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- Newsgroups: comp.software-eng
- Path: sparky!uunet!ukma!wupost!zaphod.mps.ohio-state.edu!news.acns.nwu.edu!nucsrl!ddsw1!tcubed
- From: tcubed@ddsw1.mcs.com (James Hanlon)
- Subject: Re: SE going offshore?
- Message-ID: <Bxvo8y.Dt5@ddsw1.mcs.com>
- Date: Tue, 17 Nov 1992 20:43:45 GMT
- References: <1992Nov13.142754.12335@ornl.gov>
- Organization: ddsw1.MCS.COM Contributor, Chicago, IL
- X-Newsreader: Tin 1.1 PL3
- Lines: 29
-
- jov@styx.ornl.gov (Judd Jones) writes:
- : One of his many claims was that just as the US has virtually lost
- : the DRAM industry (global market share down from 100% in 1976 to
- : 15% today), it will also lose the software industry.
- :
- : His basic argument is that there are plenty of clever, well-trained
- : people in developing countries willing to work for less than their
- : US-based competitors. One example is the HP software shop in Bombay.
- : It will be economically inevitable that this labor-intensive
- : industry will be exported to places where labor is cheap.
- :
- Yes, it's inevitable, and happening faster than you think. One reason
- is the impact of communications technologies on opening up formerly
- remote markets. Another is simple: management policy. Large US corporations
- seeking international market expansion are regularly offered deals
- contingent on their establishing cooperative manufacturing/development
- ventures. The economics of exporting tasks to the low-wage areas is
- compelling (in fact it's management's fiduciary duty to do so); the obvious
- result is a rapid decrease in job advancement possibilities in the higher-wage
- location, followed by division closings. This last effect sometimes is lost
- on managers until it's too late.
-
- As for language barriers, forget it. There are plenty of smart kids in
- Jakarta, Santiago, and Moscow desperate to learn enough English to
- qualify for a $500/mo job with a multinational firm. They'll do just
- fine with software development, once they get access to the computers.
-
- Jim Hanlon
- tcubed@ddsw1.mcs.com
-