OxBlog

Thursday, January 08, 2004

# Posted 11:58 PM by Ariel David Adesnik  

DON'T UNDERESTIMATE THE INDIANS: Here are two responses to my post from yesterday. The first is from DS:
In your recent post "THE INDIAN COMPUTER GEEK MEME" you write:

"Today, job security comes from acquiring knowledge, not building a relationship with a single firm. This model isn't perfect, but it's still damn good."

If only this were true! You still apparently believe the Clinton administration's mantra about knowledge workers. Even the members of the former administration have abandoned their claims: knowledge workers' jobs are the most portable, the ones being exported, and the ones most subject to shrinking wages due to competition whether from offshore outsourcing or importation of cheaper workers from overseas. The $150,000 programmer is largely a thing of the past-- the same guys are making $80,000 or even $50,000 now.

In recent quarters most of the growth both in numbers of jobs and wages have been in relatively non-portable, less-subject-to-foreign-competition sectors like government and health care. Both areas are secure not due to being knowledge workers but due to protection. Health care is one of the most regulated of all fields e.g. licensing, restrictions on telemedicine, etc. And that's where the growth is. Coincidence? Perhaps.
In response to the prediction that the computer industry will lead the field in job growth, JH writes that
I wouldn't put too much faith in those predictions.

It looks like they are largely based on data gathered before the bubble burst, and also probably don't take the current outsourcing boom into account. Nor does it seem to take the length of the jobless recovery period into account.

There are salary numbers from 2001, but the outlook portion refers to 2000, suggesting to me that this part of the report was drawn up in 2000 or earlier.

It wouldn't exactly be the first time that real-world conditions changed far faster than the government could respond...
This issue is pretty far outside my area of expertise, so I don't have a compelling counterargument to offer. In other words, I take DS and JH's comments very seriously. Even so, I'm going to hold on to my position for the moment. My gut says that India can't turn out enough programmers to satisfy a growing computer industry both at home and in the United States.

What I expect to see is a situation somewhat similar to the one in the manufacturing sector, where less demanding tasks are outsourced while cutting edge work is reserved for advanced facilities (with well-paid workers) in the US, Europe and Japan.
(0) opinions -- Add your opinion

Comments: Post a Comment


Home