China's currency move may hurt U.S. tech

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offshoring IT jobs to China may be reduced too: This seems to me to be a GREAT thing for techies here and US technology jobs. Anything that affects rising costs in terms of salaries of techies in China is a great thing for workers here, even if it means prices rise. I think it also says that China wants its people to have more purchasing power in the world when buying say, American cars and electronics. This means that Chinese will begin to get a decent standard of living and that means they will be competing correctly in the world's marketplace and at the same time buying more services from us (including technoloy work). That includes a better ratio of IT wages to quality of output, rather than some artificial assumption that IT quality and innovation is the same the world over but an be bought cheaper somewhere else, which is incorrect. Anything that forces us all as a world of workers to compete on a level playing field means its now possible for Americans to be bid on for projects as well from Chinese firms...and that type of thing is very possible. The search for IT talent and innovation the world over, no matter what country its in, at top salaries, is where we are heading. Not just some crazy search for the slave labor by Western firms...

What we see in India is a HUGE attrition rate in IT, salary hikes, inflation, lack of qualified workers, and other factors that are slowly bringing cost to do IT business over there the same as here in hiring US outsourcing teams. Right now savings are only 10% in offshoring to India even though their salaries are less than 1/4 of ours (Venture LLC Survey). What does that say about the benefits of shifting IT to India or China? The affects of poor management, poor quality, lack of talent, and lack of cost/wage advantages are slowly taking their toll on business managers decision to move IT work over there. And the yuan appreciating slowly is just one more factor against that now...

Im thrilled this currency issue is moving in this direction. With tech jobs rising fast and salaries as well here in the US in IT today, this is just another influencer forcing business to rethink their offshoring positions and move more jobs back to the US. And they will have to pay good money for good IT staff finally.

I personally would rather make more money in IT and have job security and have more respect for my job title from the companies I work for and yet pay more money for their chips and products than get crappy cheap IT work and products from them thats cheaply made, poorer in quality, and with less jobs here at the benefit of fatter corporate profits.; Posted by: wildranger Posted on: 07/22/05 You are currently: a Guest | Members login | Terms of Use