Outsourcing helps the U.S. economy. Rekhi Singh insists it's true. Here's one example why: Recently his company, El Dorado Hills software developer R Systems Inc., was hired for a project by a Southern California digital-broadcasting firm. Doing the work in El Dorado would have blown the client's budget. So Singh improvised. He shipped the "low-value" programming work to R Systems' office in his native India. The "high-value" work is being done by eight programmers at headquarters, including six new hires. The client can afford the project, and some jobs were added in El Dorado.
"Ultimately, if costs are saved, more jobs will be created," Singh said. "That's what America's always been about."
Try telling that to Laura Hamm. Her $40,000-a-year purchasing job at Hewlett-Packard Co. in Roseville is moving to India this month. She finds it hard to find the benefit in this. "It's good for the American economy? No," she said. "I don't know if I'm going to get a job like this again."
The debate over outsourcing intensifies with every job that moves. Pressed by global competition, U.S. corporations are shipping overseas white-collar jobs that once seemed reserved for Americans: purchasing, accounting, customer service, legal research, software coding, medical record-keeping and so on. The jobs move with the flick of a key stroke, thanks to dramatic improvements in telecommunications, and apparently no job is sacred. A study by economists Cynthia Kroll and Ashok Bardhan at the University of California, Berkeley, says 14 million white-collar jobs are at risk nationwide. Massachusetts tech consultant Forrester Research Inc. says 3.3 million jobs will leave by 2015.
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