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Outsourcing is a Political Hot Potato

December 27, 2007

Over the last several years, corporate business has been steadily eroding the United States income and tax base by sending jobs overseas to countries like Chinadeloitteadmin.jpg and India. Job outsourcing hasn’t been limited to manufacturing jobs. More and more, administrative and managerial positions are being outsourced in large multinational companies such as IBM and Deloitte Touche. For example, Deloitte Touche has been quietly and steadily moving administrative and managerial positions from their global administration center in Hermitage, Tennessee (the U.S. mecca of low wages) to a branch recently established in India.

“The United States must begin planning for the outsourcing of nearly 40 million domestic jobs in the next 30 years through aggressive training programs and education reforms.” Alan Economist Alan BinderBlinder, the former vice chairman of the Board of Governors of the Federal Reserve System, spoke to labor economists and workforce development professionals at a recent symposium “Strategies for Improving Economic Mobility of Workers” on November 16. Blinder said this “offshoring” of more than a quarter of the current 140 million jobs in the United States economy will be the most important issue in politics and economics for the next generation. Blinder, currently a professor at Princeton, claimed that to make massive outsourcing less painful, an improved social safety net is necessary.

Conservative estimates suggest that at least 22 percent of all U.S. jobs could be moved to other countries at some time in the near future, cutting across a much wider spectrum of industries, professional skills and income categories including highly educated and paid workers. Outsourcing is being established as a fact of life and little, if anything, is being done to stem the flow of jobs from the United States economy. The government has closed their eyes to the situation in the most passive way. Union leaders and union publications show little concern as the global economy competes for jobs in a race to the bottom. There is not a plan to challenge multinational corporations that move U.S. jobs where labor costs and regulations are a lot less expensive. Apparently, job outsourcing has become a political hot potato that is too hot to handle. Instead, government and labor focus on international trade agreements as a panacea to turn the economy in the United States around.

The global economy has become dominated and exploited by the multinational business elite and even the sovereignty of nations is at risk as the corporate oligarchy makes decisions about labor and where those jobs will be to suit their advantage. Multinational corporations, including the multinational banking system, have the power to make and break nations. The United States, with the prospect of diminished productivity and more limited cash flow is in real danger of surviving the attack on its workforce as a whole country. The risk is that the United States will lose its vitality and become like a third-world country as jobs continue to be exported at an alarming rate. ~ E. Manning

Find out more about job offshoring today at TNTalk!

blossoms hide the truth

blossoms hide the truth at Deloitte Shared Services Global Headquarters

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4 Comments leave one →
  1. March 20, 2008 9:17 pm

    Lovin’ the blog. Much more PC than mine but hey whatever works ;)

  2. Nils permalink
    March 17, 2008 8:48 am

    I am very concerned with the topic of off-shoring U.S. jobs and I am trying to get to the core of off-shoring high-skilled jobs. Information, however, is rare. Can you post or send me the source for Deloitte-Touche’s and IBM’s off-shoring of managerial/administrative positions to India. I ‘d really appreciate it as I am working on my thesis and need to convince others that there is something to management-off-shoring. Thanks a lot.

    Thanks for your interest. I am the personal source of much of this information as a former corporate insider. Corporate America wishes to keep their outsourcing a closely-held secret. ~E.M.

  3. Stephan permalink
    December 27, 2007 4:15 pm

    To be honest, I think business outsourcing jobs (if they can do it profitably) should be supported, because there’s nothing about people in your own country that make their jobs more valuable than the jobs of those people overseas.

    If it’s a worry about poorer service/quality, let businesses sort that out for themselves, surely if things go badly they’ll realise that outsourcing was a bad idea. If things go well, they’ll save money and the consumers will benefit from increased competition in the market.

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