Saturday, June 4, 2011

Outsourcing Player Hater


I was at a dinner party a few years ago and the topic of outsourcing came up. I am the owner of a web development firm and I've been outsourcing since 2003. I have a computer science degree and I used to do the grunt level coding/programming back in the day, but since 2003, I've been working smarter by outsourcing. I design all aspects of the projects that I outsource. I rarely give my coders the latitude to make system architecture decisions.

Anyway, at this dinner party I was heavily criticized by a woman for using technical labor in eastern Europe and Asia. I was told that I am taking away jobs from U.S. based workers. Well, I am a smaller player in a big game. I am only doing what Microsoft, Dell, IBM and every other major tech firm has been doing for decades. In addition, I have U.S. based workers doing customer relations which is extremely valuable.

This female had a nice Italian made purse and some nice shoes which were made in Italy.  Then I asked this female "What kind of car do you drive?".  She refused to tell me but I knew she drove a Lexus which is Japanese. Then I asked to see the tags on her blouse and pants.  She refused but I knew she was wearing Gucci.  I told her "You're sending more loot overseas than I ever have.  So, before you even think about checking me on sending U.S. jobs overseas, you need to check yourself!"

I compensate my U.S. workers with big dollars, thus they are making a lot of money.

In addition, I would like to quote myself: "Anything goes, when it comes to code, cyber pimpin ain't easy!"
Eric Hamilton 2011

So what do you think?

9 comments:

Lindsay said...

Eric I think those that criticize you are short sited and dont posses a global mindset. You outsourcing has allowed your business to be successful so that you can employ American workers and give them competitive compensation. Im curious to know if your hater was a business owner who when faced with the same challenge hired domestic? Probably not.

EHAM said...

Thanks Lindsay...
That hater was a far left liberal who worked in the public sector. She's never owned a business. Thanks for the comment...

jvin248 said...

There's an economics concept that system wealth is maximized through trading. Artificial price controls like the arbitrary 'no outsourcing' rule makes the business uncompetitive over time and then society has a net loss.

Now the interesting thing is to figure out 'why' a country being sourced to is so inexpensive? Often at root it's the taxes levied on that nation. From income to sales to import/export duties to property taxes. High taxes causes high living expenses that makes a country uncompetitive - and society looses again. Worker productivity and technical innovation can offset some of the increased tax cost effects but it only delays the problem.

So rather that argue against 'outsourcing'; the better argument should be how to lower system taxes and make a more efficient government.

EHAM said...

Jvin248... Great points... Thanks for commenting...

Imani said...

If this particular player hater was the least bit savvy as it pertains to globalization, she would realize there are pros and cons to outsourcing. You brought up a significant point regarding Microsoft, Dell, and IBM, as they have outsourced for years and have become extremely successful. There's nothing wrong w/ trying to get a slice of the pie, or the entire pie! Keep up the good work friend.

EHAM said...

Imani...
Wow!
That's twice in the same week that we've agreed... I AM SHOCKED!
Thanks for the kind words friend...

EHAM said...

"Anything goes, when it comes to code, cyber pimpin ain't easy!" Eric Hamilton 2011

Brightneveryway said...

I am torn on this one. In this economy, there are Americans who need to have a job like that. There has been a backlash on non American call centers and some companies are employing people to complete calls from their homes.

You are correct that the "big boys" are doing it too. With that being said, they are now reversing their course.

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