Ya Think?

Just another Liberal Political weblog

Take heed of this and mind your future

Found this article on the AP today.  Comments to follow.

 Pressure builds on U.S. business to outsource: study

Tue Oct 31, 4:55 PM ET Pressure on the U.S. labor market from the outsourcing of traditionally white-collar jobs is just starting to build, according to a new study.

 Fortune 500 companies could potentially save $58 billion annually, or some $116 million per company, by offshoring general and administrative jobs, according to the Hackett Group, a strategic advisory firm.

 Hackett will formally issue the study next week.

 The study estimates that increased use of cheaper overseas labor could affect up to 1.47 million back-office jobs, or nearly 3,000 at a typical Fortune 500 company.

 Some of the job functions that can now more readily be shipped overseas than they could several years ago include IT, finance, human resources and procurement, the group said.

 “Over the past few years, the resources available offshore have matured to an extent no one could have imagined, creating a paradigm shift that companies can ignore only at their peril,” said Julio Ramirez, Hackett managing director.

The education base and skill set, and with it the potential savings on labor costs, is on the rise in India, China, the Philippines, Pakistan, Eastern Europe, Brazil and other emerging countries, the Hackett study contends.

Many companies are relying on outdated analysis to assess the benefits of outsourcing, and risk “under-scoping” such initiatives, Hackett said.

But once they get up to speed, it could be “Katie bar the (office) door.”

 Hackett is a division of Answerthink Inc. (Nasdaq:ANSR – news), a business and technology consulting firm.

This will hurt not just employment, it will hurt our economy.  These studies seem to stop at the savings for the Corporations but do not show how the loss of this many jobs, here, will effect our economy. Let’s face it…if people in the US can’t find good jobs, who will be able to afford the goods and services these corporations sell. And who will be able to afford to buy stock in these corporations.

Penny wise and pound foolish!

Time to put limits on these corporations and turn “free” trade into “FAIR” trade.

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November 1, 2006 - Posted by | Current News, Economy

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