Comments on: Offshore Backlash Redux http://6ampacific.com/2007/03/31/offshore-backlash-redux/ Meandering Musings on Globalization Wed, 09 May 2012 17:39:30 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Prashant http://6ampacific.com/2007/03/31/offshore-backlash-redux/comment-page-1/#comment-5857 Prashant Tue, 03 Apr 2007 16:07:31 +0000 http://6ampacific.com/2007/03/31/offshore-backlash-redux/#comment-5857 To follow up on comment #5... check out the discussion on Greg Mankiw's blog or on EconLog/ Marginal Revolution, and you'll get a fuller pix than reading DeLong's stuff... To follow up on comment #5… check out the discussion on Greg Mankiw’s blog or on EconLog/ Marginal Revolution, and you’ll get a fuller pix than reading DeLong’s stuff…

]]> By: Prashant http://6ampacific.com/2007/03/31/offshore-backlash-redux/comment-page-1/#comment-5856 Prashant Tue, 03 Apr 2007 13:36:10 +0000 http://6ampacific.com/2007/03/31/offshore-backlash-redux/#comment-5856 There's a few things going on here -- Blinder's primary concern seems to be the costs of dislocation, based on a simplistic extrapolation and the BLS numbers of "potentially" offshorable jobs. He's way off... For example: India's total employment in IT/ BPO after 10 yrs of blistering growth is about 1.2 mm of which 70% is focused on the US ie, 840K (approx). In a total labor force of 140 mm, that's nothing. Similarly, India's exports to the US (IT + BPO) is approx $15 billion to $17 billion. Given that the US GDP is north of $12.5 trillion, India isn't even a rounding error. Blinder is using anecdotes rather than facts -- what sort of economist does that? While the offshoring brouhaha may resurface, it'll be far less muted than last time... I've always averred that it was much ado about nothing... see an earlier post here.. http://indianeconomy.org/2005/07/16/much-ado-about-nothing/ There’s a few things going on here — Blinder’s primary concern seems to be the costs of dislocation, based on a simplistic extrapolation and the BLS numbers of “potentially” offshorable jobs. He’s way off… For example: India’s total employment in IT/ BPO after 10 yrs of blistering growth is about 1.2 mm of which 70% is focused on the US ie, 840K (approx). In a total labor force of 140 mm, that’s nothing. Similarly, India’s exports to the US (IT + BPO) is approx $15 billion to $17 billion. Given that the US GDP is north of $12.5 trillion, India isn’t even a rounding error.

Blinder is using anecdotes rather than facts — what sort of economist does that?

While the offshoring brouhaha may resurface, it’ll be far less muted than last time…

I’ve always averred that it was much ado about nothing… see an earlier post here..
http://indianeconomy.org/2005/07/16/much-ado-about-nothing/

]]> By: Krishna http://6ampacific.com/2007/03/31/offshore-backlash-redux/comment-page-1/#comment-5838 Krishna Mon, 02 Apr 2007 15:58:08 +0000 http://6ampacific.com/2007/03/31/offshore-backlash-redux/#comment-5838 When US companies get competitive without utilizing offshore processes, this issue will automatically die down. Till then the ball will be in play between the Reps and Dems. When US companies get competitive without utilizing offshore processes, this issue will automatically die down. Till then the ball will be in play between the Reps and Dems.

]]> By: Basab http://6ampacific.com/2007/03/31/offshore-backlash-redux/comment-page-1/#comment-5837 Basab Mon, 02 Apr 2007 14:42:17 +0000 http://6ampacific.com/2007/03/31/offshore-backlash-redux/#comment-5837 Shefaly, two reasons - one that the volume on offshore backlash still isn't high. second, that most IT Services companies will prefer to remain quiet on this and let umbrella organizations like NASSCOM and ITAA do the talking. More credible that way. Shefaly, two reasons – one that the volume on offshore backlash still isn’t high. second, that most IT Services companies will prefer to remain quiet on this and let umbrella organizations like NASSCOM and ITAA do the talking. More credible that way.

]]> By: Shefaly http://6ampacific.com/2007/03/31/offshore-backlash-redux/comment-page-1/#comment-5831 Shefaly Mon, 02 Apr 2007 09:57:43 +0000 http://6ampacific.com/2007/03/31/offshore-backlash-redux/#comment-5831 Extraordinary to think that none of your readers, a large number of whom might be affected by this, has anything to say about the matter. Does silence mean that they expect this backlash? Or does that mean they accept it will happen but know it may not change things much? Or does that mean they do not care about it? Extraordinary to think that none of your readers, a large number of whom might be affected by this, has anything to say about the matter. Does silence mean that they expect this backlash? Or does that mean they accept it will happen but know it may not change things much? Or does that mean they do not care about it?

]]> By: Mohan http://6ampacific.com/2007/03/31/offshore-backlash-redux/comment-page-1/#comment-5822 Mohan Sun, 01 Apr 2007 15:27:32 +0000 http://6ampacific.com/2007/03/31/offshore-backlash-redux/#comment-5822 Great point Basab, I will not claim to be an expert on globalization or economic theory or even free trade. However, jobs being generated in India (and rest of the 'Third World') is a good thing. Now, the bigger question to economists like Mr. Blinder: Is the ‘global job pie’ remain static or will it grow due to free-trade and globalization? If the sum total is going to grow, it is a “win win” deal; right? Great point Basab,
I will not claim to be an expert on globalization or economic theory or even free trade. However, jobs being generated in India (and rest of the ‘Third World’) is a good thing.

Now, the bigger question to economists like Mr. Blinder: Is the ‘global job pie’ remain static or will it grow due to free-trade and globalization? If the sum total is going to grow, it is a “win win” deal; right?

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