[Politech] Lauren Weinstein on why not to outsource U.S. tech jobs

From: Declan McCullagh (declan@private)
Date: Tue Feb 03 2004 - 19:58:43 PST

  • Next message: Declan McCullagh: "[Politech] Census Bureau's reply to Washington Times on data release [priv]"

    Inside Risks 164, CACM 47, 2, February 2004
    
    
    Outsourced and Out of Control
    
    
    Lauren Weinstein
    
    Outsourcing (farming out production or other work) is not new. But when 
    advanced technologies such as telecommunications and computing are applied 
    to outsourcing, along with vast differences in pay around the world, the 
    results can be unfair, unwise, alarming, and even dangerous. While 
    frequently providing significant "productivity" enhancements, the 
    associated negative risks include domestic unemployment and 
    underemployment; privacy, security, and reliability concerns; and other 
    serious problems.
    
    In the past, the outsourcing of manufacturing jobs has been qualitatively 
    different from the very broad and rapidly expanding sort of outsourcing 
    we're seeing today. Most of the vast range of jobs now being exported to 
    inexpensive foreign labor markets from "higher-wage" countries would be 
    impractical to outsource in such a manner without today's inexpensively 
    accessed communications and data infrastructures.
    
    Improved corporate bottom lines are often cited to justify outsourcing. But 
    the devastating impact of lost domestic employee positions cannot 
    reasonably be ignored. Former employees are understandably bitter when 
    their jobs are outsourced to foreign workers being paid only a small 
    fraction of domestic wages. In at least one case, a company has used the 
    threat of outsourcing to demand that their local employees accept basically 
    the same low wages as foreign workers.
    
    The ability to cheaply communicate across the globe via voice and data 
    networks has permitted vast outsourcing of customer service, health-care 
    transcription and medical information processing, financial and systems 
    analysis, software development, and many other extremely technical and 
    sophisticated tasks. Highly skilled domestic workers, including many who 
    probably have read this column on a regular basis, have seen their 
    livelihoods lost to technologically enabled outsourcing and are now 
    competing with teenagers for low-pay, unskilled jobs.
    
    As more customer-support call centers move to non-domestic locations, 
    complaints from consumers about poor service rise. In many cases, 
    language-related barriers cause communications difficulties. Computer 
    manufacturer Dell, Inc. recently announced it would cease using its 
    India-based call centers for corporate customers due to such complaints. 
    However, ordinary non-corporate Dell consumers may still find themselves 
    routed to offshore customer service representatives. (See 
    <http://callcenterinindia.blogspot.com>callcenterinindia.blogspot.com for 
    illuminating information about India-based call centers.)
    
    Large-scale outsourcing is growing at a frenetic pace around the globe. 
    Many outsourced jobs involve countries where significant privacy laws do 
    not exist; even if those laws are improved under pressure of potential lost 
    business, effective enforcement would still appear to be highly 
    problematic. Customer service outsourcing can give risky access to data 
    such as names, addresses, Social Security numbers, telephone call records, 
    and medical information. Recently, a Pakistani subcontract worker 
    threatened to post U.S. patients' medical data on the Web if claimed back 
    pay was not forthcoming.
    
    Software, sometimes of a critical nature, is now routinely subcontracted to 
    foreign outsourced environments, bringing risks of development 
    miscommunication or worse. The U.S. General Accounting Office noted the 
    possibility of malicious changes to code since significant U.S. air traffic 
    control system Y2K work had been subcontracted outside the U.S. without 
    mandated background checks.
    
    There are even moves to outsource computer system administration to foreign 
    centers, often in countries with poor (if any) computer security laws, 
    creating the possibility of massive abuse of domestic systems by distant 
    persons who could be difficult or impossible to effectively prosecute. 
    Thanks to subcontracting, you might not even know that the company managing 
    your system is using such facilities and personnel.
    
    There are many fine workers performing outsourced tasks around the world. 
    Yet, it is more difficult to maintain control over customer information, 
    security, development, and other critical issues, when work is performed 
    distantly or under completely different laws. The opportunities for errors, 
    mischief, and serious misdeeds are alarming, to say the least. Businesses 
    and governments need to carefully consider the manners in which outsourcing 
    can be reasonably exploited, and how it must be controlled.
    
    --Lauren--
    Lauren Weinstein
    <mailto:lauren@private>lauren@private or 
    <mailto:lauren@private>lauren@private or 
    <mailto:lauren@private>lauren@private
    Tel: +1 (818) 225-2800
    Co-Founder, PFIR - People For Internet Responsibility - 
    <http://www.pfir.org>http://www.pfir.org
    Co-Founder, URIICA - Union for Representative International Internet
          Cooperation and Analysis - <http://www.uriica.org>www.uriica.org
    Moderator, PRIVACY Forum - <http://www.vortex.com>http://www.vortex.com
    Member, ACM Committee on Computers and Public Policy
    <http://www.pfir.org/lauren>http://www.pfir.org/lauren
    
    
    _______________________________________________
    Politech mailing list
    Archived at http://www.politechbot.com/
    Moderated by Declan McCullagh (http://www.mccullagh.org/)
    



    This archive was generated by hypermail 2b30 : Tue Feb 03 2004 - 21:25:11 PST