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Digg It - Offshoring the Middle Class
The science historian James Burke commented in his book, "The Axemaker's Gift," that new technology is frequently a double-edged sword. It initially offers too many benefits to resist, but in the long term it can result in unintended and unpredicted consequences that are harmful to those who adopted it.
The use of the Internet to
The use of the Internet to
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
outsource American jobs is a classic example of this principle in action. The Internet initially made it easier for American workers to do many kinds of work. Now it's threatening the very jobs it once helped support.
The Internet has become the latest tool for American business managers who believe low wages are beneficial to the
The Internet has become the latest tool for American business managers who believe low wages are beneficial to the
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ir businesses, and should be rule, not the exception. This philosophy is so widely supported by Wall Street that stock prices tend to go down when government reports indicate that wages are up. The argument goes that that high wages cause inflation and lower profits. While this may have been true at an earlier point in industrializ
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
tion, now there are sound arguments high wages produce neither.
On the point that high wages cause inflation, in reality, that is, when inflation is defined by a dictionary rather than by a politician, inflation can only be caused by government presses printing more money than was previously in circulation. (As defined by Webster'
On the point that high wages cause inflation, in reality, that is, when inflation is defined by a dictionary rather than by a politician, inflation can only be caused by government presses printing more money than was previously in circulation. (As defined by Webster'
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
s 1913 Dictionary, inflation is " Undue expansion or increase, from overissue; -- said of currency.")
What high wages can bring about is in reality price escalation, though in a high technology economy, even that is questionable. The purchase of the computer by a majority of consumers has actually brought the price of computers do
What high wages can bring about is in reality price escalation, though in a high technology economy, even that is questionable. The purchase of the computer by a majority of consumers has actually brought the price of computers do
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
n. Research and development has allowed hard drives not only to come down in price as their capacity skyrocketed, it has also allowed hard drives to require less and less metal to manufacture.
On the point that high wages cause lower profits, even some business publications disagree with that now.
Business Week recently ran an ar
On the point that high wages cause lower profits, even some business publications disagree with that now.
Business Week recently ran an ar
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
ticle that questioned both the concept and desirability of a low wage economy ("The Costco Way," April 12, 2004). The article compared the approach of Wal-Mart owned Sam's Club, noted for their low wages and harsh working conditions, with Costco, a company with a similar business model except that it pays better and offers better w
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
rking conditions. The results were that Costco generated 34 billion dollars compared to Sam's 35 billion, but with only two thirds of the employees. It doesn't take a Cray computer to determine that Costco workers are able to spend much more buying products and services than Sam's Club employees.
While it may initially seem better
While it may initially seem better
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
for an American company's bottom line to ship work to India, the long term consequences of many companies doing that is a general and substantial reduction in the disposable income necessary to buy many American products. Money sent by American businesses to Indian workers is spent in India, primarily on products and services prod
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
ced in India.
In March, 2004, the San Jose Mercury News ran a story which estimated that one in six jobs in Silicon Valley was vulnerable to offshoring. The figure was one in seven jobs for San Francisco, and one in ten jobs for the rest of the nation. Given that the jobs being offshored are higher paying than average, the annual
In March, 2004, the San Jose Mercury News ran a story which estimated that one in six jobs in Silicon Valley was vulnerable to offshoring. The figure was one in seven jobs for San Francisco, and one in ten jobs for the rest of the nation. Given that the jobs being offshored are higher paying than average, the annual
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
total loss to the national economy could be in the hundreds of billions of dollars.
Offshoring advocates claim that offshored jobs will be replaced with comparable paying jobs, but they can't say where the jobs will come from. So far, statistics indicate the software engineers replaced by offshore Indians have been a having a toug
Offshoring advocates claim that offshored jobs will be replaced with comparable paying jobs, but they can't say where the jobs will come from. So far, statistics indicate the software engineers replaced by offshore Indians have been a having a toug
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
h time finding replacement jobs, of any kind. According to IEEE-USA, the U.S. wing of the Institute of Electrical and Electronics Engineers, the joblessness rate for electrical and electronics engineers rose in 2003 to a record 6.2 percent, compared with 4.2 percent in 2002.
The effect of offshoring in Silicon Valley has been high
The effect of offshoring in Silicon Valley has been high
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
y noticeable and largely negative. Pay rates are substantially down, and work hours are substantially up. Accustomed to outrageously high rents, Silicon Valley landlords lowered rents only to about 1999 levels after the crash, while software development companies set the pay rates back to about 1995 levels. The result was devastati
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ng for local merchants. The Sunnyvale shopping mall, located within five miles of Apple, Sun, Intel, Texas Instruments, AMD, AOL, Yahoo! and Ariba, went bankrupt.
Like the Internet, offshoring is proving to be another double-edged sword. Initially, it offered rewards too irresistible to businesses, but in the long term offshoring
Like the Internet, offshoring is proving to be another double-edged sword. Initially, it offered rewards too irresistible to businesses, but in the long term offshoring
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ay prove to be a disaster for America. No one on Wall Street seems to be considering the consequences of offshoring, but it's not hard to see where it will lead, if one looks at the different phases offshoring has gone through.
In phase one, America imported tens of thousands Indian software engineers and effectively trained them
In phase one, America imported tens of thousands Indian software engineers and effectively trained them
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
in the techniques of developing world class software. In this phase, the Indians imported spent a good part of their salary in this country on rent, food, and other expenses. The profits earned by the software companies that employed them also stayed here.
In phase two, Indians software engineers were allowed to work from home, in
In phase two, Indians software engineers were allowed to work from home, in
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
this case India. Their salaries were spent in India, but the salaries of those who managed them were spent in America, as well as the software company's profits.
In phase three, the management duties were also exported to India, and even larger salaries were spent in India, though software companies' profits were still made and sp
In phase three, the management duties were also exported to India, and even larger salaries were spent in India, though software companies' profits were still made and sp
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ent here.
In phase four, rapidly approaching, India will launch its own software industry, exporting world class software to America, Europe and Asia, undercutting American software prices and decimating the software industry America pioneered.
Ultimately, the question facing American businesses is not whether they should have lo
In phase four, rapidly approaching, India will launch its own software industry, exporting world class software to America, Europe and Asia, undercutting American software prices and decimating the software industry America pioneered.
Ultimately, the question facing American businesses is not whether they should have lo
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
paid employees or high paid employees, but whether they want other businesses in America to have low paid employees or high paid employees. One company's employees are another company's customers.
To a degree, the offshoring of some jobs is unavoidable. But to base an economy on the practice in the long term is just not going to
To a degree, the offshoring of some jobs is unavoidable. But to base an economy on the practice in the long term is just not going to
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
work. What is being offshored is not just jobs, but entire industries, and the American middle class. America can't afford to lose either.
From Advertising & Marketing Review May, 2004.
Copyright © 1994 - 2006 by Glen Emerson Morris
All Rights Reserved
Copyright © 1994 - 2006 by Glen Emerson Morris
All Rights Reserved
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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