'Slowing offshoring will hurt the Silicon Valley' Sunday, July 18 2004 09:23 Hrs (IST)
Silicon Valley:
Offshoring is here to stay and any legislation designed to slow or stop it would ultimately hurt the technology-heavy Bay Area region, a new report released in Silicon Valley said.
The shift of work to lower-wage countries is just one of a number of global forces affecting job creation and loss in the region and efforts to prevent offshoring will not succeed, the study, sponsored by Joint Venture: Silicon Valley Network, Bay Area Economic Forum and Stanford Project on Regions of Innovation and Entrepreneurship, said.
The study, titled 'The future of Bay Area jobs, the impact of offshoring and other key trends', was conducted by management consulting firm A T Kearney, which based it on 120 interviews, analysis of 9,000 job listings and other data.
"The research makes clear that global trends will force continued creation and destruction of jobs in the Bay Area," said Sean Randolph, CEO of the Bay Area Economic Forum, adding that instead of fretting about this trend, business and political leaders must focus on preserving the Bay Area's genius at innovation or they will risk the region's job base.
"This is a train that's long left the station. If we restrict companies from being able to use a tool that's really required for playing at a global level, they're going to lose the game, and that's a loss for everybody," said John Clacchella, an A T Kearney vice president.