Visit Your Local PBS Station PBS Home PBS Home Programs A-Z TV Schedules Watch Video Donate Shop PBS Search PBS
I, Cringely - The Survival of the Nerdiest with Robert X. Cringely
Search I,Cringely:

Predictions
BOB Predictions TRIBE Predictions
BOB Predictions
< Previous | Next >     View All 2007
#14
OUTCOME: No Way!

Outsourcing, offshoring on the outs

Status: [CLOSED] comments (56) | confidence poll
Remember outsourcing and offshoring? That tide turns for a bunch of reasons but mainly because a new class of CEOs will say the old class of CEOs was filled with idiots.
UPDATES
[an error occurred while processing this directive]

Comments from the Tribe

Status: [CLOSED] read all comments (56) |

I hate the fact you call a bank and the call is in another country. Outsourcing is a good thing for some things but not call centres. Have you heard all the fraud coming from india?

Wedding Photographer Essex | Nov 11, 2007 | 8:55AM

Wow! Cringly you need some help in the comments. They are being taken over by bots. Let this go on for long and no one will be coming to this site. Good luck

dibert dogbert | Dec 17, 2007 | 12:11AM

I think the recent problems with China's products are a reason why off-shoring production of any sort not just code is going to wind up being a failed economic experiment, its really a rehash of colony/imperialization on a corporate scale. I agree with James 4.sep.2007 and add these points of the invisible hand that "break" with outsourcing. 1) Collapse of Internal Corporate Governance due to International inbalance of legal enforcement a) honors, promotions, firing and internal censure do not work effectively anymore if anyone can be replaced at anytime b) internal regulations & audits are not able to be enforced equally across all nations therefore are irrelivant c) external audits are not to be trusted as they are not able to be enforced equally across all nations are irrelivant b) simple legal proceedings for poor quality, injury, death claims are unenforcable or paid by insurance. When was the last time you heard about a CEO who was indicted and served time? Now how about a High/Mid level manager in a foriegn country? 2) Collapse of Shareholder and consumer confidence due to #1 The Chinese lead painted toys and poisoned toothpaste is just the tip of the iceburg. 3) The flight of taxation inflow will cause local governments to shrivel while local demand for services increases in 1-2ish world nations causing a a danger to stall or shutdown the local government if they are in a "one company" city. a) the production center is no longer causing local taxes to flow in - its no longer there! b) any taxes go to the outsource location but they sold their hertiage for lentles via the rebates, tax exemptions offered to get the business b) the executive "centers" are not causing taxes to flow in - executives work to ensure rebates, exemptions, do all the politiking needed to get out of taxes and simply execs know how to shelter their incomes AND know how to demand more services out of the local government every year for their local area. 4) Erosion of the polity of peoples & nations to their own locality and increased corporate sucking-up as you can't influence the corporate leadership anymore by the well known and tested tactics of a) internal politics b) ascendency of good persons brought up within the company who will reform it c) external politics & legislation having any leverage over a company in the way it used to d) no company survives with the ranks full of yes-men who suck up to the corporate bosses out of fear to lose their jobs. 5) Since the corporate officers are no longer near the production centers the use of these are diminished a) strikes and slowdowns b) actual physical civil confrontation with them at the store, church, civic event, etc... c) "Their" children never interact with "our children" and thus never see the damage their parents as corporate leaders have wrought. Lastly I focus on the fact that many of the countries targeted as "the" places to colonize for outsource operations are ranked very high for bribery, graft, and corruption -- not such a great corporate policy -build the factory in the bad end of the world! http://en.wikipedia.org/wiki/Corruption_Perceptions_Index http://www.globalintegrity.org/?gclid=CI-U0-f2y5ACFSYTIgoduyQtXg

turtleshadow | Dec 28, 2007 | 4:47PM