Comments on: How Big a Problem is Outsourcing? http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html This is China Fri, 25 Jul 2008 05:42:02 +0000 http://wordpress.org/?v=2.5.1 By: nanheyangrouchuan http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-997 nanheyangrouchuan Thu, 27 Mar 2008 23:35:45 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-997 GM, other than Cadillac, is getting its head handed to it by Toyota and Honda despite GM cars being cheaper than their Japanese competitors. It has to do with quality and what people are willing to pay when they know what they are getting. Outsourcing low end jobs is not a problem, outsourcing advanced manufacturing jobs erodes the capabilities of the outsourcing nation and also helps improve the military capability of the nations receiving advanced manufacturing abilities. GM, other than Cadillac, is getting its head handed to it by Toyota and Honda despite GM cars being cheaper than their Japanese competitors. It has to do with quality and what people are willing to pay when they know what they are getting.

Outsourcing low end jobs is not a problem, outsourcing advanced manufacturing jobs erodes the capabilities of the outsourcing nation and also helps improve the military capability of the nations receiving advanced manufacturing abilities.

]]> By: Larry http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-994 Larry Thu, 27 Mar 2008 17:16:52 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-994 Outsourcing is going to be the norm, and will eventually beneficial to everyone, if every country complies with free trade rules instead of finding ways to get around them. And it also need internationally tradable currency in every country involved in the in/out sourcing. This way, eventually, the cost of outsourcing and insourcing would be balanced. However the cost of energy is rising quickly, increasing the cost of logistics, and hence the cost of outsourcing. So, the real winner in all of these are the owners of resources, especially, those in shortage. Outsourcing is going to be the norm, and will eventually beneficial to everyone, if every country complies with free trade rules instead of finding ways to get around them. And it also need internationally tradable currency in every country involved in the in/out sourcing. This way, eventually, the cost of outsourcing and insourcing would be balanced. However the cost of energy is rising quickly, increasing the cost of logistics, and hence the cost of outsourcing. So, the real winner in all of these are the owners of resources, especially, those in shortage.

]]> By: Larry http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-993 Larry Thu, 27 Mar 2008 17:16:22 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-993 Outsourcing is going to be the norm, and will eventually beneficial to everyone, if every country complies with free trade rules instead of finding ways to get around them. And it also need internationally tradable currency in every country involved in the in/out sourcing. This way, eventually, the cost of outsourcing and insourcing would be ballanced. However the cost of energy is rising quickly, increasing the cost of logistics, and hence the cost of outsourcing. So, the real winner in all of these are the owners of resources, especially, those in shortage. Outsourcing is going to be the norm, and will eventually beneficial to everyone, if every country complies with free trade rules instead of finding ways to get around them. And it also need internationally tradable currency in every country involved in the in/out sourcing. This way, eventually, the cost of outsourcing and insourcing would be ballanced. However the cost of energy is rising quickly, increasing the cost of logistics, and hence the cost of outsourcing. So, the real winner in all of these are the owners of resources, especially, those in shortage.

]]> By: Yuefei http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-992 Yuefei Thu, 27 Mar 2008 13:51:13 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-992 Chinese companies outsourcing to China becoming the norm? There is a newly-opened, large, Chinese manufacturing company here in the U.S. They have outsourced their advertising and information technology needs back to China; the IT is understandable, but the advertising? In addition, there staff is almost entirely from Hunan province, where the company's headquarters is located, except for eight sales people. Interestingly, on the day I arrived for my interview, building management in the lobby of the office tower called up to the company to confirm the company was expecting me. To my dismay, the company secretary didn't understand. Finally after 10 minutes, it was confirmed that I had a valid appointment with the President. Perhaps they could improve their front desk by outsourcing to the local community. Chinese companies outsourcing to China becoming the norm?

There is a newly-opened, large, Chinese manufacturing company here in the U.S. They have outsourced their advertising and information technology needs back to China; the IT is understandable, but the advertising? In addition, there staff is almost entirely from Hunan province, where the company’s headquarters is located, except for eight sales people.

Interestingly, on the day I arrived for my interview, building management in the lobby of the office tower called up to the company to confirm the company was expecting me. To my dismay, the company secretary didn’t understand. Finally after 10 minutes, it was confirmed that I had a valid appointment with the President. Perhaps they could improve their front desk by outsourcing to the local community.

]]> By: theotherrichard http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-991 theotherrichard Thu, 27 Mar 2008 10:36:57 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-991 Why is the assumption that outsourcing is a problem? For me outsourcing is great... it means that US products, dollar notwithstanding, are cheaper and that globalisation and fee markets are - very, very slowly - making the world a more equitable place. Plainly put, I think that the work should be spread around. There is a problem, for the countries that do the outsourcing, if they fail to fairly distribute the benefits of doing so to their own citizens and also do not invest in the infrastructure, education etc that got them to be outsourcing their work in the first place. There is also a problem for the countries being outsourced to if they can take on the work as they are subjecting workers or the environment to abuses that would not not be permitted or tolerated in the country outsourcing the work. The question as put, though, intrigues me; I am pretty sure that Bengali call center and Shanghai auto workers do not think to themselves: 'How big a problem is outsourcing?' Why is the assumption that outsourcing is a problem? For me outsourcing is great… it means that US products, dollar notwithstanding, are cheaper and that globalisation and fee markets are - very, very slowly - making the world a more equitable place. Plainly put, I think that the work should be spread around. There is a problem, for the countries that do the outsourcing, if they fail to fairly distribute the benefits of doing so to their own citizens and also do not invest in the infrastructure, education etc that got them to be outsourcing their work in the first place. There is also a problem for the countries being outsourced to if they can take on the work as they are subjecting workers or the environment to abuses that would not not be permitted or tolerated in the country outsourcing the work. The question as put, though, intrigues me; I am pretty sure that Bengali call center and Shanghai auto workers do not think to themselves: ‘How big a problem is outsourcing?’

]]> By: Matthew Stinson http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-989 Matthew Stinson Thu, 27 Mar 2008 04:13:27 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-989 <em>Couldn’t they have found an American. </em> Yeah, they could've just quoted Barack "Outsourcing is the Devil" Obama. Anyways, let's play spot the irony in this story: a CANADIAN union is angry that an AMERICAN automobile company is using parts made in ASIA instead of in CANADA. "Damn Yanks ought to give all their jobs to us instead of them." One of the things that isn't mentioned in the article is that some of the joint venture moves are to keep the Chinese companies honest. Chrysler partnered up with Chery because Chery arguably already stole the Chrysler Smart Car design for its QQ. By bringing Chery onboard as a partner, Chrysler gets to share some profits that would otherwise be lost to a cheaper Chinese competitor. Couldn’t they have found an American.

Yeah, they could’ve just quoted Barack “Outsourcing is the Devil” Obama.

Anyways, let’s play spot the irony in this story: a CANADIAN union is angry that an AMERICAN automobile company is using parts made in ASIA instead of in CANADA. “Damn Yanks ought to give all their jobs to us instead of them.”

One of the things that isn’t mentioned in the article is that some of the joint venture moves are to keep the Chinese companies honest. Chrysler partnered up with Chery because Chery arguably already stole the Chrysler Smart Car design for its QQ. By bringing Chery onboard as a partner, Chrysler gets to share some profits that would otherwise be lost to a cheaper Chinese competitor.

]]> By: Pappi http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-988 Pappi Thu, 27 Mar 2008 03:17:51 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-988 Why did a Times story about outsourcing from the US quote a Canadian union boss? Couldn't they have found an American. Maybe the rep in Shanghai. Why did a Times story about outsourcing from the US quote a Canadian union boss? Couldn’t they have found an American. Maybe the rep in Shanghai.

]]> By: John Guise http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-987 John Guise Thu, 27 Mar 2008 01:16:32 +0000 http://cupofcha.com/2008/03/27/how-big-a-problem-is-outsourcing.html#comment-987 Basil -- better known to Canadians as Buzz -- Hargrove has taken some pretty progressive stances with his union before such as being okay with the right to strike. But he goes and destroys that by going completely against outsourcing -- he seems to be trying imply it's a safety issue but I'm not biting. I'd like to see him advocate retraining to get union members into more technical or service jobs, not spending so much time trying to stop the flow of low-paying assembly jobs to China. J. Basil — better known to Canadians as Buzz — Hargrove has taken some pretty progressive stances with his union before such as being okay with the right to strike. But he goes and destroys that by going completely against outsourcing — he seems to be trying imply it’s a safety issue but I’m not biting. I’d like to see him advocate retraining to get union members into more technical or service jobs, not spending so much time trying to stop the flow of low-paying assembly jobs to China.

J.

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