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March 4, 2008

new category!

Since several of you have very real concerns about the job economy and what's been called the rise of the creative class, I’ve made a category called "Offshoring / The Creative Class." Sara just posted about the topic’s place (or lack thereof) in this election cycle), and I think further discussion would be quite appropriate for our class if you’re up for it.

March 3, 2008

Growth in "off-shoring"

I heard a report on MPR this morning based on this article from CFO Magazine on the growth of off-shoring in corporate America. The author states that off-shoring is now so commonplace that it isn't nearly as politically sensitive as it was in previous election years. Her report supports the predictions made by Tapscott and Williams--unfortunately. She believes that only "the most interesting jobs" will be left in this country. While that's very good news for a few people, I want to know what everyone else is going to be doing...

Here's an except: “Companies and offshore service providers alike have expanded their views on which functions can be offshored, with everything from traditional call-center work to legal research on the table. They have also learned how to better manage the outsourcing process. At the same time, finance chiefs have gained a healthier respect for the hazards involved in sending work overseas (see "Staying Put" at the end of this article).

Far less fearful of a public backlash than before, companies today have a world of options when it comes to offshoring arrangements. "It's become a global bazaar," says Raffy Ohannesian of DLC, a finance and accounting-services firm. "Whatever you need, you will be able to find it at a lower cost, with a minimal or acceptable level of quality degradation, or sometimes even improvement. It's just a more mature market."

Offshoring, in short, has grown up.�

From: "Offshoring Spreads Its Wings: From East Asia to Eastern Europe, offshore outsourcing is taking off." Kate O'Sullivan, CFO Magazine March 1, 2008

—Sara