OaktownBear said:
dimitrig said:
bearister said:
The coronavirus will change the economy, our jobs and our health care system - Axios
https://www.axios.com/coronavirus-lasting-changes-3b24d031-9acf-4ba2-9028-671e02fbdf5f.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top
I have expressed this elsewhere, but I drastically disagree with this. I work for a company that sells tools that support a company (among many other things) in outsourcing and teleworking. We went through the predicted outsourcing revolution. It failed. Do you notice that the frequency of calling a company and getting an Indian accent on the line has dropped tremendously? Some things can be outsourced. Many, many cannot. As I said, we did a lot of business with companies who wanted to outsource and then we did a lot of business for customers who wanted to bring operations back on shore.
Due to data security issues, many major corporations are not only keeping operations onshore they are disallowing vendors from serving them off shore. If you think there are too many countries that want anyone working in a home in a third world country, let me tell you, you are wrong. Telework by white collar workers is done over computer systems. Companies do not want people accessing their computer systems from countries that will offer cheap labor. Your system gets hacked and customer data is breached, good bye to everything you saved by outsourcing. THIS IS A HUGE IMPEDIMENT TO OUTSOURCING WHITE COLLAR WORK. If you don't understand the impact of data security in today's world, you don't understand the challenges of outsourcing anything connected to a computer network.
Real estate costs were always dramatically lower in many foreign countries. Companies always could have saved a ton in theory by setting up an office offshore. Again, many tried it and failed. But seeing that telework leads to saving on real estate makes companies LESS likely to see savings outsourcing.
Outsourcing in many fields sucks because more local knowledge is required to be efficient than you think. Plus, frankly much of the quality of work sucks.
Telework is a boon to companies to have domestic workers and it could be a boon to small town America. It not only saves money for companies on real estate but it allows them to get the best people wherever they are and to cover time zones instead of tying everyone to an office. I literally know people who left major companies for a job that allowed them to telecommute from a home in a rural community.
I think your first sentence is somewhat at odds with your last paragraph.
Ok, for some things maybe you won't outsource internationally - at first, anyway. For one thing, unless it is a First World country the infrastructure just doesn't exist - yet. In India the power shuts off once per day and Internet connections are horrible.
However, you absolutely can outsource domestically. How many people in rural America can do some of the jobs remotely that you'd have to pay someone in California twice as much to do? In the past, this was sometimes done. It's why things like call centers moved to low wage states. I think that this experience has opened the eyes of management that jobs previously thought of as needing to be done at the office maybe do not need to be.
There are a lot of paper pushing jobs whether at the DMV or at Fortune 500 that can be done from home but no one wanted to setup the infrastructure to enable it. I think companies (not tech companies but Old Economy business) are seeing that it isn't that complicated and that technologies exist to enable it and that it's not just payroll, HR, or IT that can be outsourced but even engineering, sales, and marketing. Now, there are reasons to keep some of those functions in-house, but in-house doesn't mean an office anymore. Apple just built a huge campus for 12,000 employees. I think it will ultimately be a relic of a time gone by. Probably only 2,000 of those people (the R&D teams) need to work there.
At my organization for example we have one secretary per N people. It was always just assumed that the secretaries would have offices nearby the people they support because that's how it has always been. I think this shelter-in-place order is proving that that is not really necessary in most cases. Since we are a big organization we have a couple hundred secretaries. Space is also at a premium for us. Offices have been getting smaller and smaller as we have had a need to convert more office space into labs to build and test hardware. I guarantee that upper management is already thinking about "encouraging" administrative staff to work from home as a result of seeing it in action. There were some transient costs to get to this state in terms of training and investing in infrastructure, but we've already paid them. Our organization is over 6000 people and we are finding we can get almost everything we need done with only 500 people on site most days and maybe twice that needing to go on site occasionally.
I completely understand the data security issue. Some of our work is classified. However, we are figuring out ways to get that work done without having to send people into a SCIF every day. The data of most companies isn't classified so I imagine if we figured out ways to do it then so can they. No one wanted to be the first CEO to put his job on the line to try it, but now we (and others) have had an excuse to try and it has gone better than anyone expected. I expect there will be more willingness and acceptance to permit remote work now that the genie is out of the bottle - and in many cases (here is where we disagree) remote work will ultimately lead to more outsourcing.