeping employees here.

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Comments on “Silicon Valley Companies Looking For Cheap Labor Overseas”

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Anonymous Coward says:

No Subject Given

My employer has had a development office in India for a while. We found a hurdle bigger than the time difference, and bigger than this one-issue-a-day problem you’re mentioning.
The problem we found was a difference in office behaviour and working style: we found that Indians have some reluctance to admit they don’t know something, and don’t seem to like to ask for assistance. If they have a problem, we know because they just go quiet. In the middle of an e-mail conversation, their side will go dead, like someone’s walked away from a phone or something. We have to watch for it constantly, and make immediate inquiries if we see it. Sometimes, we’ve even tried to anticipate the problem and casually mention the solution, so they may get going again without losing face by asking for help.
It’s a big difference, and after two years we still haven’t realized ANYTHING CLOSE to the apparent cost savings whispered to us so long ago. I think it’s snake oil, myself, because we spend so long transitioning stuff over and babysitting the guys over there that it appears pointless, some days.
I think we should set up offices in Canada. There are so many geeks that have had to go home, now, and they’re all looking for work. Same time zones, same birth-language (if you go west far enough), and their dollar’s worth some kinda 60c .
That’s some savings, right off the bat. Think of the ski vacations masked as on-site strategy meetings! And, not only do they have real transit up there where it’s still a basic service, but in Alberta they all talk like texans, so Compaq people could go up there and not notice an accent!
Truly, Canada is made to be exploited.

Anonymous Coward says:

No Subject Given

The free market theory assumes that other nations have the same commitment to dynamism as we do. Since they don’t, problems will surface in one way or other down the road. Non-American workers tend to get upset when asked to change roles. The concept of “wearing many hats” is often considered bizarre or insulting.

The biotech industry has heard the giant sucking sound from China also, but it turns out that Chinese farmers are reluctant to buy GM seeds from their own companies. Health care professions have heard the giant sucking sound from Filipino workers, but the Filipino-born workers tend to lack computer or leadership skills.

We can do ourselves the greatest favor by emphasizing leadership skills, to make use of the skilled but inflexible foreign work force (assuming we will always want to use them).

Anonymous Coward says:

No Subject Given

You’d tink the government would want jobs to stay in the US. Eventually, all jobs will move overseas to save money so corporations can make even more money. The problem is, once all jobs have moved overseas, there’ll be no middle class to buy any of the goods or services produced by the corporations. Big corporations will fail, the upper class will disappear, the US will no longer be able to support it’s superpower status as there will be no skilled labor and the US will Fall.

Sure you can pay Overseas workers their cheap wages, say $5.00 an hour for a job a US worker would make $60.00 and hour for, but instead of big companies being able to just pay dollar for dollar, have the fed govt. tax the work heavily as to make the actual amount payed, including taxes, greater than the american worker’s wage? Either companies would have to move overseas and try to sell goods to and live with those in a third world country or stay in the US and pay the workers fair wages!


BPO(Data entries)

I would like to try for BPO from India.I am atpresnt having an internet cafe plus my own consultany firm.Basically I am an engineer and I’ve put up 14 yrs of service in Calicut India.I am giving below my firm’s details..
We are the leading well-equipped Internet Service Provider in Calicut functioning for the last 4years.We are located in the heart of the City accessible to by roads and air.

The Royal Surfer?s Cyber World , that is our organization works on the first floor of newly built Das Building on the busy Link Road close to the Railway Station and opposite to the city?s most popular Cinema Apsara.

Our working area measures 3000 sq.ft ,equipped with 20 Computers,13scanners and printers .
Presently we have some well trained 10- strong staff with scope for expansion.We work for about 14 hours throughout a day.

We are ready to provide the services in :
a) Data conversion of Books.
b) Medical Billing.
c) Insurance claims processing
d) Vouchers processing
e) E-accounting.

We assure you of the best quality service with speed for right rates .

Thanks & Regards.
Rani Remesh

raul miramontes says:

I think its our goverment to blame. How can the U.S allow this to happen for so long. Here we are in this great country and our unemployment rate is at an all time high. It just sucks that everything you wear, your furnisher at home, your electronics , etc is made oversees. This will eventually lead us to be a third world country wether you like or not. Just being realistic my friends. Just pick up a newspaper and see for your self how disfunctional our goverment is…..

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