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Last week, a Philadelphia hip hop and R&B station, Power 99 FM, was forced to suspend two radio DJs for making offensive remarks on the air during a “comic” segment. In the course of the segment, a host tried to order hair beads from a U.S. manufacturer’s call center in India. He hurled racially charged abuses (relating to the supposed loss of U.S. jobs to Indians) at the attendant, before hanging up and laughing triumphantly. As the issue was trumpeted across the Indian media, it proved to be just the latest ugly episode in the U.S. anti-outsourcing movement, which continues to damage America’s image overseas.
The anti-outsourcing movement received significant attention from across the political spectrum as a hot-button issue in the 2004 elections. While President Bush and Republicans in the Senate mostly quietly towed their free trade party line, portions of their electoral base (particularly the rural working class) have fumed about what they see as a “hollowing out” of America. On the opposite side of the spectrum, John Kerry, pandering to labor unions, a key constituency of the Democratic Party, chastised “Benedict Arnold” corporations for “sending jobs” offshore, in spite of his sterling Senate voting record in support of free trade. A host of grassroots anti-outsourcing movements have also sprouted across the United States. Some of these movements are simply opportunistic. For instance, one Milwaukee-based advertising firm, perhaps sniffing a commercial opportunity, recently launched a “certification” process aimed at declaring selected corporations as free from the apparently heinous sin of “doing business overseas.” Some media outlets have also been awash with similarly charged rhetoric: Most notably, the ominous host of CNN’s “Tonight with Lou Dobbs” “exposes” American corporations who “send jobs to cheap overseas labor markets.”
The cacophony of anti-outsourcing rhetoric and movements might seem quite overwhelming and confusing for most Indians - and not a trifle hypocritical, given its origins in the world’s foremost champion of free trade and globalization. However, despite the natural unease that many in India might feel over U.S. opponents of outsourcing, it is helpful for Indians to keep in mind similar rhetoric of the past, which targeted Japan in the 1980s, and the firmness of America’s longstanding commitment to free trade.
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19 Comments Add your own
1. Kelly | June 4th, 2005 at 8:56 pm
I am very ANTI outsourcing. You see I am out of fulltime employment and have sent numerous resumes with no response. I have some little part time job that pays barely over min wage…so much for my expensive BS in Computer Science. I guess that is just what that degree is BS!
2. india lover | June 14th, 2005 at 11:31 am
anyone who critisizes outsourcing is purely jealous. americans cant digest the fact the a poor country like india is managing to take away thier jobs. the fact is unlike americans, indians are brain-rich and not cash-rich. this explains the number of indians in almost all key americam institutions right from silicon valley to NASA. i mean, what is wrong with u guys? look at the number of MNC giants that make up the fortune 500 companies. if the pool in together each american will land up with at least 5 jobs in his kitty!!
and yet u end up crying foul. but look at the condition in india. almost 50%of indians dont have enough to eat. if under such circumstances, what is wrong if they take-up a few excess american jobs?
and yet if americans complain about outsourcing, it simply means that they do not know how to look out for a job!!
3. Pro-Outsourcing | July 12th, 2005 at 4:19 pm
I think that Americans who complain about outsourcing of jobs are the biggest hypocrites in the world. The U.S. prides itself on being a competitive marketplace that is second to none in the world. The reason the U.S. has become such a powerful economic force is through cut-throat competitive tactics and emphasizing adaptation to constantly changing economic environments. The reason other countries are not in the position of the U.S. is because we emphasize these values in our own country and attempt to spread them around the world. NOW!!! When 3rd world countries are able to compete for jobs, lazy Americans cry foul, because they are not able to adapt to new economic environments. This anti-outsourcing movement is completely UnAmerican. If we had this attitude as a country during WW 2, Hitler would have succeeded in making the world a very different place. I say instead of crying about a few lost jobs, gain more knowledge, learn more skills in an area where jobs are plentiful. The simple fact is that Americans are like spoiled babies who don’t want to give up there bottle and this is the perception of the American worker. The reality is that the perception of the individual worker who loses his/her job does not match up with the reality of a global economy. In fact, out-sourcing has proved to be a good thing for the American economy as a whole. Just because you lost your job to outsourcing does not mean the whole economy is going down. In fact, outsourcing allows American companies to be more competitive and pass that cost savings to it’s customers. With more money to go around more jobs are created in other segments of society. Instead of whining and forcing state legislatures to pass unconstitutional laws against outsourcing, I think the American people need to look to the big picture. Anti-outsourcing legislation is like blocking a big volcano. Sooner or later it is going to break under the pressure of the emerging world economy. Americans need to shut their mouth and start adapting, or they will be left behind in a globally competitive economy.
4. Joe User | July 12th, 2005 at 4:58 pm
It’s good to see people who are getting the jobs being so optimistic about capitalism. If some class of citiznes are losing their jobs because of cheaper labor overseas, it’s hard to say that they shouldn’t complain about it. Anyone would complain if you lost your job just because of cheaper labor, not because of the quality of work. The fact that this is an acceptable practice, mismanagement of employees, is just plain wrong. For the companies that cannot properly forcast employment properly so they have to bail themselves out by hiring cheaper labor is crazy. But hey, the Indians will see how American corporations really treat employees. In fact employment practices in America are one of the worst in the world. We don’t get “deals” that say if you lay us off, you have to pay 2 years of pay. We might get 2 weeks of pay if we are lucky. We barely get 10 days of vacation a year, if you are allowed to take it. And someone argued that 50% of indians barely have enough to eat. That has nothing to do with outsourcing. There are many countries all over the world that have this problem, in fact right here in America too.
So basically, it’s more of Americans being upset at poorly run companies that suck the life out of you to just outsource your job even though you dedicated your life to them. And complaining about outsourcing is just an outlet that seems to have more pull then complaining about the Enrons that seem to fix nothing.
I would agree that outsourcing is fine. But when American companies take advantage of Countries and side step American work practices so then can have cheaper labor is hypocrytical and unethical. And don’t give me that BS that companies dont have to be ethical, they just have to follow the law. People run companies, people are supposed to be ethical here in America.
5. till | August 20th, 2005 at 6:54 pm
@Kelly: Sad to hear this, but with globalization, outsourcing is just one of its side effects. Just one. So if you are effected, try to go freelance while you are looking for employment.
A lot of people still want people within their reach, they don’t care for a web developer who is 10,000 miles away and not reliable. They want someone they can call during the day, someone who comes in and talks to them. Not someone on skype or some other IM.
I had my share of outsourcing already. Had to work with people from India on a client-project, and I also made the mistake to work with some myself. It always costs money and the quality is beyond lousy.
6. india lover | September 6th, 2005 at 7:39 am
quality in india beyond lousy???? now thats lousy!!
no american company is nuts enough to outsource jobs without proper enquiry. it is a proven fact that some of the best IT professionals in the world are indians and working in india.
infact the silicon chip was co-invented by an indian.
giants like IBM and GE Tech. often look to professional in india for trouble-shooting.
look at the IT boom in india with MNCs like Veritas, microsoft, google, intel, IBM etc all opening R&D centres in india. if these companies are so stupid that they are coming to “lousy” india,
they would not have been where they are today.all this happens only after thoruogh research.
and all that noise about “inferior quality of indians” is a clear case of grapes being sour.
please come up with live cases to justify your stand instead of trying to blow a horn without having one!!!
7. sadashiv | February 25th, 2006 at 9:04 am
truly speaking indians hv n’vr managed 2 put their feet as far as originailty is concerned.
no1 copy-cats and modifiers as far as writing soft-ware is concerned.
8. America has the brains | February 26th, 2006 at 11:24 am
I am appalled at the lack of thankfulness that the Indian people show to the Americans. We let them into our country, we give them jobs and an education and housing and then they slam us with such comments. My husband has worked for his company for 21 years. There is an Indian their who works in engineering. He took my husbands great idea and said it was his. He never gave any credit to my husband. It was my husbands brain not the Indians. If Indians are so brain rich then why can’t they take care the problems at home. Why can’t they take care of the econimic and social problems in their own country. If you want to be unthankful then go back to your own country. If it’s so great then go their and stop bashing our country.
9. JohnR. | March 5th, 2006 at 2:03 pm
What a bunch of lampoons. Outsourcing isn’t only about cheap labor resources. If you think that what is all about you don’t know enough about stock markets to fill a thimble.
I will explain it to you in the simplest terms.
1. American parent company starts a “subsidiary” in India trains and creates labor market in area where is did not exist.
2. American parent company makes public (sells) 50% of stock of subsidiary and keeps rest in it’s own portfolios.
3. American parent company initiates a buy back program for stock it doesn’t own above maket value.
4. American paretn company annouces layoffs of American workers and outsources to it wholly own subsidiary and watchs the subsidiaries market value sky rocket.
Conclusion: The American worker and the Indian worker are suckers.
10. this isn't america | March 30th, 2006 at 1:14 pm
I have lost 5 jobs due to outsourcing to other countries. It may not be so bad if they would quit letting people from other countries come over here as minorities and take what jobs are left. The American can’t find a job these days. All the good jobs go to other countries and what doesn’t leave we bring aliens over here to work. Maybe we do need a war over here, Or atleast a government that will look out for the American people and chase all aliens out and make american companies come back
11. Ashish | April 9th, 2006 at 8:35 am
Lot is said about outsourcing of jobs from US(&UK) to mainly India and other countries. They think their jobs are coming to us we are srealing their jobs,We don’t worth it blah,blah,@@and and the Americans don’t make any efforts to hide their feelings and express them in choicest of words (We all know !!! what they are!!)
I have been working with one of the most reknowned BPO’s in India for more than an year and I would like to share my views on it and if possible to pass the message to them. Everyday we receive approx. 80-90 calls from US outof that 7-10 callers have problems just because his/her call is attended by an Indian(or a brownie),they just can’t understand why they are answered by us,and either hang the phone up or ask to transfer them to US.still OK but another 5-7 callers are there who as soon as realize their call is attended by someone in India the tone changes from mild to a harsh,authoratative one as if speaking to a slave and slightest of an chance(non availablitity of a product or service) they cut loose and start abusing us,the country and what not. All I want to tell U guys that we haven’t stole your jobs it’s YOUR INABILITY that the jobs are coming to us or else U guy’s would never had outsourced them to us. It’s not only the cost factor but its our INTELLIGENCE,HARDWORK and sincerity that makes your enterpreneurs to outsource to India becuse we are more resonable then U guys.U people can’t remember the simplest of the information ,be it your credit card info, membership password,your home address and what not!! On top of that You confidently call up saying can;t U pull it up with my last name(as if a decendent of George Bush/Hillary Clinton!!)and when it doesn’t happen U start abusing!!It’s sick.A reasearch has shown that the IQ of an average 35 yers old American is similar to that of an average 14 years old Indian!! Now it’s high time U start appreciating about the credential of a person sitting thousands of kilometers away helping U out to make ur life smoother taking pain to learn about ur culture,country and nuisnses of ur language(not to mention about the tech. skills). Instead of appreciating our credit U guys are sulking.It’s high time U change ur attitude or else next time when U say “Idon’t want to speak to a F******Indian I would say Bloke it’s ur destiny.
In the same note I would like to thank the rest(allmost 70%) who appreciate our job.
THANK YOU
12. Joe User | April 24th, 2006 at 4:46 pm
Ashish, First of all, IQ has nothing to do with education. There are plenty of 14 year old americans with higher IQ’s then a 35 year old Indian.
Second, when a worker in India gets laid off, what compensation do they get? Do you think Americans get 1/10 of that? Not even.
Thirdly, you would forget your credit card password too, if you haven’t had a day off of work in 5 years, and worked every holiday.
Fourthly, you will be whining too when your job gets outsourced to the Phillipines.
And finally, we are not mad at you, we are mad at the companies that want to save that extra money by outsourcing. It’s all about the money and how much they can save. Nothing about how hard a worker you are. Look up the word “outsourcing”. It means to cut costs.
13. Nicholas | August 9th, 2006 at 12:58 am
“Outsourcing” is ridiculous. If you can’t afford to run a business with fair wages you shouldn’t be allowed to run that business.
14. Nicholas | August 9th, 2006 at 1:13 am
[quote]In the same note I would like to thank the rest(allmost 70%) who appreciate our job.[/quote]
What 70% of people that support you? You guys think you are being offered a great salary when your u.s. colleagues are being payed 10 times more to do the same job and have a lot more money to survive on. I’ve seen some of the things that happen in India that happen in this craze. E.g. Locking up kids in factories to make money out of them. Offering them only $1 a day that barely gives them enough money to survive off of. Your lives Ashish are being wasted away. You need to think more constructivly to build your economy you are trying to sit in a cradle and piggy back off of big western corporations that only want to rip you off for your skills. As Joe user said. We are not mad at you. We are mad at the companies that want to save that extra money by outsourcing.
15. Brian Calla | October 25th, 2006 at 10:50 am
I have read all these comments. The reason jobs go to india is because its cheap. It has nothing to do brain-power its all about cost saving to the stock holders and CEO politics. Example J&J is sending 140 jobs to india trust me your Johnson & Johnson baby shampoo wont go down in price. They send jobs to India because they can. It’s dirt cheap!!! I am all for open market but american workers can’t work for peanuts to keep up with third world wages.
So what it comes down to is a person in the company shows them numbers and how many millions they save. The stock holders love it. All the while giving the greedy bastards “more money” who have no social or moral responsiblity to the people working in this country. Meanwhile Americans who have worked hard and gone to school get screwed and have a hardtime supporting their families. Not only that to get train your replacement before they cut you how nice!!! If india wants to have jobs they need to create a ecnomony of there own.
16. Brian Calla | October 25th, 2006 at 11:08 am
One other thing.. The solution to this is get higher skills. Sorry they already take those jobs too. They have high skiller works and tell them to train your replacement. Some don’t even come in with basic knowledge and only ran stuff in a test lab and took some tests. That has nothing to do with experience. I am fed up with this. I feel you have one choice just as the auto workers did. Find a new field because IT is dead. Its either docotor lawyer, plumber, roofer or fries at macdonalds. Service jobs!!! Service jobs!!!There is no global econonmy the united states is the econonmy that drives the world not the other way around. We buy everything!! We should have so many jobs and so many different kind of jobs in service and manufacturing. But instead we a slaves to walmarts, Lowes, burger kings and service jobs. Kids in schools need options broad this is america of freedom and choices. Sending high paying skilled jobs to India is crazy and doesn’t give bright futures to anyone living in the US.
17. growup | November 20th, 2006 at 3:43 am
The reality is that most of the world, with a few exceptions, is grabbing aggressively what US had and took for granted.
18. Unhappy | December 18th, 2006 at 3:24 pm
Outsourcing is offensive to Americans who buy what they assume are American products from American companies–until they have a problem with the product or billing, etc. and end up talking to someone in India who barely speaks English. I lived in Austin when Dell began to lay off thousands of employees as it outsourced more and more if its product manufacturing and customer service. Do you want to know why unemployment in this country is over 4%–call customer service for Dell or RealPlayer and ask someone in India who has a job that used to belong to American and is now being paid a quarter of the salary that the ompany would pay an American? With every occurrence of outsourcing I find–I have found another company I will refuse to do business with in the future. Outsourcing needs to be against the law!
19. TheBlandAnarchist | January 31st, 2007 at 8:07 pm
Outsourcing is not just “US versus the world”. It’s affecting Canada and Europe. Everybody talking either as an American or as an Indian. blah blah blah.
Hey people… guess what?? There’s a whole big world out there that global corporations are screwing left, right and center! INCLUDING *INDIANS*. You’re being paid peanuts. You are slaves. You need to know that and understand that. You have money for food on the table now but with the way corporations are getting global and hyper-big, we soon won’t have rights as average human beings.
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