4 ms·
This is the new reality - it's hard to argue against a >10x disparity in median salaries compared to your outsourced replacement, even if it might be a failure
by StringyBob 11y ago
This is the new reality - it's hard to argue against a >10x disparity in median salaries compared to your outsourced replacement, even if it might be a failure in the long term.
Do you think you could you persuade IBM's board (a proxy for their shareholders) that as a US worker you really deserve >10x the pay of an 'equivalent' worker in some other countries?
History will continue to repeat itself across corporate behemoths. The process is just too compelling with a short-term profit motive in a globalized economy.
Xenophobia is a common reaction to this. It misses the point. There are great people amongst your 'replacements' who are hired. There will also be terrible people. The same would happen if the process was entirely contained within one country. Imagine trying to hire the bulk of a skilled companies' workforce in one go. It's a disaster.
The kicker is that just like acquisition, outsourcing is rarely successful. The upfront financial benefits are clear. The true costs are from a change a workforce - lost knowledge, skills, quality and ethos (The things that really power a company to success). By the time they realize their mistake - it's too late, and a new management who haven't learnt the lessons will have already been rotated in.
Companies die of old age. Big blue is playing chess with the reaper.