The trend is not good if you are a tech worker at IBM (NYSE: IBM) in the US. By the end of this year, Big Blue will have 100,000 jobs in India, Russia, Brazil, and China. That number was closer to 85,000 just last year.
According to The Wall Street Journal, "this year, IBM's employment in India is likely to reach 73,000 people, up from 52,000 last year."
This is a cruel irony to the news. The US is still the world's center for hardware and software creation. Most innovations in these field still originate here. The world's largest chip-maker, Intel (NASDAQ: INTC), is an American company. The world largest software company ,Microsoft (NASDAQ: MSFT), was started in the US, as was the world's premier internet company, Google (NASDAQ: GOOG).
Yet, when it comes to economic benefits, many of the tech giants are moving jobs to India and China to get cheaper labor. While this may help their earnings, it hurts high-end employment in the US.
Created in America. Maintained and supported somewhere else. A bit of a tragedy.
Douglas A. McIntyre is an editor at 247wallst.com.











Reader Comments (Page 1 of 1)
12-17-2007 @ 11:18AM
L. Bairdd said...
Boycott IBM and all outsourcers.
12-18-2007 @ 10:44AM
Chirag said...
http://news.google.com/news/url?sa=t&ct=us/0-0&fp=476767743cfbe89b&ei=cz5nR4XnKJTcywSp3uA-&url=http%3A//www.computerworld.com.au/index.php/id%3B1242931602&cid=0&sig2=frlnz2hc4S0cySTdZOGiaw
12-17-2007 @ 2:14PM
terry finn said...
Education - Education - Education!
12-17-2007 @ 5:09PM
Prashant said...
Well, you fail to mention that IBM, Microsoft, Google, etc, while being built and established in America, drew upon vast numbers of talented and skilled engineers from all over the world to work and innovate for them. Today's immigration environment makes it harder for legal immigrants and temporary workers to contribute to America, while illegal aliens receive widespread sympathy and support. Complete rubbish!
Besides, the real tragedy here is that corporate America and the shareholders WANT these companies to maximize profits. In today's capitalistic America, is it not then unfair to expect these companies to consider anything else? It's not as if these jobs are going to unskilled and unqualified Chinese or Indians. These people are just as good as the American Engineer, and if companies can employ them at a cheaper price, then who is to blame?
12-17-2007 @ 10:35PM
Chirag said...
http://news.google.com/news/url?sa=t&ct=us/0-0&fp=476767743cfbe89b&ei=cz5nR4XnKJTcywSp3uA-&url=http%3A//www.computerworld.com.au/index.php/id%3B1242931602&cid=0&sig2=frlnz2hc4S0cySTdZOGiaw
You love it when US companies rake in billions of $ from around the world. Coca Cola and a million other companies have been in India for a while now and we welcome them even though they are an apparent threat to India's local businesses. Despite being the world leader, the US is more afraid of globalization than "poor third worlders".
IT in India is still a tiny fraction of what it is in US and still Americans like you are so paranoid about sharing your vast wealth with anybody else!
1-06-2008 @ 8:30PM
Bhala Ghatale said...
Actually, the brain behind american internet is not american, it is mostly foreigners. Most of the research, development & inventions in also done by foreigner. Americans are lazy but using their remote control & wathching television all the time. Indian are hardworking & their brain is also behind most of the american development. Even today america is indian backyard. actually america cannot survive without india brainies.
12-18-2007 @ 12:22PM
Richard said...
Pranshant said, It's not as if these jobs are going to unskilled and unqualified Chinese or Indians. These people are just as good as the American Engineer, and if companies can employ them at a cheaper price, then who is to blame?
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Its, the fault of those countries governments whose policys depend on America to supply jobs, instead of building their own economy and developing an atmosphere not unlike the atmosphere we enjoy in America. that contributes to the ability and provides incentives to progress on their own. Don't wait for others to provide fot you.
1-09-2008 @ 9:57PM
Chirag said...
"Its, the fault of those countries governments whose policys depend on America to supply jobs.......you."
Less than 0.1% of the Indian workforce (not population, workforce) work for call centres. About 3% work for foreign companies like IBM. Even if you consider skilled white collar jobs, that 3% would become at the most 10%. Who do you think the other 97% work for? Do you know anything about India before you take the credit for "providing us"???
1-06-2008 @ 8:47PM
Bhala Ghatale said...
Outsourcing of jobs has been a boon for the Indian economy because it created increased the purchasing power many times. The increased purchase power resulted in growth in other industries & created a large middle class. Though IT is now a fraction of economy but it has helped every sector of economy grow at a faster rate due to the increased purchasing power & creation of a large middle class.
1-07-2008 @ 1:32PM
Bhala Ghatale said...
It is true we welcome coke & many other american companies to do business in India and they create more jobs for Indians and also help the American corporations a lot. Now India is buying jaguar & range rover manufacturing & our Indians are the richest people in the world. Indians own the largest steel mill business & expanding in every area. I think with the passage of time America will basically a consumer society. Actually Americans are already the largest consumers and and a great market for producing employment for Indians. Indians are not like illegals who do those menial jobs illegally. We do American jobs & export the American jobs in a legal way unlike those illegals. American should worry more about the illegals and may be put a wall around their southerrn border with Mexico.
1-22-2008 @ 3:41PM
Sunitha Ganeshan said...
This shows how narrow the mentality is here. You have illegal aliens who are given the red carpet and the legal "high skilled" workers who have to wait for decades to get permanent residents and ultimately return to India. So, now American companies are following them back to India, that's all. Please understand that US companies are not "providing" for anyone. They need us and are paying for our services. No one is doing any charity here. Do me a favor - go get yourself educated. Maybe you should also read more - and guess what, maybe that will improve your chances of getting a good job.