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Offshoring

The congressional offshoring flap is disappointing to watch.  The reason this is such an issue is protectionism.   E M E R G I C . o r g points to News.com 4-part series on offshoring this week, with the summary as follows:

·  U.S. needs reforms, not rhetoric: Government officials, business leaders and academics agree that the future of America’s technology complex depends on education, professional training and research investment.

·  Companies guarding ‘secret sauce’: Although many U.S. technology businesses are contracting or considering some form of foreign outsourcing, they are adamant about keeping intellectual property at home–for now.

·  How India is handling backlash: In stark contrast to the heated reaction among many U.S. workers, the country that is most associated with offshoring is both subdued and puzzled by the opposition that has arisen.

·  The next technology battlefields: Rather than trying to reverse the outsourcing wave, the best way for America to fend off foreign competition is to invent technologies that will drive a new industrial cycle.

What the US needs fundamentally is reform.  The US invented the software industry, and then allowed congress to enact protectionist measures, restrict the number of visas available to technology companies, and forced those same companies to build overseas facilities in order to stay competitive. The nobs in congress dont seem to understand that software doesnt require massive amounts of capital, or an advanced infrastructure to build.  It needs people.  Demanding that it be built by a diminishing pool of poorly educated American workers, when the top graduates of IIT in India are available is idiotic.  Equally idiotic is enacting visa restrictions preventing those top graduates from emigrating to the United States.

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