Re: Will Price of Delphi and other Tools collapse?

"Michael Justin" <michael.justin@xxxxxxxxxxxxxx> wrote in message news:4829eb3a$1@xxxxxxxxxxxxxxxxxxxxxxxxx
Uffe Kousgaard wrote:

If we had not out-sourced during the past 30 years or so, we would all be much poorer today.

"we" = "The upper management" ?

If a company saves money by outsourcing, that money can be spent on other things, like more employees in higher bracket jobs (requirements, architecture, managing the outsourced projects), or accelerated development of new features, etc. The amount that might go into things like bonuses to execs is a trivial percentage for most companies (especially private companies).

The fear of losing jobs to outsourcing is based on the same ideas as most have about new technology making many jobs obsolete. It does cause job displacement, but what many miss is that it also creates opportunities for new jobs in many other areas and often in entirely new job types. An easy example is that computers have obsoleted vast numbers of clerical jobs, however in return, at least as many people have been able to become programmers at rates much higher than those clerical jobs ever paid. So in the long run, outsourcing increases the local standard of livng.

--
Wayne Niddery - TeamB (www.teamb.com)
Winwright, Inc. (www.winwright.ca)

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