The World Is Flat

“It is delicate with the staff,” said Glocer, who has cut the entire Reuters staff by roughly a quarter, without deep cuts among the reporters. The Reuters staff, he said, understand that this is being done so that the company can survive and then thrive again. At the same time, said Glocer, “these are sophisticated people out reporting. They see that our clients are doing the exact same things. They get the plot of the story... What is vital is to be honest with people about what we are doing and why and not sugarcoat the message. I firmly believe in the lesson of classical economists about moving work to where it can be done best. However, we must not ignore that in some cases, individual workers will not easily find new work. For them, retraining and an adequate social safety net are needed.”

In an effort to deal straight with the Reuters staff, David Schlesinger, who heads Reuters America, sent all editorial employees a memo, which included the following excerpt:

Off-shoring with Obligation I grew up in New London, Connecticut, which in the 19th century was a major whaling center. In the 1960's and 70's the whales were long gone and the major employers in the region were connected with the military-not a surprise during the Vietnam era. My classmates' parents worked at Electric Boat, the Navy and the Coast Guard. The peace dividend changed the region once again, and now it is best known for the great gambling casinos of Mohegan Sun and Foxwoods and for the pharmaceutical researchers of Pfizer. Jobs went; jobs were created. Skills went out of use; new skills were required. The region changed; people changed. New London, of course, was not unique. How many mill towns saw their mills close; how many shoe towns saw the shoe industry move elsewhere; how many towns that were once textile powerhouses now buy all their linens from China? Change is hard. Change is hardest on those caught by surprise. Change is hardest on those who have difficulty changing too. But change is natural; change is not new; change is important. The current debate about off-shoring is dangerously hot. But the debate about work going to India, China and Mexico is actually no different from the debate once held about submarine work leaving New London or shoe work leaving Massachusetts or textile work leaving North Carolina. Work gets done where it can be done most effectively and efficiently. That ultimately helps the New Londons, New Bedfords and New Yorks of this world even more than it helps the Bangalores and Shenzhens. It helps because it frees up people and capital to do different, more sophisticated work, and it helps because it gives an opportunity to produce the end product more cheaply, benefiting customers even as it helps the corporation. It's certainly difficult for individuals to think about “their” work going away, being done thousands of miles away by someone earning thousands of dollars less per year. But it's time to think about the opportunity as well as the pain, just as it's time to think about the obligations of off-shoring as well as the opportunities... Every person, just as every corporation, must tend to his or her own economic destiny, just as our parents and grandparents in the mills, shoe shops and factories did.

“The Monitor Is Burning?”

Do you know what an Indian call center sounds like? While filming the documentary about outsourcing, the TV crew and I spent an evening at the Indian-owned “24/7 Customer” call center in Bangalore. The call center is a cross between a co-ed college frat house and a phone bank raising money for the local public TV station. There are several floors with rooms full of twenty-somethings– some twenty-five hundred in all-working the phones. Some are known as “outbound” operators, selling everything from credit cards to phone minutes. Others deal with “inbound” calls-everything from tracing lost luggage for U.S. and European airline passengers to solving computer problems for confused American consumers. The calls are transferred here by satellite and undersea fiber-optic cable. Each vast floor of a call center consists of clusters of cubicles. The young people work in little teams under the banner of the company whose phone support they are providing. So one corner might be the Dell group, another might be flying the flag of Microsoft. Their working conditions look like those at your average insurance company. Although I am sure that there are call centers that are operated like sweatshops, 24/7 is not one of them.

Most of the young people I interviewed give all or part of their salary to their parents. In fact, many of them have starting salaries that are higher than their parents' retiring salaries. For entry-level jobs into the global economy, these are about as good as it gets.