Sunday, May 2, 2004

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Back on the telly again

My outsourcing mediafest continues -- I'll be on CNNfn's Dolans Unscripted this Monday morning at around 10:10 AM Eastern Daylight Time.

Outsourcing will be the topic -- but it's unscripted, so who knows what could come up in conversation!!

UPDATE: Well, that went better than my last CNN experience. I'm sure the 2,000 household that get CNNfn enjoyed it.

C'mon, Lou Dobbs -- if CNNfn and CNN International are willing to interview me on outsourcing, what are you so afraid of?

I dare you, Lou. I double-dog-dare you.

posted by Dan on 05.02.04 at 08:20 PM


Excerpted from

Global demand for CLLCS [i.e. customized lifelong learning and career services] will grow in no small part because today's beneficiaries of outsourcing will be tomorrow's outsourced.


"As demand for Indian workers increases, their prices are rising, just like anything else. Wipro's Paul says that even though his sales soared 50% last fall, his margins are shrinking, mostly because of rising labor costs. India has been discovered,' he says. 'It's something that is as susceptible to global competition as anything else.' Wipro, in an effort to rein in expenses, is pushing workers to be more productive. But at some point in the future, the trend that is pulling jobs out of America will catch up with India. Somewhere a lower-wage alternative will develop--Central Asia, the Philippines or Thailand--and Indian politicians and workers will be clamoring about foreigners taking their jobs. It's not pretty wherever it happens, but it's just the way the business world turns."

March 1, 2004


America will be the Silicon Valley of CLLCS.


"The European Commission recently published a painstaking ranking of the world's best universities, compiled by researchers in Shanghai. Of the top 50, all but 15 were American."

The Economist
January 22, 2004

"U.S. education is perceived worldwide as the gold standard in higher education. We'll definitely see more companies branching out internationally."

Sean Gallagher
Senior analyst
February 2004


CLLCS will create many good jobs for Americans.


"Generally, productivity growth is a boon, but it creates problems for non-productive enterprises like classical music, education, and car repair: to keep luring talent, they have to increase wages, or else people eventually migrate to businesses that pay better. Instead of becoming nurses or mechanics, they become telecom engineers or machinists. That’s why teachers are getting paid a lot more than they were twenty years ago. (The average salary for an associate college professor has risen almost seventy per cent since the early eighties, and that’s if you adjust for inflation.) To pay those wages, schools and hospitals have to raise prices. The result is that in industries where productivity is flat costs and prices keep going up. Economists call this phenomenon “Baumol’s cost disease,” after William Baumol, the N.Y.U. economist who first made the diagnosis, using the Mozart analogy, in the sixties. As anyone with kids knows, cost disease is alive and well. A recent study by the economists Jack Triplett and Barry Bosworth demonstrates that among the service businesses that have been least productive in recent years you’ll find education, insurance, health care, and entertainment. These are the ones that have seen steep price hikes."

The New Yorker
July 7, 2003

"Baumol has predicted that the share of gross domestic product...spent on education will rise from 6.7 percent to 29 percent [in 2040]."

The Atlantic
January/February 2004


So now Americans can learn to stop worrying and LOVE outsourcing ;-)

posted by: Frank Ruscica on 05.02.04 at 08:20 PM [permalink]

I don't understand why Dan is being asked to talk.

He doesn't know jack shit about the reality of outsourcing, nor is it likely he will face it himself any times soon.

He relies solely on second-hand or third-hand information. He is incapable of spotting a bullshit pro-outsourcing argument - or he doesn't care, as long as it's pro-outsourcing.

He's like that economist Virginia Postrel talked to about outsourcing for the Times - the woman who was utterly ignorant of the existence of sites like had the gall to talk about IT job searches. That frankly seems to border on the unethical.

It's a mystery.

posted by: Jon H on 05.02.04 at 08:20 PM [permalink]

Frank writes: "Instead of becoming nurses or mechanics, they become telecom engineers or machinists"

Why the FUCK would anyone become a telecom engineer or a machinist? Those are both ripe for outsourcing. Machinists largely work to support manufacturing, and manufacturing is going offshore. So being a machinist is probably a dead end, not a better paying business.

posted by: Jon H on 05.02.04 at 08:20 PM [permalink]

Hmm Dan prolly gets on to TV 'cause he's go a combination of
- being an 'expert' (the show doesn't want to look like they just pulled someone off the street)
- looks good on camera (I dunno what he looks like, I'm assuming)
- can speak well, has a good conversational tone (boring ppl are no good on TV)
- have an aversion to arguing with ppl
- Dan's got experience being in front of a camera
- Dan has also been known to give-out, even before the movie starts (actually I just made that up)

posted by: Factory on 05.02.04 at 08:20 PM [permalink]

Yes, this is correct. There no jobs being outsource, or the efect is negilible. I haven't seen any non US people at all where I work. All the products I purchase were manufactured in the US (they just put those tags 'made in china' on them to be fair). I don't know of anyone in data processing who has lost their jobs to any overseas outsourcers, and it's easy to find a new postion in all the new jobs being created by the offshoring. Just look in the want ads in the Greenville News. There are literlly thousands of jobs in the paper; you can just pick in choose among engineering and data processing, and the pay is fantastic. I have to go now and go on several new position interviews. (What outsourcing, ha).

posted by: Dan on 05.02.04 at 08:20 PM [permalink]

"Dan" -- with spelling and grammar like that, I'd want to fire you long before there was even the slightest chance of outsourcing your position.

Jon H. -- By your criteria:

a) Are only unemployed tech workers able to talk about outsourcing, even though -- as I'm sure you're aware -- the phenomenon also covers non-IT jobs?

b) Name me an article that meets your rigorous standards and is anti-outsourcing.

posted by: Dan Drezner on 05.02.04 at 08:20 PM [permalink]

Watch Lou Dobbs on CNN; 6:00 PM Eastern. Have you ever had a job outside academia?

posted by: Dan on 05.02.04 at 08:20 PM [permalink]

Um, Dan (the poster). Full disclosure is nice, but I would not put your work e-mail in the e-mail address slot. Particularly as your employer is an example of foreign investment in the USA.

posted by: Appalled Moderate on 05.02.04 at 08:20 PM [permalink]

Dan Drezner asks Jon H.:

"Are only unemployed tech workers able to talk about outsourcing, even though -- as I'm sure you're aware -- the phenomenon also covers non-IT jobs?"

I will take a shot. Anyone can talk, we still have Free Speech, at least outside of academia. But one would expect media to interview people who have some personal experience, knowledge, something they know about outsourcing. Rehashing pro-outsourcing PR releases from trade groups is journalistic hacksterism, not an informative conversation about issue touching millions of your countrymen.

posted by: Mik on 05.02.04 at 08:20 PM [permalink]

Dan, Dan, Dan! Dobbs is already convinced that outsourcing is a bug-a-boo. He also is CONVINCED that you have some very real and cogent arguments that say otherwise. He is NOT ABOUT to let you on to present facts, besides, his masters at CNN really don't want to let him do any real reporting; which leads me to wonder why the info was on CNN International and CNNfn.

But, maybe I'm too harsh . . . NOT!

posted by: gmroper on 05.02.04 at 08:20 PM [permalink]

Dan Drezner writes:

"Dan" -- with spelling and grammar like that, I'd want to fire you long before there was even the slightest chance of outsourcing your position."

Dan's spelling and grammar are better than of 90% of Chinese speakers with PhDs from US schools I have worked with.
I bet one or two had PhD from University of Chicago.

The question is why UC is glad to grant PhD to a poor English speakers but Dr. Drezner is only too glad to fire an American with not so poor English?

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