Thursday, August 03, 2006

Because It Looks Good on the Books

My brother in law is a VP of Product Management for a major software development firm. They employ thousands across their various products lines. He pretty much knows where I stand on issues of offshoring. This past weekend, I had the opportunity to spend some time with him and I adked him falt out what percentage of his development employees were in India. His first response was "why do you ask." I replied "I'm just curious." Finally, he said about 25%.

I wasn't surprised at the remark interestingly enough, but his next few statements floored me. He said "but they really aren't productive so we really don't save any money, they may evan cost us more in the long run." My next question of course was "Then why do it?" Here's the punch line "because it looks good on the books."

His company displaces thousand of American jobs because "it looks good on the books".

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