WSJ : Offshore Jobs - Around the Web
WSJ : Offshore Jobs -- As in 3 Miles Out
A regular look at jobs, outsourcing and trade from around the Web
By MEGAN BALLINGER and JIM CHAIRUSMI THE WALL STREET JOURNAL ONLINEMay 4, 2005
The U.S. economy has been hitting some bumps, and jobs still seem scarce. Workers in many industries are nervous that they may be out of work soon, thanks to cheaper labor overseas. But some economists argue that offshoring is part of free trade, and the money saved will be reinvested in new job-creating businesses at home. Here's a look at what's new in the jobs debate from around the Web. (Some links may require registration or subscriptions.)
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SWEATSHIP: David Cook and Roger Green have an interesting alternative to sending software work halfway around the world. Send it about three miles outside of Los Angeles, right on the Pacific Ocean. The entrepreneurs plan to purchase a cruise ship which they'll staff with 600 software engineers, the Boston Globe reports. Messrs. Cook and Green say one of the biggest problems with outsourcing is simply the distance. By setting up a team of engineers just offshore, executives will be able to check up on their projects without "killer flights to India." SeaCode plans to pay its employees roughly three times what they'd earn in Bangalore, but still much less than a comparable American engineer's salary. Workers will do four-month stints on the floating software factory, where room, board and laundry will be free. For more details on the project, check out their Web site (www.sea-code.com).
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'TIS THE SEASON: Small-business owners who rely on international workers for seasonal help say a cap on foreign visas is threatening their livelihood. The Associated Press reports that jobs at hotels and restaurants in tourist towns are going unfilled after all 66,000 visas for foreign workers under the government's H2B program were snatched up at the beginning of the year. Business owners say local workers don't want the jobs, which often are backbreaking or monotonous. In Maryland, only four of 25 seafood processors, who pick and package crabs, were able to get visas for workers this season, the Baltimore Sun reports. So far, the lack of workers hasn't made much difference in the state because low water temperatures have kept crabs from becoming active.
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PREMJI'S NEW CAR: If you were the richest man in India, what kind of car would you buy? Azim Premji, the billionaire chairman of outsourcing firm Wipro Ltd., recently traded in his 1996 Ford Escort for a shiny new Toyota Corolla. U.S. News & World Report contrasts the spartan lifestyle of India's best known CEO with his American counterparts, who Mr. Premji says, are treated like kings. U.S. News also reports on Bangalore's big dreams of offering more complex tech services, like designing the next wave of consumer electronics.
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VOICING CONCERN: Voice of America plans to shift its overnight news operations to Hong Kong from Washington, D.C., a move that will save the government-funded broadcaster $300,000 annually. NPR talks to VOA's director about the move. Reaction to the news has been sharp. A Baltimore Sun editorial calls the agency on the carpet, asking "What's next? Outsourcing humanitarian relief operations of the U.S. Agency for International Development to Sudan?"
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PART TIME BLUES: Unemployment figures released by the Labor Department don't include the underemployed -- workers cobbling together part-time or temporary jobs as they search for permanent full-time work. The Detroit News says these workers can suffer a "unique brand of hardship." Middle-managers, recent college graduates and veteran skilled tradesmen share their experiences with being stuck in jobs that come without benefits and little chance to transition to full-time work.
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TAKE ME OUT: Money in the pockets of the middle class means times are changing in India. The latest way of life to be affected: eating habits. Where once Indian women cooked everything from scratch, now more and more families are buying premade meals from the grocery store -- or just eating out. Mumbai's leading restaurant critic describes to the New York Times how the restaurant terrain in her homeland has been transformed. Convenience and variety are now the menu of the day. Sushi, virtually unheard of in India, now has quite a presence with a spate of sushi bars opening across the city. Meanwhile, Indian and American fast food chains compete for customers.
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SPEEDBUMP: Infosys Technologies' and Tata Consultancy Services' disappointing first-quarter results gave investors a jolt. But, as the Wall Street Journal reports, earnings troubles may not mean the end of a rally for Indian tech companies. Many industry watchers say India's tech darlings still have room to run. "The outsourcing story is still very much there, and Indian companies have demonstrated that they can provide value for money," says Dipen Shah, a software-company analyst.
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DOCTOR DISMAL: After four years of college, 10 years of graduate education and the investment of a small fortune in studying the larger questions of the humanities, how are job prospects for Ph.D. recipients? The [Duke] Chronicle reports that the outlook is dismal. As more universities cut back on the number of tenure-track positions that they offer in the humanities, options for Ph.D graduates become more limited. William Pannapacker, a 1999 Duke graduate and professor at Hope College in Holland, Mich., estimates only one out of five humanities Ph.D. holders will make it in academia.
posted by Henry @ 11:35 AM
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