Tag Archives: outsourcing

Will your company move your position offshore?

IBM consolidated all of the development work for one of its major initiatives in Bangalore. I can’t even find Bangalore on a map without taking a few minutes. 

In my business, recruiting, some parts are being offshored. Sales companies are sending telemarketing offshore. Engineering is going to cheaper climes. Data entry is sent to other countries through our great telecommunications system. And many companies no longer have permanent offices or cubicles for large numbers of their “thought” workers. They work from home or on the road. This was true even before the pandemic.

It is a fact of life. Manufacturers had to face the music decades ago. Now it is everyone else’s turn. The economics of a world economy are not going away. You need to assess your skills and job starkly. Can your job be sent to Vietnam or Indonesia? What do you offer that is superior to their college-educated workforce?

David Foote defined three categories of “offshore-resistant” jobs in the computer field. They are enabler jobs, customer-facing jobs, and infrastructure jobs. I think he has the right idea, but he is an optimist. Some of the jobs he thinks are offshore resistant will go overseas. 

In your field, what are the offshoring resistant jobs? Which jobs cannot even be moved to California or Alabama? A recent study showed that half of the outsourced jobs are outsourced within the USA. The jobs leave your company and stay in the country.

There is a larger reason than potential unemployment to figure it out. The jobs that are most difficult to offshore are the most likely to be stable. They are more likely to have constantly increasing salaries. As the older generations retire, those jobs cannot be filled by unskilled labor. While the workforce shrinks, competition for people who can do those critical jobs will increase. Compared to today’s wages, some people are going to be paid outrageously well.

In your field, what are the offshoring resistant jobs? Just knowing will change your career.

Something to do today

Invite your boss or his boss to lunch. Take the chance to ask him what jobs are most and least likely to be offshored. It is worth paying for his lunch to find out.

The best workers can still lose their job

Some economists say that outsourcing jobs to China increases high paying jobs and wages in the US. Jobs don’t have to be outsourced to China. Here in Harrisburg, PA, a significant amount of high paying programming jobs were moved to California.

Even if it’s good for the economy in the long term, in the short term the reality is that workers get hurt when jobs are outsourced. 

Why California? It costs even more to get work done out there. How can that be economical? I can understand someone wanting cheaper labor and moving labor to China, but California makes little sense. 

In truth, a PA company was bought by a CA company. The PA company hadn’t been competing effectively, but still had a loyal customer base. Instead of letting the company run itself into the ground, the owners were able to sell to the CA company. 

The CA company got more customers, the customers got a better and more reliable service, and the PA owners were able to sell out before it got too dire. Everyone wins… except for the workers in PA.

For the economy, there is nothing better than capitalism leading to the demise of a company for the benefit of another. For a new jobless worker, there is little that is more terrifying.

Those workers did eventually find new jobs. It’s been years now. Were they all the best in their field? Of course not. However, the best of them still lost their job. 

It doesn’t take getting fired to lose your job. Jobs are outsourced all the time. 

When a company dies or the work is outsourced, people either re-train or retire. They use the new skills they learned to find new, better-paying work. 

Ship, Listing, Galapagos Islands, Sea

Are you getting new, valuable skills at your current job? In a dying company, there are people who will re-train themselves long before the company sinks, then use that to get a new job. It’s better to train and leave early than to wait until you’re up to your neck in water.

Something to do today

Write down a list of skills you’ve developed at your current job. What skills are your coworkers developing that are not on your list?

Every company wants the same job done cheaper

I compete every day with people living in India. More and more recruiting is being done in India. They aren’t stealing jobs, they are taking advantage of their skills and work ethic. Am I frightened? A little. So far, I am much better skilled than they are, but that may change. I’m going to continue to work like crazy to stay ahead. I’m going to help others do the same. 

They can work for cheaper. Every company wants the same job done for less money. What is your advantage?

Play to your strengths is my motto. My strengths are:

  1. I communicate well
  2. People trust me
  3. I am a technology geek and quick learner
  4. Connecting unrelated things is natural for me
  5. I get things done

Your strengths are different. These are my deepest skills. What are yours? You need to know what they are to stay ahead. You should know which important skills that you’re weak in that can be used against you and work to improve them. Are you weak in people skills? Maybe you need to practice being more sociable. Are your technical skills not the best? Maybe you need to check up on the newest practices in your field.  

People will always want to steal your job. Someone in your city will also be applying to your company to steal your job. Someone from another country might be looking for your job to be outsourced to them. If you earn one dollar above the minimum your company pays, one of your coworkers wants to steal your job and pay. Get used to it.

Figure out your greatest strengths, improve them, and stay ahead.

Something to do today

List your greatest strengths. Don’t put down what you learned most recently. Don’t put down your job description. Why do people want YOU to be the person doing your job instead of someone else?

Replacing engineers with a robot that can even use Skype?

Watch out. Those simple questions that help desk folks get tired of are now being answered software robots.  They can even use a Skype like interface.  Read more here. It is the ultimate outsourcing.

What to do if your job is outsourced to California or China

If you took all the economists in America and laid them end to end from Los Angeles to New York City, they would each point in a different direction.

I heard an economist say that every time a Walmart opens in a community, that the number of jobs increases and the average pay for each job increases.  He also said that outsourcing jobs to China increases high paying jobs and wages in the USA.  The real problem is that whatever happens in the long run, in the short run people get hurt.

Here in Harrisburg, PA some high paying jobs were outsourced to California, where it costs even more to get work done.  How can that be economical?

The economist worries me much less than the jobs moving to California. Why would someone move jobs to a high cost location?  I can understand being cheap and moving them to China or Walmart.

What really happened is that companies were merging in the software field.  The one in Harrisburg, PA was not competing effectively.  Their product was looking old, slow and not very flexible.  The CA company was winning the sales game, but there were a lot of customers who wouldn’t move off the old PA platform.  The CA company bought the PA company to get the customers.  The owners of the PA company were glad they didn’t have to run their company into the ground.  The customers were pleased because they were getting a better support organization and the chance to move to the new platform. Everyone won except the workers in PA. They had to find new jobs.

They did find new jobs.  It is 12 years later. Everyone I knew in that company is now working on newer technology and earning more.

There is nothing in business as intensely fertile as an American company getting trounced by another American company. In the dying company everyone looks at their contribution to their own demise.  They then use what they learned to compete against higher paid workers.  New skills are learned.  New jobs are created.

In every dying company there are some people who re-train themselves early on and leave for better jobs.  When the old company dies, the rest of the workers then re-train or retire.  The people who re-train themselves early are better off.  They are earning more money much earlier.  They are also prepared to step away from their job into a better paying one if their job is outsourced to China or Walmart.

Doesn’t it make sense for you to constantly be re-training yourself?  Be prepared for the changes in the economy.  Someone is going to earn more and be more secure.  Shouldn’t it be you?

Something to do today

Write your accomplishments in your job journal.  Remember, your boss doesn’t really know what you do all day.  Give him a report.

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Next:   Prove it

Later:              The last thing you say in an interview

How to stop foreigners from stealing YOUR job

In 2007 the country that lost the most jobs to cheap labor markets was China.  No, it was not the USA.  Manufacturing plants are moving out of China at a record breaking speed.  They are moving into China even faster, it is true.  But, China is not the cheapest place on the globe for low skilled labor. Outsourcing is a huge problem in China, the USA, and India.

I compete every day with people living in India.  More and more recruiting is being done in India.  They aren’t stealing jobs, they are taking advantage of their skills and work ethic.  Am I frightened?  A little.  So far I am much better skilled than they are, but that may change.  I’m going to continue to work like crazy to stay ahead.  I’m going to help others do the same.

Play to your strengths is my motto.  My strengths are:

  1. I communicate well
  2. People trust me
  3. I am a technology geek and quick learner
  4. Connecting unrelated things is natural for me
  5. I get things done

Your strengths are different.  These are my deepest skills.  What are yours?  You need to know what they are to stay ahead.

Foreigners will always want to steal your job.  Someone in your city will also be applying to your company to steal your job.  If you earn one dollar above the minimum your company pays, one of your coworkers wants to steal your job. Get used to it.

Figure out your greatest strengths, improve them, and stay ahead.

Something to do today

List your greatest strengths.  Don’t put down what you learned most recently.  Don’t put down your job description.  Why do people want YOU to be the person doing your job?

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Tomorrow:           The tsunami is coming