U.S., Workforce, Offshoring, Outsourcing

U.S. workers should offshore themselves

18 Jan 2006 | (Thinking Point) | Eric Lipin

Changes in economics often create fear. This fear can spin out of control, blinding people to the opportunities that are present in any change. If we can stay open and flexible, the most efficient and fulfilling opportunity usually presents itself.

In the 1990's, I lived in Oregon where logging was a divisive issue. Environmentalists were fighting hard to prevent the cutting of old growth forests, while loggers cried out to protect their livelihoods. In the end, after years of struggle, the forests were protected and many loggers lost their jobs.

Soon after, many loggers found new work: picking high-priced wild mushrooms in the protected forests. Upscale restaurants were hungry for these prized delicacies and paid handsomely for them, and the loggers could keep their identity as 'forest people'. It has not been a complete solution, but it was the type of creative thinking necessary to thrive in change.

The trend in economics currently causing fear in workers is outsourcing, specifically offshoring. As more and more jobs are outsourced to lower cost destinations around the world, William J. Rothwell, professor of work force education and development in Penn State's College of Education asks, 'What should American workers do in the future?" His response is simple - be flexible and go where the work is, and in his own words, "Here's a thought: They should outsource and offshore themselves."

American expertise is still widely prized around the world. Many Asian nations are willing to host American experts and consultants. China employs some 30,000 foreign experts each year to assist with the explosive growth that the country is experiencing. Similar needs exist in other parts of the developing world.

As just one example, foreign workers in the United Arab Emirates are granted immediate work visas and face the lowest tax burden in the world at 1.5 percent. There is more work than local people can provide, and only 5 percent of the population of the UAE are natives of the country. The UAE is building about 300 skyscrapers simultaneously to keep up with demand for office space.

The UAE and Bahrain are ranked as among the most competitive nations in the world, while developed nations like Australia, the United Kingdom and the United States are ranked in 13th, 17th and 20th position respectively, with regard to organized efforts to improve competitiveness. While not all workers may qualify to jump on the offshoring gravy train, many who could take advantage of it have not yet discovered its appeal. Tax burdens are lower. The quality of life is often the same -- or higher.

The moral to the story is that American workers should not sit idly by while jobs leave. As the old saying goes, "if you can't beat them, join them." American workers should join employers by going offshore.

To see Professor Rothwell's full article in the Centre Daily Times, click here

Author: Lipin, Eric
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