A Hard Look at Popular Outsourcing Myths

Tuesday, August 16, 2005

What happened to the "Giant Sucking Sound" of Outsourcing?

Check out the original blog at:
http://www.rentacoder.com/CS/blogs/the_day_the_giant_sucking_sound_of_outsourcing_went_quiet/archive/2005/08/06/What_Happened_to_the_Giant_Sucking_Sound_of_Outsourcing.aspx

What happened to the "Giant Sucking Sound" of Outsourcing?
The conventional wisdom is that outsourcing has been very bad for the U.S. Information Technology workforce. After all, now that a company can transfer the work of a $50/hour U.S. programmer to an equally skilled programmer in India or Romania and pay only $5/hour for the same job, what are U.S. workers to do? Ross Perot once famously described the result of job loss as the “Giant Sucking Sound”…from the movement of the jobs overseas. Virtually every newsgroup, blog and magazine editorial quotes anecdotal evidence of someone who has lost a job in the recent down turn as validation of this theory. Almost all make dire predictions of the end of U.S. I.T. dominance .

It’s too bad that none of these people took the time to notice that the U.S. Bureau of Labor and Statistics survey last month showed the number of jobs in U.S. IT has rebounded to the highs of 2001. (see “Reliving the summer of 2001” in InformationWeek) If they had, we would have heard a completely different type of “Giant Sucking Sound”… a whole lot of people holding their breaths while forced to ask themsleves “If outsourcing is the awful bogey man I believe it to be…then WHY ARE THE JOBS STILL HERE?”