"Doctors?  MMMMMaybeee..."

Saw a piece on NBC the other night where they're sending CAT scans /
x-rays to India to be read.

-----Original Message-----
Sent: Thursday, October 30, 2003 7:09 PM
To: Multiple recipients of list ORACLE-L


I think that's intentional.  After the .com craze, IT salaries went
through the roof, and Corporate America came to the conclusion that it
just wasn't going to pay a lot for that muffler anymore... and the huge
supply of low wage labor in the "Third World" provided a hedge by which
Corporate America could play "Global Wage Arbitrage".  They had already
played that game with factory workers, whom Corporate America thought
were grossly overpaid, and suffered slim ill affects.  Now, they see no
reason not to do it with IT, and when big companies play that game,
little companies benefit by the increased labor pool (due to corporate
layoffs) and therefore lower wages (due to increased competition).  It's
only the workers who suffer, and, as they learned when factory jobs went
to Mexico and then to China (because Mexico's workers had become too
expensive), no one really cares.

You can see that same trend in that article (we went to India, but now
*they're* too expensive, so now we're going to Argentina).  This could
go on indefinitely until every last IT job is in China (the final
resting place for all cheapness as the government ensures that workers
are paid very little and there's just *gobs* of people there to snarf up
every job that comes in).  Except.

We in the "high wage markets" have a natural advantage because this
technology was invented in our backyard and we have boodles of
experience with it.  IT is not like pushing a button and letting a
machine do the work. Once *that's* in place, we'll all be screwed.  But
in the meantime, we can offer something in exchange for our high
salaries (by global standards)... our expertise.  Does that matter?  I
hope so.  Time will tell.

If not, who's next?  Engineers?  Sure.  Architects?  Definitely.
Lawyers? No, they have to be here to argue cases.  Doctors?
MMMMMaybeee...

Over time, costs continue to "flatten" on a global scale.  Once China
sees full employment, the rest of the "Third World" countries around the
world will see their standard of living increase... while in America and
Europe and other "high wage markets" (Israel and Japan), the standard of
living will tank for most of the middle class... until we meet a global
wage equilibrium, probably some time in the middle of the next century.
Now, I'm not saying this is a bad thing.  In fact, apart from the fact
that I am directly hit by this, I think it's a good thing in terms of
the evolution of human development.

However, each of us on this list will be affected by this in one way or
another sooner or later, unless this game ends.  The end of this game is
delimited by the answers to two fundamental questions which Corporate
America must answer on its own.  The first is "how can the players in
Corporate America maintain a huge percentage increase in profits year
after year without sacrificing quality, thus impacting profits?" (see
article), and second, and more fundamentally, "if Corporate America
destroys Middle Class America (the consumers of last resort), who will
buy their products, thus guaranteeing their profits?".  If "China" is
not the answer to the last question, the whole game falls in on itself.
This should be answered in the next 20 or 30 years.

In the meantime, the rest of us can ask "what service can I personally
provide that someone in Guam can't do cheaper?".

Plumbing, anyone?
Bambi.

-----Original Message-----
Sent: Thursday, October 30, 2003 2:39 PM
To: Multiple recipients of list ORACLE-L


But sure as hell does drive salaries down over here.

On 10/30/2003 03:04:24 PM, [EMAIL PROTECTED] wrote:
> The perception of outsourcing has been that you can send your work
> offshore,
> and get it done cheaper, with higher quality.
> 
> I think that this article helps to dispel that as a myth.  It may or 
> may
> not be 
> less expensive, it may or may not be better. 
> 
> Jared
> 
> 
> 
> 
> 
> "Jamadagni, Rajendra" <[EMAIL PROTECTED]>
> Sent by: [EMAIL PROTECTED]
>  10/30/2003 09:49 AM
>  Please respond to ORACLE-L
> 
>  
>         To:     Multiple recipients of list ORACLE-L
<[EMAIL PROTECTED]>
>         cc: 
>         Subject:        RE: Outsourcing's dirty secret
> 
> 
> What is also unfortunate that the company X which outsourced its 
> project
> to India, didn't do its job right ... If you just want the cheapest
Rolex,

> you can't complain about its quality later on. I am not saying this
> couldn't have happened, whatever happened is unfortunate, but I am
just 
> saying that the company didn't understand CYA sufficiently, it is just
a 
> blame game now.
> 
> C'mon ... I think that article is one side of the coin.
> Raj
>
------------------------------------------------------------------------
----
----
> Rajendra dot Jamadagni at nospamespn dot com
> All Views expressed in this email are strictly personal.
> QOTD: Any clod can have facts, having an opinion is an art !
> 
> 
> -----Original Message-----
> Sent: Thursday, October 30, 2003 11:59 AM
> To: Multiple recipients of list ORACLE-L
> 
> 
> List - If a manager seems to be contemplating outsourcing, you might 
> want
> to
> post this. Unless you work for an outsourcer. ;-)
> 
>
http://techupdate.zdnet.com/techupdate/stories/main/Hidden_Costs_of_IT_O
utso
urcing.html
> 
> Dennis Williams
> DBA
> Lifetouch, Inc.
> [EMAIL PROTECTED]
> -- 
> 
> 
>
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> -- 
> Author: Jamadagni, Rajendra
>   INET: [EMAIL PROTECTED]
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Mladen Gogala
Oracle DBA



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