Oh, No! My Employer Has Decided To Outsource This Column To India!

It's one reason I don't believe this current fear of outsourcing will leave us all performing menial jobs while raising the standard of living in China and India.

That's not to say this trend isn't going to force some very real changes in our job market. I just don't believe it will render us destitute, with our children living in a dust bowl.

In the 1970s, the energy crisis had many in this country believing that the oil barons of the Middle East were going to be so flush with cash they would literally buy up most of the United States and own our economy.

In the late 1970s, this was replaced by a fear that the Japanese economic model would bury us. The Japanese invented just-in-time manufacturing and quality controls that many feared would rip the very soul out of U.S. economic vitality. Again, disaster failed to materialize. Then, in the early 1980s, Korea was going to do Japan and us in. What happened to that prognostication?

To be sure, throughout the past 35 years there has been an enormous shift of certain jobs overseas. The vast majority of high-tech equipment is already built by contract manufacturers in Taiwan, Singapore and elsewhere. The current offshore outsourcing situation isn't just affecting one industry, however. Because of the Internet, it is happening everywhere.

Fact is, any job that is not customer-facing and can be digitized has the potential to be outsourced.

Massachusetts General Hospital, one of the best medical complexes in the world, is outsourcing some basic reading of x-rays. In the end, the customer is in Massachusetts, and the doctor responsible for treatment needs to be there as well. Will the outsourcing of some basic radiology services drive the cost of medical care down, however? I sure hope so.

Reuters New Service recently announced it would outsource to India the writing of basic earnings report stories on some 300 companies. That could be efficient, but more enterprising stories that don't come from announcements require reporters to have sources and perspective. In order to develop both, you have to talk to people face-to-face.

We are going to see more jobs outsourced, whether it's to India, China or other areas outside Silicon Valley. Does the accountant you talk to a few times a year really need to be in the same town as you? You could envision a few top-tier accountants meeting with customers and offering consulting services, while the spreadsheet grunt work is outsourced,resulting in higher profit but lower prices.

For solution providers, there will certainly be changes as a result of outsourcing. The need to outsource some application development overseas to stay competitive will be real; however, there may also be an opportunity to provide that as a managed service. But the upfront consulting work and management will still need to be done close to the customer.

Let's face it, nobody, including you, ever says they want to pay the highest possible price for a good or service. If outsourcing drives the price of a product down and keeps the customer happy, then it is going to happen.

Ultimately, this entire issue will work itself out. OPEC, Japan and Korea didn't ruin the U.S. economy, so what makes you think India or China will?

There is only one thing that could change our standard of living for the worse, and that's if we do not continually improve our education system. If that goes sour, all bets are off.

Make something happen. I can be reached at (516) 562-7812 or via e-mail at [email protected].