What Causes Outsourcing

"Both Democrats and Republicans complain about the "outsourcing" of
jobs to India and China. But one major cause of outsourcing,
indicated in this article about the outsourcing of medical research,
is a cluster of government controls imposed by those same
politicians: the left's attack on drug company profits, the right's
attacks on stem-cell research, and both sides' imposition of
immigration barriers that discourage talented foreigners from coming
to or staying in the United States."

-Robert Tracinski, Editor, TIADaily.com


"Medical Companies Joining Offshore Trend," Andrew Pollack, New York
Times, February 24

" 'What I see in India is the same kind of opportunity I saw in
[Silicon] Valley in 1979,' said Dr. Manian. In the United States, he
said, 'a million dollars doesn't go more than three months.' In
India, by contrast, 'I can run a group of 20 people for a whole year
for half a million dollars.'

While life sciences jobs may be less vulnerable to outsourcing than
jobs in information technology, industry officials say many
companies are looking at that option as pressures mount to control
drug prices and cut development costs....

[W]hat is going offshore might be called 'back laboratory' work,
somewhat equivalent to the back-office information technology
functions that have moved in the past. But there are signs that the
biotech migration will go beyond low-level work.

Roche, the big Swiss drug company, just opened a research center in
Shanghai to make use of Chinese scientists returning from
abroad. 'US academia had been run by Chinese post-docs for the last
10 years, if not 15,' said Jonathan Knowles, head of global research
for Roche....

Another potential advantage for some Asian countries is their more
permissive stance on embryonic stem cell research, a promising new
field that is restricted in the United States."

http://tinyurl.com/5psho

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