Friday, July 29, 2005

Competitiveness alert!

The current issue of Fortune magazine has a detailed article on whether America can compete against emerging economic powers like China and India.

It mentions that many American computer programmers paid an annual salary of $100,000 are being fired because their jobs can be done at one fifth the price by Indians or Chinese.

It also reports the McKinsey Global Institute as saying that 52% of engineering jobs in America are amenable to outsourcing, as are 9.6 million service jobs (in accounting, insurance, call centers, etc.).

Finally, it points to the fact that many offshored jobs are gaining in value, such as bond analyst jobs that could cause a company to make or lose millions of dollars, or next-generation chip design and development jobs at Texas Instruments being offshored to India.