« A Federal Marriage Amendment | Main | Facts about downsizing »

Tom Friedman on outsourcing

...when I came to the 24/7 Customer call center in Bangalore to observe hundreds of Indian young people doing service jobs via long distance โ€” answering the phones for U.S. firms, providing technical support for U.S. computer giants or selling credit cards for global banks โ€” I was prepared to denounce the whole thing. "How can it be good for America to have all these Indians doing our white-collar jobs?" I asked 24/7's founder, S. Nagarajan.

Well, he answered patiently, "look around this office." All the computers are from Compaq. The basic software is from Microsoft. The phones are from Lucent. The air-conditioning is by Carrier, and even the bottled water is by Coke, because when it comes to drinking water in India, people want a trusted brand. On top of all this, says Mr. Nagarajan, 90 percent of the shares in 24/7 are owned by U.S. investors. This explains why, although the U.S. has lost some service jobs to India, total exports from U.S. companies to India have grown from $2.5 billion in 1990 to $4.1 billion in 2002. What goes around comes around, and also benefits Americans.

Read the whole column.

Addendum: Here is Virginia Postrel's latest piece on trade.

Second addendum: How about this press release, India awarding a big contract to Hewlett-Packard, thanks to Kevin Bone for the pointer.

Posted by Tyler Cowen on February 26, 2004 at 05:25 PM in Economics | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c66b253ef00e5508342fe8833

Listed below are links to weblogs that reference Tom Friedman on outsourcing:

» DOES NOT COMPUTE from Begging To Differ
I'm in favor of free trade, so I was going to quote this Tom Friedman column (Hat tip: Tyler Cowen) on how the outsourcing of jobs to India has created other new jobs in the U.S. ... until I realized... [Read More]

Tracked on Feb 27, 2004 12:41:38 AM

» Tyler Cowen is on a roll from Daniel W. Drezner
Astute readers of danieldrezner.com may have detected a slight drop-off in posting productivity. This is due to a plethora of reasons, some of which will become clear in due course. However, Tyler Cowen at Marginal Revolution has been producing a... [Read More]

Tracked on Feb 27, 2004 10:51:27 AM

» The CIOs most important decision! from Thinking Out Loud: Thought Leadership from an Enterprise Architect
The CIOs most important decision has nothing to do with technology. It does have a lot to do with whom they hire. Whom a CIO hires determines the skill set, culture and focus of an organization and also its diversity...... [Read More]

Tracked on Oct 8, 2004 9:48:03 PM