WUI (Writing under the influence)

Somebody once said we are all Americans, sometimes born in the wrong places.
On a warm autumn day in 1986, while enjoying beer with my college buddies,
I decided to join my new homeland.

I've come to appreciate the ideals that helped create this great country.
Liberalism, political-correctness, multiculturalism and moral equivalence
are destroying it.

This old house Grovenet Wal*Mart Visiting Poland American wine better than French.

Tuesday, December 06, 2005


It's not just India and China anymore

An interesting article in BusinessWeek Online talks about the vast yet untapped source of R&D engineers in Eastern Europe.
So far this year, Poland, the region's largest country, has won some 25 major tech or research-driven investments, according to the Polish Foreign Investment Agency. One lure is the country's thriving universities, which are churning out 55,000 graduates per year in math, science, computing, and engineering. Krakow, which boasts three universities within a 100-kilometer radius, is attracting the likes of Motorola (MOT ), Capgemini, and Delphi -- all of which have set up R&D centers in the area. Siemens employs 500 telecom-software and systems-software engineers in its Wroclaw R&D center. Says Richard Lada, vice-president for Central and Eastern European operations at Motorola, "Poles have a can-do spirit."

IBM (IBM ), the latest to join the migration, announced in September that it will open a development lab in Krakow focused on systems and security management. India's Tata Consultancy Services, which already operates an IT outsourcing center in Budapest, is considering setting up another in Krakow.
Should American engineers be worried? In the short term, yes. But the (unintended?) goal of globalization is equalization of markets, including labor. So in the longer term, as the engineers are being snapped by growing economies worldwide, they will demand higher salaries.

Outsourcing has another, darker, side to it. It may not be just about satisfying appetites of high-tech companies that can't find enough engineers in the US. Some insist that there are many unemployed and underemployed engineers in the US. But from the economic point of view maybe it all makes sense. These unlucky engineers place a downward pressure on American salaries so eventually salaries worldwide will even out. Of course, it doesn't sound very convincing to anybody who finds himself in this situation. It doesn't seem very fair to have to change one's line of work so an engineer in Poland can be employed by American corporation. Oh, well, the worst that can happen to me is moving back to Poland.

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