Can Obama Keep IT Jobs in the U.S.?

[AK]

I’m not sure I’d call that a balanced article. Their sources are:

1. “a global strategic advisory firm that specializes in outsourcing”

2. “an industry group of outsourcing leaders from Fortune 500 companies”

3. “president of World Sourcing Services for Computer Sciences Corp.”

All of whom have a vested interest in promoting the idea that all the cool kids are offshoring IT functions this year.

Ditto what everyone else says about salaries. Of course there are lots of brilliant software developers in India, but you won’t get them for $8K a year.

[kev374]

well, if people don’t have jobs here and the salaries are going down what do you think is going to happen to housing? or anything else for that matter? there is going to be deflation. Nobody is going to be able to afford the very products that these companies trying to offshore are selling.

Although India and China (to a lesser extent) has local demand it is not at all sufficient for American companies to be profitable, they need the American consumer to spend.

Also, $8000 is not going to get you a Sr. level software engineer in India. The going rate is around Rs. 20 lacs/yr ($40,000) with an annual income inflation rate of 15%. The savings are greatly exaggerated. I know, I just returned from India and things there are not so cheap there anymore..a 3bd apartment in Bangalore is over 1 crore Rupees ($200,000).

[kev374]

well, if people don’t have jobs here and the salaries are going down what do you think is going to happen to housing? or anything else for that matter? there is going to be deflation. Nobody is going to be able to afford the very products that these companies trying to offshore are selling.

Although India and China (to a lesser extent) has local demand it is not at all sufficient for American companies to be profitable, they need the American consumer to spend.

Also, $8000 is not going to get you a Sr. level software engineer in India. The going rate is around Rs. 20 lacs/yr ($40,000) with an annual income inflation rate of 15%. The savings are greatly exaggerated. I know, I just returned from India and things there are not so cheap there anymore..a 3bd apartment in Bangalore is over 1 crore Rupees ($200,000).

[kev374]

well, if people don’t have jobs here and the salaries are going down what do you think is going to happen to housing? or anything else for that matter? there is going to be deflation. Nobody is going to be able to afford the very products that these companies trying to offshore are selling.

Although India and China (to a lesser extent) has local demand it is not at all sufficient for American companies to be profitable, they need the American consumer to spend.

Also, $8000 is not going to get you a Sr. level software engineer in India. The going rate is around Rs. 20 lacs/yr ($40,000) with an annual income inflation rate of 15%. The savings are greatly exaggerated. I know, I just returned from India and things there are not so cheap there anymore..a 3bd apartment in Bangalore is over 1 crore Rupees ($200,000).

[kev374]

well, if people don’t have jobs here and the salaries are going down what do you think is going to happen to housing? or anything else for that matter? there is going to be deflation. Nobody is going to be able to afford the very products that these companies trying to offshore are selling.

Although India and China (to a lesser extent) has local demand it is not at all sufficient for American companies to be profitable, they need the American consumer to spend.

Also, $8000 is not going to get you a Sr. level software engineer in India. The going rate is around Rs. 20 lacs/yr ($40,000) with an annual income inflation rate of 15%. The savings are greatly exaggerated. I know, I just returned from India and things there are not so cheap there anymore..a 3bd apartment in Bangalore is over 1 crore Rupees ($200,000).

[kev374]

well, if people don’t have jobs here and the salaries are going down what do you think is going to happen to housing? or anything else for that matter? there is going to be deflation. Nobody is going to be able to afford the very products that these companies trying to offshore are selling.

Although India and China (to a lesser extent) has local demand it is not at all sufficient for American companies to be profitable, they need the American consumer to spend.

Also, $8000 is not going to get you a Sr. level software engineer in India. The going rate is around Rs. 20 lacs/yr ($40,000) with an annual income inflation rate of 15%. The savings are greatly exaggerated. I know, I just returned from India and things there are not so cheap there anymore..a 3bd apartment in Bangalore is over 1 crore Rupees ($200,000).

[patientlywaiting]

All the tech investments were due to public companies and IPO-wishful companies falling all over themselves to have “competitive advantages” so that they could claim higher stock prices.

That was a bubble onto itself. They were spending other people’s money.

Private companies are best to invest slowly and incrementally to take advantage of dropping prices of technology.

For example companies who invested in custom ERP or HR systems overpaid (and they will continue to overpay in maintenance and customization) because new off-the-shelf software is better.

If I owned a private company that were generating loads of cash (like Cindy McCain’s company) I would not spend it willy-nilly on unproven tech.

Would you upgrade hundreds or thousands of PCs when Windows 2000 or XP is good enough?

We are entering a new back-to-basic paradigm where operating cash flows (not wishful anticipated revenues) determine values of businesses.

Tech spending will shrink but it won’t be Obama’s fault.

[patientlywaiting]

All the tech investments were due to public companies and IPO-wishful companies falling all over themselves to have “competitive advantages” so that they could claim higher stock prices.

That was a bubble onto itself. They were spending other people’s money.

Private companies are best to invest slowly and incrementally to take advantage of dropping prices of technology.

For example companies who invested in custom ERP or HR systems overpaid (and they will continue to overpay in maintenance and customization) because new off-the-shelf software is better.

If I owned a private company that were generating loads of cash (like Cindy McCain’s company) I would not spend it willy-nilly on unproven tech.

Would you upgrade hundreds or thousands of PCs when Windows 2000 or XP is good enough?

We are entering a new back-to-basic paradigm where operating cash flows (not wishful anticipated revenues) determine values of businesses.

Tech spending will shrink but it won’t be Obama’s fault.

[patientlywaiting]

All the tech investments were due to public companies and IPO-wishful companies falling all over themselves to have “competitive advantages” so that they could claim higher stock prices.

That was a bubble onto itself. They were spending other people’s money.

Private companies are best to invest slowly and incrementally to take advantage of dropping prices of technology.

For example companies who invested in custom ERP or HR systems overpaid (and they will continue to overpay in maintenance and customization) because new off-the-shelf software is better.

If I owned a private company that were generating loads of cash (like Cindy McCain’s company) I would not spend it willy-nilly on unproven tech.

Would you upgrade hundreds or thousands of PCs when Windows 2000 or XP is good enough?

We are entering a new back-to-basic paradigm where operating cash flows (not wishful anticipated revenues) determine values of businesses.

Tech spending will shrink but it won’t be Obama’s fault.

[patientlywaiting]

All the tech investments were due to public companies and IPO-wishful companies falling all over themselves to have “competitive advantages” so that they could claim higher stock prices.

That was a bubble onto itself. They were spending other people’s money.

Private companies are best to invest slowly and incrementally to take advantage of dropping prices of technology.

For example companies who invested in custom ERP or HR systems overpaid (and they will continue to overpay in maintenance and customization) because new off-the-shelf software is better.

If I owned a private company that were generating loads of cash (like Cindy McCain’s company) I would not spend it willy-nilly on unproven tech.

Would you upgrade hundreds or thousands of PCs when Windows 2000 or XP is good enough?

We are entering a new back-to-basic paradigm where operating cash flows (not wishful anticipated revenues) determine values of businesses.

Tech spending will shrink but it won’t be Obama’s fault.

[patientlywaiting]

All the tech investments were due to public companies and IPO-wishful companies falling all over themselves to have “competitive advantages” so that they could claim higher stock prices.

That was a bubble onto itself. They were spending other people’s money.

Private companies are best to invest slowly and incrementally to take advantage of dropping prices of technology.

For example companies who invested in custom ERP or HR systems overpaid (and they will continue to overpay in maintenance and customization) because new off-the-shelf software is better.

If I owned a private company that were generating loads of cash (like Cindy McCain’s company) I would not spend it willy-nilly on unproven tech.

Would you upgrade hundreds or thousands of PCs when Windows 2000 or XP is good enough?

We are entering a new back-to-basic paradigm where operating cash flows (not wishful anticipated revenues) determine values of businesses.

Tech spending will shrink but it won’t be Obama’s fault.

[AK]

Thanks for the first-hand observations kev374.

This all reminds me of some Gary Watts propaganda from a few years back … IIRC he claimed Americans would soon be split into hereditary classes of homeowners and landless peasants, specifically citing India as an example. I guess our second-favorite real estate economist never read Marx’s hypothesis that the concentration of wealth results from the cash-rich buying up assets after a bust 🙂

[AK]

Thanks for the first-hand observations kev374.

This all reminds me of some Gary Watts propaganda from a few years back … IIRC he claimed Americans would soon be split into hereditary classes of homeowners and landless peasants, specifically citing India as an example. I guess our second-favorite real estate economist never read Marx’s hypothesis that the concentration of wealth results from the cash-rich buying up assets after a bust 🙂

[AK]

Thanks for the first-hand observations kev374.

This all reminds me of some Gary Watts propaganda from a few years back … IIRC he claimed Americans would soon be split into hereditary classes of homeowners and landless peasants, specifically citing India as an example. I guess our second-favorite real estate economist never read Marx’s hypothesis that the concentration of wealth results from the cash-rich buying up assets after a bust 🙂

[AK]

Thanks for the first-hand observations kev374.

This all reminds me of some Gary Watts propaganda from a few years back … IIRC he claimed Americans would soon be split into hereditary classes of homeowners and landless peasants, specifically citing India as an example. I guess our second-favorite real estate economist never read Marx’s hypothesis that the concentration of wealth results from the cash-rich buying up assets after a bust 🙂

[Author]

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