An interesting juxtaposition of stories today on outsourcing. On the Business Week blog is this story – The Myth of High-Tech Outsourcing:
High-tech employees are back in demand. The U.S. technology industry added almost 150,000 jobs in 2006, according to an Apr. 24 report by the American Electronics Assn. (AeA), an industry trade group. That was the largest gain since 2001, before the implosion of the tech bubble resulted in the loss of more than 1 million jobs in three years.
The findings counter concerns—sometimes voiced by opponents of outsourcing—that high-tech jobs are being sent overseas.
And over on the UK blog, New Economist, is this posting – The road to India:
More evidence of the global relocation of white collar labour today. The week before last, Citigroup announced it was to cut 17,000 jobs, and relocate 9,500 to India and other “lower cost locations”. Today we read of another bank slashing jobs in the west and offshoring others: Barclays to Shift 10,800 Jobs to India, Elsewhere to Cut Costs,
Seems like we still don’t understand what is really happening with task-level competition (see Alan Blinder’s paper in Foreign Affairs- Offshoring: The Next Industrial Revolution?, the Grossman/Rossi-Hansberg paper at last summer’s Fed Jackson Hole symposium – The Rise of Offshoring: It’s Not Wine for Cloth Anymore, and Baldwin – Globalisation: the great unbundling(s)).