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Subject: Re: GISList: New outsourcing laws....
Date:  02/24/2003 02:17:30 PM
From:  Cameron Crum



Please be careful not to put too many words in my mouth. I never indorsed the
law, but rather said I didn't think it was too bad an idea. I actually think
government should stay out of regulating any business. To show my true colors, I
would say that the government shouldn't be in this business anyway, but that is
a whole different topic. As for the job/tax situation, government paid emplyoees
also pay taxes. Governemt contractors pay taxes on thier employees. Government
employees also buy things, go out to eat, drive cars, etc, all of which they pay
taxes on and all of which they can not do if they don't have a job at all. While
I am all for very limited government, having people work for the government is
still better than giving them unemployment. Better still is having them work for
a private company. Then everyone wins. The employee probably gets paid better,
the work gets done more effciently, and the government gets their precious taxes
that they can dream up new ways to spend.

You are right about it not being un-American to outsource. In fact it is the
American way to find new, cheaper, better ways to do things. I personally would
simply choose to support our own economy by outsourcing here. I can name plenty
of independant contractors who would perform GIS services for resonable rates
and need the work. As for saving money and being able to hire more people by
outsourcing, what kind of work would they do, administrate? We are rapidly
becoming the adiminstrators of the world, I would prefer to keep us the
innovators. Anyway, I agree that companies should be able to do what they want.
Any profit for US based companies is good for the economy in the long run. It is
up the individuals who they choose to support in their business dealings.

I'll stop responding now so as not to clutter up the list any more.

Regards,

Cameron Crum



Anthony Quartararo wrote:

> Cameron,
> Do you know what the loaded hourly rate is for an experienced, professional
> photogrammetrist, or a mid-level software engineer in the US/Canada is ?
> There are several sources for GIS industry salary surveys on the market.
> This new law really only applies to government contracts (the government
> would not want to attempt to limit business-business transactions). How
> wouldn't hiring more government contractors [ anti-capitalistic measures ]
> require the need for more taxes? Governments get their funds from taxes. The
> ability of any given government to procure new services, short of "free",
> means that it has to spend money from some budget, and if that has not been
> forecasted by collection of taxes, then either one of two things will
> happen, something else will be sacrificed to pay for those GIS contracts, or
> new taxes will be levied. I would challenge anyone to point out a government
> GIS organization that truly pays for itself [that is, all-in costs, no
> subsidies from "G&A"]. Adding more workers (whether government employees to
> handle the work load internally or outsourcing them to US-based workers)
> costs a ton of money. I seriously doubt any politician is going to propose
> cutting Medicaid so more ArcInfo licenses can be sold in New Jersey to sit
> more rear-ends in chairs for 8 hours a day [oh, and don't forget the 2 15
> minute breaks, 30 minutes of lunch, 1.5X in benefits costs, 10 days of
> vacation, sick leave, moving costs, maternity leave, paternity leave, ADA
> costs, wage classifications, 401K administration costs, training costs,
> turnover costs, etc. etc. etc.] Add on the slim "profits" that government
> contractors have to negotiate with their "clients", pad a few extra misc.
> costs here and there, and shazaam, who's got money to pay for that in these
> current times? Duct tape and plastic sheeting frenzy aside, government
> organizations should be the ones initiating repeal of "buy America" clauses
> in their contracts, at least for our industry, not the other way around.
>
> It is not un-American to outsource overseas. In fact, I will argue it is
> absolutely the smart thing to do in the right situation. More profit
> achieved by outsourcing would allow hiring more people domestically to grow
> a business using hard-earned cash, not some lethal arrangement with a VC.
> How many import cars are driven here in the US, how many computers are made
> outside the US, there is a reason for that. Living in reality (in business
> terms) means not relying on "credit" to make payroll. American culture
> thrives on the "whimpy" syndrome which is, "I'll pay you Tuesday for a
> hamburger today...". This has contributed more to our economic problem than
> outsourcing ever has. It is harder and harder, in our industry at least, to
> earn a profit, any

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