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Onshoring the new trend?


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poochee's Avatar
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21-Oct-2007, 09:06 PM #1
Thumbs up Onshoring the new trend?
Some firms replace offshoring with onshoring Bringing back jobs to the US!

Small U.S. towns can match India in cost.
Northrop Grumman plans up to 50 sites for tech support.
Dell opens a center in Idaho.


By Peter Pae, Los Angeles Times Staff Writer
October 21, 2007

CORSICANA, TEXAS -- Gary Richardson left this boomtown-gone-bust in 1996 for a computer job in Dallas, the big city 60 miles north.

"I didn't think I would ever come back," Richardson recalled recently, "because there were no jobs like mine here."

Not until this year, when Northrop Grumman Corp. opened an information technology center in town and began recruiting IT specialists and software engineers.

In a twist on offshoring that Northrop has dubbed onshoring, the global defense and technology corporation has been shipping computer work to small-town America, shunning India's Bangalore and Mumbai.

Century City-based Northrop picked Corsicana and six other small cities, including Lebanon, Va., and Helena, Mont., as locations for employees who develop software and troubleshoot technical problems for clients hundreds or thousands of miles away.

It costs Northrop about 40% less to have the work done in Corsicana than in Los Angeles --savings similar to what would be achieved by sending jobs overseas.

"We're getting very high quality and a dedicated workforce," said Thomas Shelman, president of Northrop's Information Technology Defense Group and creator of the company's onshoring program.

Onshoring, in fact, is becoming trendy.

Some U.S. companies have recently pulled back from India to set up shop in rural areas where access to high-speed broadband connections isn't the problem it was just a few years ago, and where lower real-estate prices and wages are attractive.

Excerpt from: http://www.latimes.com/news/la-fi-on...track=ntothtml
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21-Oct-2007, 09:10 PM #2
Good news Makes me feel better about hitting the civilian streets in 2 years.
Bastiat's Avatar
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21-Oct-2007, 10:54 PM #3
Quote:
Originally Posted by poochee
Some firms replace offshoring with onshoring Bringing back jobs to the US!
How can you take such joy in forcing Indian children into the streets to starve when their parents become jobless from reoutsourcing.
poochee's Avatar
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21-Oct-2007, 11:09 PM #4
Quote:
Originally Posted by ckphilli
Good news Makes me feel better about hitting the civilian streets in 2 years.
Good luck to you!
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21-Oct-2007, 11:10 PM #5
...
Gabriel's Avatar
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21-Oct-2007, 11:19 PM #6
That is sad about the families in other countries that are accustomed to having work if it is suddenly taken from them
poochee's Avatar
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21-Oct-2007, 11:22 PM #7
Quote:
Originally Posted by Gabriel
That is sad about the families in other countries that are accustomed to having work if it is suddenly taken from them
True...but we are losing too much, IMO. It is a cruel world sometimes.
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22-Oct-2007, 03:26 AM #8
Quote:
Originally Posted by Bastiat
How can you take such joy in forcing Indian children into the streets to starve when their parents become jobless from reoutsourcing.
Methinks we have an agent provacateur amongst us.............
buck52's Avatar
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22-Oct-2007, 06:31 AM #9
Quote:
Originally Posted by Bastiat
How can you take such joy in forcing Indian children into the streets to starve when their parents become jobless from reoutsourcing.
don't even get me started...

go home...
Paquadez's Avatar
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22-Oct-2007, 06:45 AM #10
Interesting that Briggs and Stratton, probably the World's largest supplier of stationery plant engines, did this quite some time ago, mainly because they were experiencing an increasing rate of failures in service and realised they were unable to absolutely control quality when manufacturing processes were outsourced abroad.

They revolutionised their structures, changed the attitude they had to staff and dramatically increased pay along with quality.

Surprise, surprise the end cost was in fact lower due to their savings on warranty.

All assembly staff have bought in to the quality initiative and the factories are now full of happy, well-paid bunnies!

In similar vein, back in the 80s when I was working in Silicon Valley for a spell, I flew from Orange County, LA back to San Jose where I was based and much enjoyed my companion, who was a young engineer from Fairfield, who was headed places.

He told me, when we discussed offshoring (which was then the vogue in silicon), that Fairchild had in fact closed their plant in Malaysia and brought final wafer and packaging functions back to the US.

By a combination of extra staff training and roboticisation, their costs were lower and their rejection rates were steeply reduced.

That decision, however, took vision, ability and capital investment; one of the dire problems in US and UK (what's left of it!) industry.

Offshoring to Asia etc is not necessarily the Shangri Lai it's represented as being.
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22-Oct-2007, 10:50 AM #11
Quote:
Originally Posted by Bastiat
How can you take such joy in forcing Indian children into the streets to starve when their parents become jobless from reoutsourcing.
Ever been to northern Ohio? We aren't called the the rust belt for nothing. Or how about the hills of Kentucky? Why shouldn't we rejoice in US firms bring jobs back to the US where they started.

If the world economic picture calls for manufacturing and services to be preformed in other countries because their people are in need of said products/services, then set-up shop in those countries. But taking jobs from us because of lower costs/tax breaks/ lax EPA rules and then shipping the product to the US doesn't fly well, not in the rust belt.
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22-Oct-2007, 10:54 AM #12
Quote:
Originally Posted by Gabriel
That is sad about the families in other countries that are accustomed to having work if it is suddenly taken from them
Did you feel the same way when the jobs were headed overseas??

This new trend is great news for this country, I for one am sick and tired of calling tech support and talking to "joe" from India.
Striker840's Avatar
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22-Oct-2007, 10:56 AM #13
Quote:
Originally Posted by katonca
Ever been to northern Ohio? We aren't called the the rust belt for nothing. Or how about the hills of Kentucky? Why shouldn't we rejoice in US firms bring jobs back to the US where they started.

If the world economic picture calls for manufacturing and services to be preformed in other countries because their people are in need of said products/services, then set-up shop in those countries. But taking jobs from us because of lower costs/tax breaks/ lax EPA rules and then shipping the product to the US doesn't fly well, not in the rust belt.
That is the absolute truth there my friend. Ohio and Michigan have taken a serious hit from manufacturing jobs being outsourced, imported steel, etc...

Bring those jobs back here, put Americans back to work and just watch how things improve in this country.
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22-Oct-2007, 12:32 PM #14
Quote:
Originally Posted by Bastiat
How can you take such joy in forcing Indian children into the streets to starve when their parents become jobless from reoutsourcing.
Simple. The companies are HERE, not THERE, and all sourcing of any sort should be done in house, as it were.
valis's Avatar
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22-Oct-2007, 12:34 PM #15
anyone seen that cartoon clip spoofing outsourcing?

"My computer won't boot up"

"Ah, thank you very much for calling sir. Have you tried rebooting it?"

and on.
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