Tech jobs flee overseas

Posted by in Uncategorized Mar 2nd, 2004

This in from Educause …

LABOR COSTS PUSH TECH JOBS OVERSEAS

Executives from technology companies speaking at the Reuters Technology, Media, and Telecommunications Summit in New York last week said that although the tech sector is experiencing an upswing, labor costs will drive most new tech jobs overseas. An executive from Electronic Data Systems Corp., for example, said his company's pool of tech workers in countries such as India will likely rise from 9,000 today to 20,000 by 2006. Many companies at the event said they have no plans to increase their workforces. Several states are considering legislation that would require companies working on government
contracts to use employees inside the United States. Michael Turner of the Information Technology Institute suggested that federal laws that prohibit sending personal information abroad–such as exist in several European countries–might be a more effective means of fighting the trend of sending tech jobs overseas.Reuters, 27 February 2004.

Interesting end note there. I'm constantly amazed that we don't do more to protect our personal information in the U.S. as they do in Europe where the laws of disclosure for such information are a bit stricter … hence much of the wrangling over border agencies sharing information on airline passengers.

No wonder our tech boom went bust so fast. I knew a fellow from India when I lived in Brussels who works in the tech sector and after stints in Silicon Valley, London and Brussels, eventually went back to India. He followed the 'gold rush' and did pretty well. Considering this, another factor is that those who are willing to move around to find the tech jobs such as my friend come from a country where the standard of living is much lower than the U.S., so it is a bit easier for them to ride the waves and eventually settle back in their home country after grabbing their share of the pie. Not so easy for U.S. workers to leave a high standard of living and go to India to work (I don't know the policy on foreign workers there anyway, though I'm assuming it is more strict). Interesting to watch all this of course … but if I were advising any would-be techies out there, I'd say learn some languages along with your technical courses.

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