Jobs Flying Faster From U.S.

JOHN SHINAL / SF Chronicle

Given the kind of propaganda that the business elites have been promoting since the beginning of the job crisis, one would think that these elites have come to their senses and are now doing everything in their power to promote "JOB GROWTH" in the country; and – that given this reality – blue-collar Christians associated with the so-called TEA PARTY REVOLUTION should feel comfortable in the alliance that FOX NEWS is promoting that links them with these very same business elites. [For more on this budding alliance, please see our article, "Crossing the Rubicon."]

Sadly, American Christians are being taken for a ride; FOX NEWS - as Geronimo once said of the white man who signed numerous treaties with him only to break them later - "Speaks with forked tongue."


U.S. corporations are sending work overseas faster than previously thought, according to Forrester Research Inc., whose controversial report 18 months ago helped stoke the national controversy over offshoring American jobs.

Chart of Projected Number of Jobs Moving Offshore

source: Bureau of Labor Statistics; Forrester Research Inc

In its latest study, Forrester predicts that by the end of next year, U.S. firms will offshore more than 800,000 service jobs, 40 percent more than the firm estimated previously. Forrester's overall estimate remains the same: The firm predicts that about 3.3 million jobs will go overseas by 2015.

The Cambridge, Mass., researcher said the largest U.S. employers are expanding the types of work they send overseas. Where telemarketers and software developers used to bear the brunt of the job loss, bank loan processors, insurance claims adjusters and even legal assistants now share the pain.

Critics of offshoring seized on the original Forrester report as evidence that shipping jobs overseas would devastate service-sector employment and the middle-class workers who fill those occupations ...

Despite the criticism, the largest U.S. companies are accelerating their offshoring plans ...

Even companies that aren't prepared for the transition are choosing to export jobs anyway, said Forrester analyst Stephanie Moore. "We're seeing crazy interest in offshore outsourcing for the cost savings," said Moore, who spoke at a news conference in Orlando ...

In contrast to conventional wisdom, the majority of those jobs will not be farmed out to large outsourcing firms in India and other countries. Rather, they will be located in foreign subsidiaries of Fortune 1000 companies, according to Forrester.

That contention is similar to one reached by two UC Berkeley economics professors in a book they published last year.

"People don't realize that when (U.S. firms) go abroad, for the most part they use their own workers" [i.e., cheap foreign labor they employ directly, pocketing the money saved for themselves], said Ashok Bardhan, a senior research associate at the Fisher Center for Real Estate and Urban Economics.

In fact, two-thirds of the U.S. companies that sent work offshore during the 1990s kept the work with their own [foreign units] units and affiliates, said Bardhan, who co-authored the book "Globalization and High-Tech Industry: California and Beyond."

Many in Silicon Valley ... and say Forester's conclusions amount to nothing more than fear-mongering ...

Even as they embrace the trend, U.S. companies worried about political fallout from their employment moves are being more secretive about their offshore plans.

The offshoring moves aren't made in a vacuum, and the issue has been raised by elected officials who decry the loss of U.S. jobs. As a result, many of Forrester's clients who are offshoring are doing so "underground," said Moore.

"We have one client who refused to use the word offshore, she said.