Has anyone on CD thought that maybe Outsourcing and Offshoring destroyed our economy? (wages, illegal)
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It's total cost atizar. It's more than taxes. Companies look at the total cost.
Lately Malaysia and Vietnam are cheaper than India/China and the people there are becoming more educated for high end white collar work.
Most big company HR departments are staffed and run out of Malaysia now.
A company can hire 4 Chinese programmers for less the cost of 1 American programmer. That let's them staff projects and still pocket enormous amounts of profits. That's how your CEO's get millions in salaries and bonuses. All that excess profit is shared at the top by the executives.
It's total cost atizar. It's more than taxes. Companies look at the total cost.
Lately Malaysia and Vietnam are cheaper than India/China and the people there are becoming more educated for high end white collar work.
Most big company HR departments are staffed and run out of Malaysia now.
A company can hire 4 Chinese programmers for less the cost of 1 American programmer. That let's them staff projects and still pocket enormous amounts of profits. That's how your CEO's get millions in salaries and bonuses. All that excess profit is shared at the top by the executives.
Of course. You're taking coals to Newcastle here. But what do they claim? That taxes make them do it. I have heard practically no large business owners who outsource lay it at the feet of salaries. Which we all know, but they don't seem to talk about much. They just tie it to taxation. Even though it's these very arrangements that make it easier for them to pay very little taxes.
Anyway, what is admirable about hiring people in other countries because they want less compensation? What is understandable about that? It's selling out, and it's tantamount calling your own countrymen "spoiled brats". I have no sympathy for them just because someone else will do it cheaper. If I did, I'd be screaming for illegal immigrant amnesty, but I am certainly not.
Of course. You're taking coals to Newcastle here. But what do they claim? That taxes make them do it. I have heard practically no large business owners who outsource lay it at the feet of salaries. Which we all know, but they don't seem to talk about much. They just tie it to taxation. Even though it's these very arrangements that make it easier for them to pay very little taxes.
Anyway, what is admirable about hiring people in other countries because they want less compensation? What is understandable about that? It's selling out, and it's tantamount calling your own countrymen "spoiled brats". I have no sympathy for them just because someone else will do it cheaper. If I did, I'd be screaming for illegal immigrant amnesty, but I am certainly not.
Yes, I agree that the companies scream taxes as the reason.
Another big one I didn't mention for the offshoring is regulations and safety costs but this is mostly for mfg type work.
China factories compared to US factories...no comparison whatsoever.
What currently works in China wouldn't make it past it's first day if that were tried here in the US.
Anyway, what is admirable about hiring people in other countries because they want less compensation? What is understandable about that? It's selling out, and it's tantamount calling your own countrymen "spoiled brats". I have no sympathy for them just because someone else will do it cheaper. If I did, I'd be screaming for illegal immigrant amnesty, but I am certainly not.
Well you can't say that you are moving offshore because American workers are too greedy and then turn around an expect those folks to buy your products after you've accused them of being greedy. Much easier to blame the government and have the sheepies carry your water for you.
Yes, I agree that the companies scream taxes as the reason.
Another big one I didn't mention for the offshoring is regulations and safety costs but this is mostly for mfg type work.
China factories compared to US factories...no comparison whatsoever.
What currently works in China wouldn't make it past it's first day if that were tried here in the US.
For sure.
And related to your last paragraph, I had to switch careers about 10 years ago because so much of our circuit board mfg. went to mainland China, among other places. All we have left are board houses that make specialty boards nowadays, and those jobs are hotly contested for.
I was chatting to an assistant Controller at a multi-billion US Corp about 2 years ago. He said they were actively looking at bringing some offshore activities back onshore because 1) they costs were beginning to equalize as the 3rd world countries became more expensive, 2) infrastructure was much more reliable in the US, 3) work ethic especially in the mid-west was far better and 4) "political" benefits of being onshore were significant.
Well Jaggy001..not all companies have realized that yet. At mine, we are looking over our shoulders every quarter to find out how many got layed off. I'm with a big company and that number is in the thousands...even now in 2010. The jobs aren't gone..they are offshored.
It's very simple...follow the money. The money is NOT in the US anymore.
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