I find it interesting that the US Legal profession has blocked outsourcing of attorneys. Falls under the unauthorized practice of law... requires foreign attorneys to work directly for a US attorney. Consequently large law firms contract offshore attorneys for a few bucks an hour and turn around and bill them out full boat to their clients. Seems the licensing and regulatory requirements can keep certain skilled jobs here... Military contracting is another area where for security clearance you must be US born.. not naturalized or an immigrant.
Like I have said before, the private sector middle class and working class are caught in a huge global cost of living arbitrage that is being done by US corporations. At the same time that real wages are falling, our financial sector/government pump up the value of things like healthcare, housing, and education. The consequence is that in order to buy such things, the middle and working class are increasingly becoming debt serfs. The only people making out are rock solid legally protected professions, entrepreneurs, owners, and federal workers. I for one believe it is both strategically and morally foolish to give up our real productive economy (making stuff, fixing stuff, etc) for the sake of short term arbitrage profits. The reason it can't be stopped is because for owners of corporations and the financial sector, it is just to lucrative in the short run to let pass. It should not surprise us. Lenin was right when he said that the capitalist will sell the rope he is hung with.
in my opinion reason for latest IT and wider job move is not cost of living arbitrage but multiplier. west is indebted. Forget about productivity worker a vs b. Work does not matter. What matters is same 1 dollar paid in salary will have multiplier lots more than 1 in india but probably less than 1 in US. Companies pushing outsurcing own infrastructure, land, officials etc in target country so they will be major beneficiary of that multiplication. 1 job outsurced could mean 0.5M in profits over 10 yrs because of debt taken out, following property rise, inflation, share price rises, things like that. It is a classic bubble. but at some point when value for money matters again, will revert. it is too unstable and know too little for me to join the ride up right now. Hovewer I am looking for a good spot to enter long.
so do you fear being laid off? Are you planning on continuing in IT? will this trend get worse or has it levelled off? what do you think the IT field will look like in the US in 10 years?
What matters is same 1 dollar paid in salary will have multiplier lots more than 1 in india but probably less than 1 in US. Companies pushing outsurcing own infrastructure, land, officials etc in target country so they will be major beneficiary of that multiplication. ------------------------------------------- BINGO! Not only is it a multiplier but Investing in Hard Assets, Ie: Buildings, Land in India, Brazil, etc is yielding better profits than here in America. The upside in both Brazil, India, Vietnam, etc is brighter than in the US....for now. Not sure what 10 years down the road will look like but I doubt India will be in worse shape. Also, Health Insurance. The US Health Care bill will be another incentive to move off shore. MUMBAI is being looked at, as the next Financial Capital of the world. This could be huge for IT. Also, it this happens, more attention to going off shore.