This week I am sitting down with Steve Michaels, the owner of an I.T. outsourcing company currently relocating jobs to India.
Q.: It's nice to talk to you Mr. Michaels; would you mind providing some background as to how you got into the Information Technology business?
A.: Well, in the mid-1980s I was heavily involved with starting some of the first Bulletin Board Services in the Genesee County-area. It led me into having a great appreciation for programming and eventually I finished my degree and went to work for the Federal government in the SIPRNet project.
Q.: So why is your company moving to India?
A.: In short, labor costs and difficulty finding qualified talent willing to work for prevailing industry wages. I looked into moving to California, but the cost of doing business there versus India was limiting and I decided it would just be better for my customers to tap into the Indian pool of labor.
Q.: So who are your customers?
A.: Everyone from local governments to small businesses state-wide. I've discussed it with them, and the ability to lower their bills is key; I will still be in the area, providing a human presence, but instead of using American labor for maintaining the contracts, I will be fulfilling them with foreign labor using remote desktop interfaces and lights-out management for servers -- we're able to provide similar services to what we were for a fraction of the cost.
Q.: Don't many companies not want to work with foreigners like that?
A.: Yes and no; most are interested in the lower bills. I am now able to undercut a significant portion of my competition. And for those who require a human, American presence, I will be there for them when possible.
Q.: Do you see that mentality as what is driving the American labor market to the bottom of the barrel as it were?
A.: Well, it does have an impact. But there are many factors to take into account; Firstly, I've been unable to find enough hard workers who are qualified to take on challenges such as these at the prevailing wages in the area. Secondly, if I were forced to hire substandard labor, it would hurt my business and my bottom line. As far as the economy as a whole, if they fall into that substandard category and they are unable to get hired, they should find a different profession.
Q.: Are these jobs going overseas for good, or do you see them coming back in the future?
A.: It depends. I am planning on continuing work in the area, expanding my business. If I need more of a physical presence, I will wind up hiring additional workers. It is very possible that as I take over contracts from my competition I will need more of that presence and I will hire American workers again, paying above the prevailing wages. I do believe this is a good thing for the American economy as a whole.
Q.: Well, I would like to thank you for your time. I have one final question; what team is your Super Bowl pick?
A.: Packers, for sure.
No comments:
Post a Comment